How do I set up an Estate?
WHAT IS AN ESTATE?
In common terms, estate is everything a person owns and owes when they die. This can include money in bank accounts, real estate, cars, investments, personal belongings, and other assets. It can also include outstanding debts, bills, and other financial obligations.
In legal terms, an Estate establishes who has authority to handle certain property and responsibilities after someone dies. Planning ahead by creating a Will, organizing financial records, preparing an appropriate estate plan, and discussing your wishes with an attorney can help your loved ones understand what you own and make the estate administration process easier when the time comes.
If someone has already passed away, however, the process is different. Their estate may need to go through estate administration, also known as probate. Here are the basic steps for getting started in Maryland, but seek qualified counsel for your unique situation:
1. Contact the Register of Wills.
Start by contacting the appropriate Register of Wills office in the county where the person lived at the time of death. The office can explain the required paperwork and help determine which estate administration process applies.
2. Gather important documents and information.
You may need the original will, if one exists, proof of death, information about the person’s assets and debts, funeral expenses, and the names and contact information of people who may inherit from the estate. Keeping financial records and important documents organized during a person’s lifetime can make this step much easier for their family.
3. Determine which type of estate administration applies.
Maryland has different procedures for small estates and regular estates. The appropriate process generally depends on the value of the property subject to administration and other circumstances. The Register of Wills can help explain which process may apply.
4. Have a personal representative appointed.
A personal representative is the person legally authorized to manage the estate. A will may name someone for this role, but that person generally must still be formally appointed. The Register of Wills issues official documents called Letters of Administration to establish the representative’s authority.
Being a relative does not automatically give someone the legal authority to access the deceased person’s accounts, manage their property, or distribute their belongings. The personal representative must follow Maryland law and fulfill specific responsibilities.
5. Manage the estate and distribute the property.
The personal representative identifies and protects estate assets, handles valid debts and expenses, completes required filings, and distributes the remaining property according to the will or Maryland law.
HOW CAN I MAKE THIS PROCESS EASIER ON MY FAMILY?
The best time to prepare is before someone passes away. Creating an estate plan with an attorney, keeping important documents organized, maintaining an updated list of assets and accounts, and clearly communicating your wishes can help reduce uncertainty and delays for your loved ones. Although planning ahead cannot eliminate every legal requirement, it can make the process more a lot more manageable.
If you are handling a loved one’s estate now, a qualified attorney can help you understand your responsibilities, navigate the paperwork, and avoid costly mistakes.
