Common mistakes in Maryland estate administration often occur when deadlines are missed, assets are mishandled, or probate requirements are misunderstood, leading to delays, added costs, or personal liability for the personal representative.
Many of these issues arise during estate administration in Maryland because personal representatives are unfamiliar with probate procedures or attempt to navigate the process without guidance.
Mistake #1: Failing to Open an Estate When Required
One of the most common errors is failing to determine whether an estate must be opened in Maryland. When probate assets exist, the estate must be opened with the Register of Wills to allow lawful administration.
Mistake #2: Misclassifying the Estate Type
Incorrectly classifying an estate as a small estate when it should proceed as a regular estate can result in rejected filings and delays.
Mistake #3: Missing Deadlines and Filing Requirements
Maryland probate law imposes strict deadlines for inventories, accountings, creditor notices, and tax filings. Missing these deadlines can delay distributions and expose the personal representative to court action.
Mistake #4: Improper Handling of Estate Assets
Personal representatives must safeguard estate assets and maintain accurate records. Commingling estate funds with personal funds or distributing assets too early can create serious legal problems.
Mistake #5: Failing to Address Tax and EIN Requirements
Many estates require a separate tax identification number. Failing to obtain one can complicate banking and tax compliance.
Mistake #6: Ignoring Fiduciary Duties
Personal representatives owe fiduciary duties to the estate and its beneficiaries. Acting without transparency, favoring certain heirs, or failing to follow court procedures can result in removal or personal liability.
Why Avoiding These Mistakes Matters
Even minor errors can significantly delay estate administration, increase costs, and create unnecessary conflict among beneficiaries. Understanding common pitfalls can help personal representatives approach the process more carefully and efficiently.
Estate administration involves strict requirements and fiduciary obligations. If you have questions or concerns about administering an estate in Maryland, an experienced estates and trusts attorney can help you navigate the process and avoid costly mistakes.