Small Estates in Maryland

Maryland sorts estates into two tracks by value. The small estate track exists so that a modest estate is not put through the full administration process, and for many families it is the whole of what probate involves.

When an estate qualifies

An estate is a small estate where the property subject to administration is:

• $50,000 or less, or
• $100,000 or less where the surviving spouse is the sole heir or legatee

Anything above those figures is a regular estate. The thresholds are set by statute and have changed before, so confirm the current figures with the Register of Wills rather than relying on an older article.

What counts toward the figure

This is where estates are misclassified. The test looks at property subject to administration, meaning assets held in the deceased person’s name alone. It does not include:

• Retirement accounts and life insurance with a living named beneficiary
• Property held jointly with right of survivorship
• Payable-on-death and transfer-on-death accounts
• Assets titled in a trust

A person can leave a substantial amount to their family and still have a small estate, because most of it passed outside probate. The reverse is also true: one account left in a sole name can pull an otherwise simple estate into the regular track.

What the procedure involves

A small estate is opened at the Register of Wills for the county where the person lived, using a petition for administration of a small estate together with the original will if there is one, a certified death certificate, and a schedule of the assets and their values. The Register appoints a personal representative and issues letters, notice is given to interested persons and published, valid claims and expenses are paid, and the balance is distributed.

Compared with a regular estate it involves fewer filings and no formal inventory and accounting schedule. It is usually a matter of weeks to a few months rather than the better part of a year.

Where it still goes wrong

• Undervaluing the assets. The figure is based on fair market value at death, not on what an item feels like it is worth. A vehicle and household contents add up.
• Missing a debt. The personal representative is responsible for paying valid claims before distributing. Distributing first and discovering a creditor afterward is the personal representative’s problem.
• Real property. Real estate in the deceased person’s sole name frequently pushes an estate past the threshold.
• Assuming it is all small. If the value turns out to exceed the limit, the estate has to be converted to a regular estate.

Inheritance tax still applies

Being a small estate does not change who pays Maryland inheritance tax. Close relatives are broadly exempt; a collateral rate applies to others. See probate and estate administration.

Planning so it stays simple

Whether an estate is small is largely decided years earlier, by how things are titled and whether beneficiary designations are current. That is the practical argument for reviewing both. See wills.

Related

• Probate and estate administration
• Trusts
• Estate planning FAQ

Official resources

• Register of Wills, General Estate Information Guide
• Maryland Register of Wills

Talk with a Towson attorney

The Law Office of Thomas K. Mallon, LLC offers a free consultation. Call (410) 847-9075 or request a consultation online. The office is at 1107 Kenilworth Drive, Suite 305, Towson, MD 21204.

This page provides general information about Maryland law. It is not legal advice, and reading it does not create an attorney-client relationship. Maryland law changes, and how it applies depends on the facts of your situation.