The Duties of a Personal Representative of an Estate in Maryland
[Updated 4/8/24]
When a person dies, their property and assets become part of their probate estate. A personal representative is appointed to administer the estate. Other terms for personal representative include executor and executrix. The personal representative may be chosen by the decedent and nominated through the decedent's Will. If the person did not have a Will, Maryland's estate laws prioritize the list of people who may serve as the personal representative of an estate.
Being Appointed as the Legal Personal Representative by the Probate Court
Being nominated in a Will does not mean you have the legal authority to represent the estate or dispose of estate property. You must petition the Orphan's Court through the local Register of Wills to be appointed as the legal personal representative. The Orphan's Court is the probate court for Maryland. It has ultimate jurisdiction over the administration of probate estates.
Once the Register of Wills approves your petition to serve as the personal representative of an estate, you have numerous duties and responsibilities to fulfill. The duties and responsibilities of personal representatives are the same whether or not you were nominated in a Will or petitioned to serve under Maryland intestate laws.
What Is the Role of Personal Representatives Regarding Maryland Probate Estates?
A personal representative acts on behalf of the probate estate to manage the decedent's property. Generally, the personal representative secures the estate's assets, pays the decedent's debts, files tax returns, and distributes assets to heirs.
However, there are many more tasks and responsibilities that a personal representative may be required to complete by law. Furthermore, the size of the estate and the specific aspects of the estate could add to the personal representative’s duties and tasks. Common duties of a personal representative in a Maryland estate include:
Opening An Estate With The Register Of Wills
The person possessing a person's Will must file the original copy of the Will with the Register of Wills in the county where the deceased person lived at the time of death. However, filing a Will does not begin the probate process or open a probate estate.
As discussed above, the person nominated in the Will to serve as personal representative must petition the Register of Wills to open the estate and appoint the personal representative to administer the estate. The person may only act on behalf of the estate after the Register of Wills issues Letters of Administration.
Estate Management Duties And Responsibilities
Managing a probate estate entails many tasks and legal duties. At the beginning of the estate administration process, the personal representative has a duty to notify known and unknown creditors that the deceased person has died, and a probate estate has been opened. This step is accomplished by publishing a notice to creditors in an approved newspaper. Creditors have a specific deadline for filing claims with the estate, or the claims are barred.
The personal representative must also notify heirs listed in the Will and any heirs that would have inherited from the probate estate had there not been a Will. If the personal representative is unfamiliar with the decedent’s family, they may need to hire a lawyer to identify and locate heirs.
Inventory And Managing Assets
The personal representative must file an Inventory and Information Report within three months after opening the estate. The personal representative must secure the decedent’s assets, appraise or value each asset, and prepare a detailed inventory to file with the Register of Wills. Depending on the nature of the assets, the personal representative may need to retain a professional appraiser to value specific assets.
During this time, the personal representative manages the estate’s assets. That might include storing the assets, collecting rents for leased property, selling assets, closing bank accounts, and taking other actions to protect the estate assets. Generally, personal representatives open an estate bank account to hold estate funds while administering the estate property.
The personal representative must abide by the terms of the person’s Will. For example, the Will might direct the personal representative to sell all real estate and divide the proceeds among the heirs. On the other hand, the Will might direct the personal representative to transfer real estate to a specific heir.
The personal representative’s duties regarding assets depend on the type of assets and the instructions in the decedent’s Will.
Payment Of Debts And Taxes
The personal representative must review claims filed with the Register of Wills and pay just debts from the estate assets. If the personal representative believes a debt has been paid or is not valid, the personal representative can object to the creditor’s claim.
If required, a personal representative must file estate and income tax returns for the estate. They must also file the decedent’s final income tax return if they had taxable income. Taxes are paid from the estate assets before transferring any assets to heirs or family members.
If there are insufficient funds in the estate to pay the decedent’s debts, taxes, and administration costs, the personal representative must follow estate law as to which debts have priority for payment. The court approves the final distribution before the personal representative disburses any funds when there are insufficient funds to pay debts, taxes, and costs.
