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Maryland Personal Representative Bond
Estate administration – also known as “probate” – is the legal process of collecting the assets and property of someone who has passed away, paying off debts, and distributing those assets to the heirs. The Register of Will’s office in the decedent’s county appoints a personal representative to handle these tasks for the estate.
Maryland Estates and Trusts Code 6-102 requires most personal representatives to post a surety bond before being appointed. This bond financially protects the estate's beneficiaries and creditors, ensuring that the personal representative fulfills their duties responsibly and according to law.
Have any questions? Give us a call at (855) 470-0877 and speak to a live Maryland probate bond expert.
What is the Required Bond Amount?
Maryland Estates and Trusts Code 6-102e states the bond amount should be no greater than the maximum value of the estate’s personal property. The Register of Wills may reduce the bond amount by any collateral posted with the Register or if the personal representative deposits estate funds in a restricted account. The Register of Wills overseeing the case will set the required bond amount during the appointment process.
Even if the bond requirement is excused or waived, the Register still requires a nominal probate bond for all estates to cover the value of any debts or inheritance taxes payable by the personal representative.
How Much Does a Maryland Personal Representative Bond Cost?
The Maryland Personal Representative Bond costs a minimum of $85 per year. Apply online in minutes or call one of our probate bond experts at (855) 470-0877 to find out exactly how much your bond will cost.
To determine how much the bond will cost, personal representatives can follow the steps listed below:
- Determine the Required Bond Amount
The Register of Wills sets the bond amount based on the maximum value of the estate’s personal property minus any deposits with the Register of Wills. If the bond amount is waived or excused, the personal representative must obtain a nominal probate bond.
- Calculate the Total Cost
Jet Surety charges $85 per year for all personal representative bonds up to $11,000 in size. For each additional $1,000 increase in the bond amount, the bond premium will increase by the corresponding amount outlined in the table below. See the chart below to calculate the price for larger bonds.
| Bond Amount | Additional Premium (per $1,000) | Bond Cost (1 year) |
|---|---|---|
| $0 - $11,000 | $85 flat rate | $85 |
| $11,001 - $50,000 | $5.00 | $85 - $250 |
| $50,001 - $200,000 | $3.75 | $250 - $813 |
| $200,001 - $500,000 | $2.50 | $813 - $1,563 |
| $500,001 - $1,000,000 | $1.00 | $1,563 - $2,063 |
| $1,000,000+ | $0.50 | $2,063+ |
Jet does not require credit checks for applicants with bond sizes under $25,000 or under $50,000 if the applicant has retained an attorney. Maryland Estates and Trusts Code 6-102g allows personal representatives to charge the bond premium as an estate expense.
Call us at (855) 470-0877 for an estimate of how much your probate bond will cost.
What is the Process of Becoming a Personal Representative in Maryland?
Step 1 – Hire an Attorney
Although not explicitly required, it is highly recommended that personal representatives hire an attorney to assist with probating a small estate.
Step 2 – Determine Priority
The Register of Wills requires the following items to be completed before applying to become a personal representative:
- Petition for Probate
- Signed consent waivers from the other estate heirs
- Appointment of Resident Agent if the applicant is out-of-state
- Copy of death certificate and paid funeral bill
- Decedent’s last will and testament (if applicable)
If the estate has assets valued under $50,000, the personal representative must complete Schedules B and C of the petition. If valued over $50,000, they must complete Schedule A. Applicants can find all the necessary forms online through the Register of Wills’ website here.
Step 3 – Contact the Register of Wills
Anyone seeking to apply for administration of an estate must contact the Register of Wills in the county where the decedent resided or owned property. A register will walk the personal representative through the appointment process, provide them with all required forms, and answer any questions they may have. Scroll to the bottom of this page for the list of county Register of Wills’ offices and their contact information.
Step 4 – Purchase a Surety Bond
Unless otherwise exempt, personal representatives must purchase and maintain a surety bond (exemptions outlined below).
What is the Purpose of a Maryland Personal Representative Bond?
