Modified administration is a streamline process available for some estates depending on the nature of the assets and the beneficiaries of the estate. The streamline process eliminates the necessity of filing an inventory and instead allows you to file a final a report that reflects the assets of the estate as of the date of death, the expenses and debts that have been paid, and the distribution of the assets. If you would like to know more about modified administrations and their role in Maryland probate cases, speak with a Maryland probate lawyer.
When a Modified Administration Can Be Used in MD
Modified administration is available only in certain estates and its availability is dependent on the relationship of the beneficiaries of the estate to the decedent. It is also heavily dependent on whether all beneficiaries are exempt from inheritance tax. An inheritance tax is the tax on the right to receive distribution from an estate. The inheritance tax in the state of Maryland is generally 10% or 11.1% depending on the type of distribution being received and the terms of the decedent’s last will and testament.
Modified administration needs to be considered on a case-by-case basis and it is best to consult with a Maryland probate attorney who can advise you on whether a modified administration is applicable or available to your estate administration before you proceed.
Role of Personal Representative
A personal representative in Maryland essentially has the same duties under a modified administration as they would on a regular administration which generally include marshaling all of the assets and paying any of the legally enforceable debts. Also, they need to file tax returns, income and estate tax returns as required. Finally, they oversee the distribution of all of the assets pursuant to either to laws of intestacy or the terms of the last will and testament.
The election for modified administration is an election made by the personal representative. However, the beneficiaries of the estate must also consent to modified administration. Generally, it is due no later than three months after the date of appointment of the personal representative.
Final Report Under Modified Administration
A final report under modified administration reflects the date of death value of the probate assets, all of the expenses or debts that have been paid and the distributions pursuant to either the laws of intestacy or to the terms of the decedent’s last will and testament. Generally, the final report is due nine months after the date of appointment of the personal representative.
Revoking a Modified Administration in Maryland
A modified administration can be revoked for a number of reasons. It can be revoked if an estate is unable to meet the final report deadline. Instances like a failure to meet a deadline can occur in complex estates either due to litigation issues or due to complicated assets that require a longer period of time to be valued.
It can also be revoked at the request of the personal representative for a number of reasons depending on the facts of the case. In the event that the modified administration is revoked, the estate will go back to a regular administration and an inventory and accounting would be required to be filed.