The loss of a loved one is overwhelming in and of itself, but dealing with probate can intensify these feelings. You may wonder where to begin and what is required of you during this process. Whether or not your family member left a will, it is vital to hire our probate lawyer in Annapolis MD to help you navigate the road ahead.
At Chesapeake Wills & Trusts, we take the stress and confusion out of probate so you can be sure that all requirements are fulfilled and your loved one’s estate is properly settled. We are dedicated to our clients and go above and beyond to provide exceptional service and counsel. For over 20 years, we have helped clients with various probate and estate planning matters. We will provide valuable guidance throughout the entire process.
What Is Probate?
Probate is the process by which an individual’s estate is settled upon their death. This means that all of their assets and debts are identified and reviewed by the court to ensure that debts are paid off, all applicable taxes are paid, and assets are dispersed to the correct heirs and beneficiaries.
An individual’s estate can be settled peaceably, or it may be contested if an issue arises. All estates that contain property solely in the decedent’s name must undergo probate to ensure the estate is properly settled. In some instances, probate may also be avoided if certain steps or safeguards are put into place.
Types of Probate in Maryland
When an estate passes into probate, it is resolved by one of two types of estate administration. The first one is known as administrative probate, and the second is judicial probate. It is important to understand the difference between these two types of probate to better understand what to expect during the legal process.
- Administrative probate: The general probate process for wills and estates that are uncontested. These cases are generally handled by Maryland’s Register of Wills.
- Judicial probate: The process that a will or estate must go through when it is being contested. These cases are generally handled by Maryland’s Orphans’ Court.
In both types of probate, a personal representative must be appointed to handle the settling of the estate. This individual will help with the distribution of the estate, paying off debts, and paying any associated taxes and fees.
Types of Estates in Maryland
In addition to the two types of probate, there are also estate types to consider. A regular estate is considered to be one where the value of the decedent’s assets are greater than $50,000, or $100,000 if the spouse is the only heir. Conversely, a small estate is one where the decedent’s assets are less than $50,000 or $100,000 if the spouse is the sole heir. A modified administration may also be used for regular estates to issue a report rather than an inventory.
Regular and small estates can also be subject to judicial proceedings if the estate or will is contested for any reason. In addition to these primary types of estates, an estate can also solely include a vehicle, or can include property that is outside the state of Maryland.
What to Expect from the Probate Process in Maryland
Probate can be overwhelming, complex, and confusing, especially if this is your first time going through the process. As such, it is important to understand the probate process in Maryland so you are prepared and can set your expectations accordingly. The following steps are required to complete the probate process:
- File a petition to open the estate for probate (which includes filing the will), assess the size of the estate, and move forward with installing a personal representative for the estate
- The personal representative must provide a list of interested persons and their addresses to show who the heirs and beneficiaries are for the estate
- The personal representative must file an inventory and information report detailing all assets, solely or jointly shared, and their value
- The personal representative must file a first accounting of the value of the estate and any activity related to it
- Creditors must be notified and they may file a claim against the decedent’s estate for debts owed
- The personal representative can file additional accounts to update the value and activity of the estate
- Assets can be dispersed to heirs and beneficiaries after the final account has been approved by the court
It is also essential to hire a probate attorney in Annapolis, MD to help you navigate probate and prepare you for what to expect in your specific circumstances. The team at Chesapeake Wills & Trusts will walk you through what you need to know about the process, such as what documents you will need, the role and responsibilities of a personal representative, what assets must be reviewed during probate, and what mistakes to avoid. We can also answer all your questions.
How Long Does the Probate Process Take to Resolve in Anne Arundel County
The time it takes to resolve probate depends on the size and complexity of the estate, and whether or not it is contested. Smaller, uncontested estates will take less time to settle than large or contested estates. It can easily take six months to a year or more to fulfill all requirements associated with probate. Our lawyers can provide clarity on what timeframe you may be looking at based on a number of factors regarding your loved one’s estate.
How the Probate Process Differs With a Will versus Without a Will
While a decedent’s estate must go through probate in most circumstances, the process is often more streamlined and takes less time when a will is in place. It also means that assets can be distributed to heirs and beneficiaries according to the decedent’s wishes. A will provides significantly more control over what happens to the estate if there is no will.
When there is no established will, the state of Maryland decides what happens to a decedent’s estate according to intestacy laws. The court will divide and distribute assets as fairly as possible per the law rather than the decedent’s wishes. This may mean that individuals whom the decedent would not have selected will receive assets, or selected beneficiaries will not receive the entirety of what the decedent may have allotted themselves.