Personal representatives are responsible for the management, preservation, and distribution of the deceased person’s estate. Maryland Estates and Trusts Code 6-102 requires fiduciaries to post a probate surety bond to ensure that the estate assets are managed in accordance with estate regulations and Maryland law. If the fiduciary fails to fulfill their duties, the surety bond is a financial guarantee for any damaged interested party of the estate, such as an heir or creditor.
Even if the court waives the standard bond requirement, the personal representative must obtain a nominal probate bond to ensure they satisfy all debts and tax obligations of the estate.
What are the Responsibilities of a Personal Representative in Maryland?
Personal representatives in Maryland have several key responsibilities in managing the probate process and settling the deceased person's estate. The primary duties are outlined in Title 6 of Maryland’s Estate Code and include the following:
- Gather and Inventory Assets: The personal representative must identify and collect all estate assets once appointed, including any bank or investment accounts, personal belongings, motor vehicles, etc. Personal representatives must file an inventory of these assets within three months of appointment and include each item's fair market value.
- Notify Creditors and Pay Debts: Personal representatives must notify all creditors of the deceased person's passing and give opportunity to submit a creditor’s claim to the Register of Wills. If the claim is valid, the personal representative must pay it from estate funds before distributing any assets to heirs.
- File Tax Returns: The personal representative must pay all required inheritance taxes for the deceased individual and the estate. Inheritance taxes are due before distributing any assets to heirs, and you can find an in-depth guide on what property is taxable in Maryland’s Administration of Estates Booklet.
- Distribute Assets to Beneficiaries or Heirs: After settling all debts, taxes, and expenses, the personal representative must distribute the remaining assets to the beneficiaries or heirs following the will's provisions or the laws for intestate estates under Maryland law.
- Provide Accounting: The personal representative must thoroughly document all financial transactions made on behalf of the estate. Within nine months of appointment, the fiduciary must file an accounting report that comprehensively summarizes the estate's income, expenses, distributions, and all other financial activities. The Register of Wills can provide examples of accounting reports to aid in your filing.
How is the Estate Distributed if There's No Will?
If the deceased person did not leave behind a will, the personal representative must distribute assets according to intestate succession. We’ve researched how estate assets flow in these cases and provided a general overview of the distribution order below.
If the decedent is survived by:
- A spouse but no children: The spouse inherits everything
- Children but no spouse: The children inherit everything in equal parts
- A spouse and children who are minors: The spouse inherits one half, and the children inherit the remainder
- No children or spouse, surviving parents only: The parents receive the entire estate
- No children, spouse or parents; surviving siblings only: The siblings divide the net estate equally
- No living heirs: The entire net estate passes to the county Board of Education
Intestate succession is another example of why an effective estate plan is essential to control who receives property when one passes. We are not licensed attorneys, so we recommend consulting with a licensed estate or probate attorney when managing an estate.
When is a Bond Not Required in Maryland?
According to Maryland Estates and Trusts Code 6-102, the Register of Wills may waive the surety bond requirement for personal representatives in the following situations:
- If the will explicitly waives the bond requirement
- If all interested persons waive the bond by signing a Waiver of Bond
- If the estate value does not exceed $10,000 after payments of allowances and debts
- The personal representative is a state agency, bank, or trust company
If the court waives the standard bond requirement, the personal representative must still post a nominal probate bond to guarantee they will pay all estate debts and taxes.
How Does the Application Process Work with Jet?
Jet’s application process is simple and fast - we aim to get the personal representative bonded as quickly as possible so they can focus on their obligations. All we need is the bond amount and basic information about the estate.
Once completed and submitted, you will receive your purchase price immediately, or a Jet underwriter will reach out for more information. Some of the factors Jet considers when underwriting these types of bonds:
- If the applicant has ever committed a felony
- If there are disputes among the estate’s beneficiaries
- If the applicant has an attorney assisting with the estate
- Applicant’s credit history for bond limits over $25,000 if they have not retained an attorney, or $50,000 if they have retained an attorney
Applicants for bond limits over $50,000 must submit documentation from the court for review, such as a petition for appointment and the order from the court requiring the bond. If you have any questions about applying, please call our probate underwriters at (855) 470-0877.
