Probate is a legal process that validates a decedent's last will and testament, distributes the decedent's assets and pays off all remaining debts. The state of Maryland has a fairly simple probate process for estates that leave a valid will behind, and the state laws are straightforward for estates without a will as well. Probate can get more complicated if the estate owes taxes, there are co-owners of property or joint account holders, or there is an extensive amount of debt.
Estate Executor
When a decedent leaves a valid last will and testament, he has usually named a specific individual to settle the affairs of his estate after his passing. The estate executor must notify creditors of the decedent's passing, inventory estate assets and have them formally appraised, and begin closing the estate by paying off debts in the order set out by law.
Intestate Estates
An intestate estate is one in which the decedent did not leave a valid will; instead, he passed away without testament. When there is no valid will for the estate, the probate court appoints a personal representative to carry out the final estate duties. A personal representative has all of the same duties that an estate executor does: Asset appraisal, debt payoff, and distributing the remaining assets to heirs. The biggest difference with an intestate estate is that the court selects which surviving heirs receive the remaining assets.
Creditor Notifications
A critical step in the probate process involves paying off all of the decedent's outstanding debts. When a probate case is opened, the executor or personal representative must send certified death notices to all known creditors. Creditors have six months to list their debt claims against the estate.
Creditor Payments
Estate assets cannot be distributed to heirs and beneficiaries until all of the debt claims have been paid in full. Debts are paid with the assets of the estate because surviving heirs cannot inherit debt. If needed, the estate executor or personal administrator will sell physical assets to generate the cash needed to pay off all debts.
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