If a person who lived outside Maryland dies while owning real estate or personal property in Maryland, their estate may need to go through a process called ancillary probate. This process allows a foreign personal representative (an executor or administrator appointed in another state) to manage or transfer estate property located in Maryland.
Topics on this Page:
- What is Ancillary Probate?
- Who Is a Foreign Personal Representative?
- How Does Ancillary Probate Work in Maryland?
- Do inheritance and estate taxes apply in ancillary probate?
What Is Ancillary Probate?
Probate is the legal process of settling a deceased person’s estate. Settling an estate includes paying debts, collecting assets, and distributing property. Normally, probate is opened in the state where the decedent lived at the time of death.
When a decedent dies in one state but owns property in another, a separate proceeding, called ancillary probate, may be required. Ancillary probate is required in Maryland when a decedent dies in another state and:
- The decedent owned real estate located in Maryland, or
- The decedent owned tangible personal property (such as vehicles, boats, or equipment) located in Maryland.
The fiduciary in an ancillary probate proceeding is known as a “foreign personal representative.” Other states may call the fiduciary “executor.”
Who Is a Foreign Personal Representative?
A foreign personal representative is the person appointed as personal representative by a probate court outside Maryland (usually the decedent’s home state) to administer an estate. Maryland law allows that person to apply for authority to act within Maryland.
Once recognized, the foreign personal representative can:
- Transfer title to Maryland real estate.
- Collect debts owed in Maryland.
- Manage or sell Maryland-based assets.
Read the Law: Md. Code, Estates & Trusts § 5-502, § 5-503, § 5-504
How Does Ancillary Probate Work in Maryland?
The process generally involves these steps:
- Filing with the Register of Wills
- The foreign personal representative must file an Application by Foreign Personal Representative to Set Inheritance Tax with the Maryland Register of Wills. .
- The application should be filed in the jurisdiction where the largest part (in value) of the property is located.
- For example, if the out-of-state decedent owned real property in Baltimore City with a value of $500,000 and real property in Baltimore County with a value of $250,000, the proper venue for this proceeding would be Baltimore City, where the larger valued is located.
- The foreign personal representative must include copies of the following with their application:
- A certified copy of the personal representative’s appointment (and the will, if there is one), from the court in the state where the estate was opened.
- The name and address of a Maryland resident who will act as the local contact (resident agent) for the estate.
- A list of the people who will receive Maryland property, including what share they are entitled to and how they are related to the person who died.
- A notice to creditors that the foreign personal representative has been appointed, covering the decedent’s real estate or leasehold property located in Maryland.
- An appraisal, or other documentation, showing how the Maryland real estate, leasehold property, or taxable personal property (such as vehicles or equipment) has been valued.
- Publication of Notice to Creditors
- After filing, the foreign personal representative must arrange for publication of a notice to creditors. The publication must occur once a week for 3 weeks, in a newspaper of general circulation in each county where the decedent owned Maryland property.
- This notice alerts Maryland creditors of the decedent that they may file claims against the estate within the time allowed by law.
- Recognition of Authority in Maryland
- Once the filing and publication requirements are met, the foreign personal representative is recognized under Maryland law and may exercise their authority in the state.
- The Orphans’ Court may become involved if there are disputes or issues that require judicial action.
- Managing Maryland Assets
- Once authorized by the Court , the representative can transfer or sell Maryland real estate, pay Maryland creditors if necessary, and distribute Maryland-based property in accordance with the decedent’s will and Maryland law.
Read the Law: Md. Code, Estates & Trusts § 5-503, § 5-504
Do inheritance and estate taxes apply in ancillary probate?
Maryland inheritance and estate taxes may apply to property located in Maryland, even if the decedent lived elsewhere. Because ancillary probate involves both Maryland law and the laws of another state, families often benefit from consulting an attorney.
Read the Law: Md. Code, Tax – General Article, Title 7, Subtitle 2 (Maryland Inheritance Tax), Md. Code, Tax – General Article, Title 7, Subtitle 3 (Maryland Estate Tax)