Represent The Estate In Legal Matters
The personal representative is the representative of the estate in any legal matters. Legal matters could include disputes regarding creditor claims and actions brought by the decedent’s heirs. The personal representative must also pursue any claims the estate might have against other parties to collect amounts owed to the deceased person when they died.
Distribution Of Assets To Heirs
After payment of creditor claims and any taxes owed by the decedent or the estate, the personal representative distributes the estate’s remaining assets to the heirs according to the terms of the Will. If the deceased did not have a Will, the assets are distributed according to Maryland intestate laws.
The personal representative must prepare and file an accounting and petition the Register of Wills to close the estate. The accounting includes all assets of the estate and activity of administration. The first accounting is due nine months after the estate is opened. If the personal representative is not ready to close the estate, subsequent accounting reports must be filed every six months by the personal representative until they file a final accounting.
How to Choose a Personal Representative for Your Estate
As part of your estate plan, you must choose a personal representative or administrator. The person appointed should be someone you trust and who understands your wishes regarding your estate. It is common for an individual to choose their surviving spouse to administer his or her estate. However, you can also choose anyone you wish to be your administrator, including another relative, a family friend, or a professional, such as an accountant or lawyer.
Qualities that indicate someone would be an effective personal representative for your estate include, but are not limited to:
Willing and able to serve – Always talk with someone to ensure they are willing to assume the responsibility of being an administrator and meet the qualifications for a personal representative under state law.
Loyal and trustworthy – The person you choose should be someone you trust to carry out your wishes even if your heirs challenge your wishes.
Organized and detail-oriented – The probate process involves a great deal of paperwork. Personal representatives are required to keep accurate and detailed books and records. There are deadlines that must be met. Being organized is useful when handling a large volume of work and tasks.
Effective communication skills – Personal representatives must be able to communicate with all parties in the probate process, including the court, heirs, creditors, and all other parties involved with the probate.
Good judgment, common sense, and honesty – A personal representative should be honest and transparent when dealing with all estate matters. They should also have common sense to make sound decisions and good judgment to make decisions in the best interests of the estate and beneficiaries.
While a personal representative does not need specific credentials or experience, it is important to note that they may be required to handle complicated tax returns, appraisals, and financial matters. Therefore, you may want to consider hiring a probate attorney or other professional for a high-value estate and other issues that could complicate the administration of the estate.
Sometimes, a person may consider appointing co-personal representatives. However, more than one person acting on behalf of the estate could complicate matters. You would need both individuals to sign all documents on behalf of the estate. Furthermore, if the co-personal representatives disagree about an issue, the matter may need to be taken before the probate court.
Personal Representatives and Their Fiduciary Duty
When a court appoints someone to administer an estate, that person has a fiduciary duty to do what is in the best interests of the heirs and the estate. The actions of a fiduciary must benefit the estate and heirs financially. The assets held in the estate are for the benefit of the deceased person’s chosen beneficiaries. Those assets must be protected.
Examples of breach of fiduciary duty include:
Failing to meet deadlines or file required documents with the court.
Using estate funds or assets for their benefit.
Refusing to distribute property and funds timely.
Failing to provide required information to heirs and beneficiaries.
Not honoring the provisions of the Will or a testamentary trust.
Mismanaging assets by failing to secure or protect the assets or placing the assets in high-risk investments.
If a personal representative breaches their fiduciary duty, the beneficiaries or an interested party may petition the probate court for a temporary restraining order to stop the personal representative from further actions until the court can determine whether their actions violated their duty. The court may remove the personal representative or order supervised administration to monitor the personal representative’s actions.
In addition to voiding the personal representative’s actions, the probate court could order the personal representative to compensate the estate for any losses incurred because of their actions.
Contact Our Maryland Estate Planning Lawyer for More Information
Navigating the duties and responsibilities of administering a probate estate can be challenging, especially if you have never dealt with the probate process. The above explanation summarizes some of the personal representatives duties in a general estate.
A personal representative may be required to perform numerous other duties and file additional forms to carry out their responsibilities and fiduciary duties. A personal representative can hire a Maryland estate administration lawyer to provide legal advice and assist the personal representative in performing these duties.
If you have questions regarding your duties as a Personal representative of an estate or other estate planning matters, contact our office to speak with Steve today.
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