Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Detailed Answer
1. Identify and List Creditors
As personal representative (executor), begin by gathering the decedent’s financial records—bank statements, credit-card bills, loan agreements and utility accounts. Create a list of known creditors, including their contact information and outstanding balances.
2. Provide Direct Notice to Known Creditors
Maryland law requires you to mail notice to each known creditor. Under Md. Code Ann., Est. & Trusts § 7-104 (link), you must send written notice within four months of your qualification as personal representative. The notice must:
- State the personal representative’s name and address
- Specify the date of qualification
- Inform creditors of the deadline to file claims
3. Publish Notice to Unknown Creditors
If any creditors are unknown, you must publish a general notice. Md. Code Ann., Est. & Trusts § 7-103 (link) mandates that you publish once a week for three consecutive weeks in a newspaper of general circulation where the probate is filed. This alerts creditors you may not have identified.
4. Receive and Review Claims
Creditors typically have three months from the first date of publication—or four months from your appointment date for known creditors—to submit claims. When a claim arrives:
- Log it in your claim register
- Compare the claim to the deceased’s records
- Decide whether to allow, partially allow or disallow the claim
5. Dispute or Allow Claims
If you dispute a creditor’s claim, draft a formal notice of disallowance and send it by certified mail. Creditors can petition the Orphans’ Court to enforce their claim. If you allow the claim, schedule it for payment.
6. Pay Valid Claims and Administration Expenses
Before distributing inheritances, pay:
- Funeral expenses
- Estate administration costs
- Allowed creditor claims
Follow the priority rules in Md. Code Ann., Est. & Trusts § 7-402.
7. File Final Account and Close Estate
Once all debts and expenses are paid, prepare a final accounting for the Orphans’ Court. Upon court approval, obtain a discharge, distribute remaining assets and officially close the estate.
Helpful Hints
- Track deadlines in a calendar to avoid missed claim periods.
- Keep copies of all mailed notices and certified mail receipts.
- Maintain organized ledgers for claims allowed and disallowed.
- Notify potential heirs and beneficiaries early to manage expectations.
- Consult an Orphans’ Court guide for local filing requirements.