Logo-Website-Header-mediumLogo-Website-Header-mediumLogo-Website-Header-mediumLogo-Website-Header-medium
  • Home
  • Practice Areas
    • Estate Planning
      • Advance Healthcare Directive (AHCD)
      • Power of Attorney (POA)
      • Last Will & Testament
      • Maryland Medical Orders for Life-Sustaining Treatment (MOLST)
      • Trusts
    • Probate
    • Elder Law
    • Medicaid
    • Asset Preservation
    • Guardianship
    • Fiduciary Representation
    • Business/Succession Planning
  • About
    • Richard K. Abraham, Esquire
    • Susan Affleck Bauer, Esquire
    • Patrick Hanley Jr., Esquire
    • Why Plan Ahead?
    • Events & Media Appearances
  • Testimonials
  • Articles
✕
What is Probate?
June 15, 2019
What is Elder Law?
July 1, 2019
Published by Richard K. Abraham, Esquire on June 18, 2019
Categories
  • Estate Planning
  • Fiduciary Representation
Tags
  • Estate Planning
  • Executor
  • Fiduciary
  • Personal Representative

Every Maryland estate has an executor called a Personal Representative (PR).

Before the distribution of assets, a PR has the responsibility to follow the terms of the Will (if one exists) or statues regarding intestacy to the greatest extent possible, undertake all necessary actions to manage the estate’s assets, and pay the proper debt as well as appropriate taxes.

A Personal Representative (PR) is held to a legal standard of prudence and reasonableness. For example, a PR should not use estate assets to purchase volatile stocks, to pay their personal debt, or distribute estate assets before it is time to do so. While being an executor can mean wearing a number of different hats, the following explains several common duties someone can expect in this role.


The Will

Because they are the person responsible for carrying out the instructions within, an executor must locate the most recent originally signed copy of a decedent’s will, read, and understand it.

They should then take the will, a certificate of death, and the other necessary paperwork to the Register of Wills of the county in which the decedent lived in order to open an estate.


Notify Appropriate Parties

Credit card companies, banks, relevant government agencies like the Social Security Administration, and other parties should be notified of the decedent’s death. In a regular estate, one in which the decedent’s assets total more than $50,000.00 (or $100,000.00 if only a spouse is inheriting), you will also have to publish a notice in a local legal newspaper when probate starts. This serves as notification to interested parties.


Handling Of Assets

As a Personal Representative, you will be responsible for the management of Estate assets throughout the probate process.

The first step is determining what assets come into the estate and which pass outside of probate.

  • Accounts and items naming beneficiaries such as bank, stock, or other accounts with POD/TOD designations land will go directly to the named party.
  • Co-owned assets such as financial accounts, land, or property pass directly to the surviving owner.
  • All other assets will be distributed according to the contents of the decedent’s will or the intestacy laws.

Before distribution can occur the PR has several fiduciary obligations to both the estate and the government. Any just debt appropriately claimed against the Estate must be satisfied.

There are also several fees and sometimes taxes associated with Estates that must be paid.

Finally, a document called an Accounting or Statement of Distribution, depending on the size of the Estate, must be filed. These filings show all Estate assets, any gains or losses they have incurred since the owner’s death, and their final disposition. Filing this document provides increased transparency for interested parties wondering what has occurred in an estate and provides an avenue for objections.


Being named an executor is an honor but comes with great responsibility.


If you have questions about the process or feel you are unable to adequately perform the tasks it entails, contact Abraham & Bauer to find a solution today.

Planning ahead is a gift to your loved ones!

Richard K. Abraham, Esquire

Mr. Abraham is an experienced attorney and founding member of the Law Firm of Abraham & Bauer. The Towson, MD office of the firm concentrates its practice in Estate Planning, Elder Law, Probate, Medical Assistance (Medicaid), Guardianship, Asset Preservation and Fiduciary Representation.

He is an active member in a number of professional organizations that focus on law, the senior community, and estate planning. He works with clients in Central Maryland, especially in Towson, Hunt Valley, Lutherville/Timonium, Parkville, White Marsh, Bel Air & Northern Baltimore City.

Schedule a consultation to help you and your loved ones.

Share
0
Richard K. Abraham, Esquire
Mr. Abraham is an experienced attorney and founding member of the Law Firm of Abraham & Bauer. The Towson, MD office of the firm concentrates its practice in Estate Planning, Elder Law, Probate, Medical Assistance (Medicaid), Guardianship, Asset Preservation and Fiduciary Representation. He is an active member in a number of professional organizations that focus on law, the senior community, and estate planning. He works with clients in Central Maryland, especially in Towson, Hunt Valley, Lutherville/Timonium, Parkville, White Marsh, Bel Air & Northern Baltimore City. Schedule a consultation to help you and your loved ones.

Related posts

April 16, 2020

Reasons to Create an Estate Plan Now vs. Later


Read more
March 14, 2020

Having the Talk: Share Your Estate Plan With Your Family


Read more
February 10, 2020

Estate Planning for Your Minor Children


Read more

Comments are closed.

If you are communicating with regard to a CONSUMER DEBT, please be advised of the following: This is an attempt to collect a debt. Any information received shall be used for that purpose. This is a communication with a debt collector. If you are a debtor in a pending bankruptcy case or have been discharged from the debt, this communication is not intended to be an attempt to collect a debt and/or violate any current stay of proceedings. Please also note: when communicating through email, if persons other than you have access to your email address, it may be possible for them to view messages. If you have either provided an email address or stated you want to communicate through email with this office, you may opt out at any time by sending a message to this address stating you no longer want to communicate by email. We do not communicate through any form of social media regarding any consumer debt.
All Rights Reserved © 2015-2022 Abraham & Bauer, LLC
    • COVID-19 Update »