Maryland’s Intestate Succession Laws
When an individual dies without a will in Maryland, the state’s intestate succession laws go into effect. According to Maryland intestacy law, the hierarchy of surviving beneficiaries is taken into account and assets are distributed by a specific formula. The decedent’s spouse and children are generally the primary recipients of the estate and assets are distributed to the spouse and/or children in accordance with the law.
In the event that a spouse or children are not present, then the decedent’s estate passes on to the surviving parents. If there are no parents, then siblings may inherit the estate instead. If there are no siblings present, extended relatives may be entitled to inherit. In rare circumstances, the decedent’s estate passes to the state in the event that no eligible familial relationships exist to claim the estate.
The Role of the Personal Representative During Probate
A personal representative for the estate must be designated at the outset of the probate process. This person may already be named in the will, or may be appointed by the court. This individual’s job is to handle the settling of the estate. They are responsible for creating an inventory of the estate, paying debts and taxes, and distributing assets according to the decedent’s wishes.
The personal representative is also responsible for finding assets for probate. Depending on how thorough or organized the decedent was, this may be straightforward or complicated. When compiling an inventory of the estate, the personal representative should take steps to find and review mail, bills, safes, safety deposit boxes, tax returns, and various retirement or insurance accounts to identify and locate assets. Employers and banks can provide information as well.
Fees and Taxes Associated With Probate
Fees and taxes must also be taken into account when resolving an estate after a decedent’s death. First, probate fees may apply to cover probate proceedings. Depending on the value of the estate, fees can range between $0 and $10,000 or more. There may also be additional nominal fees for drafting or filing various documents, forms, or certificates needed during probate. A lawyer can provide clarity on the type and amount of fees you may have to pay.
Taxes may also have to be paid on the estate. Maryland has both an estate and an inheritance tax. Estate tax is applied to the value of the estate before any distributions are made. However, only estates valued at $5 million or more must pay taxes to the state. All estates of a lesser value receive an exemption from this tax. The threshold for federal estate taxes is for estates that are worth $13.99 million or more.
Immediate family members such as a spouse, children or step children, spouses of children or stepchildren, parents, siblings, or grandparents are exempt from paying inheritance tax on any monetary bequests they receive. However, Maryland levies a 10% inheritance tax on all other individuals who receive money from the decedent’s estate.
How Estate Planning Can Help Prepare for Probate
Estate planning is one of the best ways to protect your estate and streamline the probate process for your loved ones after you are gone. First and foremost, having a will in place can make the process much easier, ensure your wishes are carried out, and can reduce the time it takes your family to settle your estate. However, there are also steps to take to avoid probate in Maryland altogether, which include:
- Creating a revocable living trust that allows a designated trustee to settle your estate directly from the trust and transfer assets to beneficiaries
- Designating a trusted individual and setting up joint ownership for real estate assets, vehicle assets, and bank accounts
- Assigning beneficiaries on accounts such as life insurance and retirement policies so that these funds are directly received by the appropriate individuals
- Distributing assets while you are alive to ensure that your chosen beneficiaries receive your intended assets, and that those assets bypass probate and estate taxes
- Updating your estate plan regularly to ensure the most up-to-date beneficiaries, assets, and chosen distributions
To ensure you have the most effective plan in place to suit your needs, it is important to discuss your options with a lawyer. They can help you ensure that your estate and wishes are protected, whether your loved ones have to go through the probate process or can bypass probate altogether.
Navigate Probate with the Help of Our Experienced Attorneys
Our probate lawyers in Annapolis, MD can help you make sense of the various requirements involved in settling your loved one’s estate. We can also help you plan for the future of your beneficiaries after your death. Regardless of what your probate and estate needs are, the lawyers at Chesapeake Wills & Trusts have extensive knowledge of the process and the law to provide you with counsel, support, and guidance throughout the process.
Our lawyers can also advocate for you and help ensure that your loved one’s estate is protected, and you and surviving family members receive all that you are entitled to from the estate. They will make sure your rights are protected, and all steps are completed accurately and on time. They will help you draft and file the appropriate paperwork throughout each stage of the process.
Contact Chesapeake Wills & Trusts Today for a Free Consultation
Probate can be a complicated process, and having the support of our probate lawyers in Annapolis, MD can help ease the pain and stress you are feeling during this difficult time. Chesapeake Wills & Trusts ensures that you do not have to walk this road alone and that you have someone to advocate for you. To learn more about how we can help you navigate probate, or plan ahead for it, contact us today to schedule a free consultation with our team.