When someone passes away, their estate goes through a legal process known as probate. In Maryland, understanding which assets go through probate and which do not is crucial for estate planning and settlement. This article will delve into the specifics of assets subject to probate and those exempt in Maryland, shedding light on how different types of property are managed during the estate settlement process.
Assets Subject to Probate
Assets that typically go through probate in Maryland include:
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Real estate solely owned by the deceased
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Bank accounts in the deceased’s name without a payable-on-death (POD) or transfer-on-death (TOD) designation
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Investment accounts solely owned by the deceased
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Personal property such as vehicles, jewelry, and household items
Legal Code Reference: Maryland Code, Estates and Trusts, Section 6-102
Assets Exempt from Probate
On the other hand, certain assets are exempt from the probate process in Maryland. These may include:
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Life insurance policies with designated beneficiaries
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Retirement accounts with named beneficiaries
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Jointly owned property with rights of survivorship
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Assets held in a living trust
Legal Code Reference: Maryland Code, Estates and Trusts, Section 4-102
Managing Probate Assets
During the probate process, the court oversees the distribution of assets subject to probate according to the deceased’s will or Maryland intestacy laws if there is no will. Executors are responsible for managing the estate, paying debts, and distributing assets to beneficiaries.
Non-Probate Assets
Assets that bypass probate offer several advantages, including privacy, faster distribution, and potential avoidance of probate fees. Proper estate planning can help individuals ensure that their assets are distributed efficiently and according to their wishes.
Final Considerations on Probate in Maryland
Understanding the intricacies of probate and non-probate assets in Maryland is essential for effective estate planning. By knowing which assets are subject to probate and which are exempt, individuals can make informed decisions to protect their legacy and streamline the estate settlement process.
Buried in Work’s Additional Resources
Buried in Work provides Maryland state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
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