How Do You File a Personal Representative Bond with the Register of Wills?
Jet (the Surety) and the personal representative must sign the original bond. Jet fills out the bond form, signs as the Surety, and sends the original bond to the representative to sign and file the completed bond with the Register of Wills. Jet will also send the representative an electronic copy of their bond for reference.
Important Terms to Know in Maryland Probate
- Administration of an Estate: The management of a decedent’s assets, which includes collecting their property, paying all expenses and debts, and distributing net assets to the heirs.
- Beneficiary: An individual who is legally entitled to a certain portion of a decedent’s estate, also known as an heir.
- Decedent: The individual who has passed away and left the estate.
- Executor: A person nominated in the deceased individual’s will to administer their estate.
- Fiduciary: A person in control of or with influence over another’s property. In this case, it refers to both executors and administrators.
- Inheritance Tax: A tax imposed on the property passed down to an heir of an estate.
- Intestate: If the decedent dies without a will, the estate is considered Intestate.
- Judicial Probate: A probate proceeding in Maryland’s Orphans’ Court when the validity of a will is disputed, the will is damaged, or more than one person applies for personal representative.
- Personal Representative: This is a catch-all term in Maryland for the person in charge of settling the estate. The definition includes any executor named in a will.
- Probate: The legal process through which the representative of a deceased person’s estate distributes all assets and pays all debts owed.
- Regular Estate: the estate procedure for a decedent who owned probate assets with a gross value in excess of $50,000 (or $100,000 if the sole heir or legatee is the surviving spouse).
- Small Estate: an estate with a gross value of $50,000 or less (or under $100,000 if the sole heir or legatee is the surviving spouse).
- Surety Bond: A type of insurance required for Maryland executors and administrators that guarantees they will faithfully fulfill their duties to settle the estate.
- Testate: If the decedent dies with a will and the executor is named in the will, the estate is considered Testate.
How Do You Renew the Maryland Personal Representative Bond?
Jet will notify the personal representative well before the renewal date to ensure timely payment. Jet will inform the attorney (when applicable) and the Register of Wills if payment is not made. If the renewal remains unpaid, the Register will set a hearing upon being notified of failing to maintain the bond.
How Long Do You Need the Maryland Personal Representative Bond?
The Register of Wills can release the bond once the personal representative has paid all debts, distributed all assets, and provided an approved final accounting. Once the estate is settled, the personal representative simply needs to email documentation to [email protected] so that we can cancel the bond and issue any applicable refund due back to the personal representative. All premiums paid after the first year are subject to a prorated refund for the unused term.
What Actions of a Personal Representative Can Lead to Surety Bond Claims?
Personal representatives have a critical role in settling an estate, and any unethical action could financially damage the estate’s heirs, creditors, or the State of Maryland. Anyone appointed as a personal representative must adhere to all estate regulations and ensure they fulfill all responsibilities outlined in Title 6 of Maryland’s Estate Code.
Some examples of potential actions that could cause a claim:
- Committing negligence, embezzlement, or fraud
- Buying or selling any part of the estate without authorization
- Misusing or misappropriation of estate assets, such as mixing estate and personal funds
- Failing to distribute estate assets to its legal beneficiaries
- Nonpayment of any estate taxes and debts
An heir or creditor to the estate with proven financial damages caused by the personal representative may file a claim against their bond. To avoid a bond claim, we highly recommend that personal representatives retain the services of an attorney to assist in managing the case.
What Happens if a Claim Is Filed on the Probate Bond?
Upon receiving notice of a claim on the bond, Jet has 30 days to pay the claim or ask for additional time to review it. Jet works tirelessly to protect our clients against faulty claims, so even if the Register of Wills requests a bond payout, we assess all documentation provided before paying out the claim. However, if a claim is valid and Jet pays the claimant, the personal representative must pay Jet back as the representative is ultimately liable for their own actions.
Register of Wills Locations in Maryland
Below is a list of all the Register of Wills' offices located in the State of Maryland, as well as their addresses and contact information.
