At Chesapeake Wills and Trusts, we understand the confusion and misconceptions surrounding the probate process in Maryland. Many clients come to us with preconceived notions about probate that are often rooted in rumor. That’s understandable, because probate can be a complex process with numerous legal requirements, and it’s not something people deal with every day.
We try to make the process as easy and straightforward as possible for our clients. One way to start is by clearing up some of these misconceptions so you can be ready to approach the probate process without being encumbered by false information.
What is Probate?
In Maryland, probate is the court-supervised legal process through which the assets in the estate of a deceased person are managed and distributed. This process involves verifying the deceased’s will (if there is one), preparing an inventory of estate assets, notifying potential heirs and creditors, appraising property, paying debts and taxes, and distributing the remaining assets to rightful heirs or beneficiaries. While it can sound daunting, guidance from a dedicated attorney can make the process manageable and far less intimidating.
Myth #1: Probate is Always a Lengthy and Expensive Process
One of the most pervasive myths about probate in Maryland is that it is always a drawn-out and costly ordeal. However, the truth is more nuanced. The length and cost of probate can vary significantly depending on the complexity of the estate and whether the will is contested. Maryland offers a simplified probate process for smaller estates, which can be quicker and less expensive. By developing strategic plans for your estate, you can minimize the probate process, making it smoother and less costly for your loved ones.
Myth #2: All Assets Go Through Probate
Many believe that all of a deceased person’s assets must go through probate in Maryland. However, this is rarely true. Certain assets can bypass the probate process and transfer directly to beneficiaries, allowing for a smoother transition and less administrative burden. Here are examples of assets that do not require probate:
- Life Insurance Policies: The proceeds from life insurance policies are typically payable directly to the named beneficiaries and do not go through probate.
- Retirement Accounts with Designated Beneficiaries: Accounts such as IRAs and 401(k)s can have designated beneficiaries so assets can be transferred directly to those individuals, avoiding probate.
- Bank Accounts with Payable on Death Clauses: Assets in these accounts can be paid directly to the beneficiary so they do not go through probate.
- Jointly Owned Property with Rights of Survivorship: Property co-owned under a joint tenancy agreement with rights of survivorship automatically passes to the surviving owner(s) without going through probate.
- Assets Held in a Trust: Assets placed in a trust are not subject to probate. The trustee can distribute these assets according to the terms of the trust, bypassing the court system.
Myth #3: The State Takes Your Assets if You Die Without a Will
The idea that the state of Maryland will automatically take your assets if you die intestate (without a will) is a common misconception. The reality is that your assets will be distributed according to Maryland’s intestacy laws if you die without a will. While this means the state determines who receives your assets, it does not mean the state takes them.
Typically, your closest relatives — spouse, children, or parents — will be the first to inherit. Sometimes, assets may be divided up in unexpected ways. Because dying without a will can complicate the distribution process and intestate succession plans might not align with your wishes, you can protect your loved ones best by preparing a will or trust.
Contact a Maryland Probate Lawyer at Chesapeake Wills & Trusts
At Chesapeake Wills and Trusts, we’re committed to helping Maryland residents understand and navigate the probate process. Our team demystifies estate planning and probate concerns, ensuring you and your loved ones are prepared and protected. While we are dedicated to getting the details right and creating plans that provide you with as many benefits as possible, we take a personable approach to the practice of law. We try to explain complex legal concepts in a way that makes sense so that you can make informed decisions about your estate.
When you understand the realities of probate in Maryland, that can alleviate much of the anxiety and uncertainty surrounding the process. Remember, proactive estate planning can significantly simplify the probate process for your loved ones, providing peace of mind for everyone involved.
Whether you need help administering an estate now or you’re planning for the future, we invite you to call (410) 590-1900 or complete the online form today to schedule a consultation with Chesapeake Wills and Trusts. Let us help you navigate the complexities of probate and estate planning with ease and confidence.