Losing someone you love often brings questions about what happens to their belongings. In Maryland, some assets go through a court process called probate, while others can transfer automatically. Knowing the basic rules may help you plan ahead and make things easier for your family.
Assets that may go through probate
According to Maryland law, assets usually need probate if they are only in the deceased person’s name and do not have a clear plan for who gets them next:
- Real estate: If a house or land is only in the person’s name, probate may be needed to change ownership. Maryland law now allows a transfer-on-death deed or a life estate deed, which can sometimes avoid probate.
- Bank accounts: Accounts held by one person without a payable-on-death beneficiary may require court involvement. Maryland has a simplified small estate process if the total value is under $50,000 or $100,000 when everything passes to a surviving spouse.
- Personal property: Items like jewelry, art or collectibles usually go through probate unless they are in a trust.
- Vehicles: Cars and other vehicles may need probate, although naming a beneficiary on the title through the Maryland MVA can simplify things.
Using trusts or designating beneficiaries may help your heirs skip the court process and get assets more quickly.
Assets that often transfer automatically
Some property can move to the new owner without going through probate, which is faster and less formal.
- Joint accounts: If an account is shared and has rights of survivorship, the surviving owner usually becomes the sole owner right away.
- Trusts: Assets in a living trust pass to the people named in the trust according to the trustee’s instructions.
- Named beneficiaries: Life insurance, retirement accounts and accounts with payable-on-death or transfer-on-death designations generally go directly to the person listed.
Using joint ownership or naming beneficiaries can help these assets move smoothly without court delays.
Simple steps to ease the process
Taking a few steps now may reduce stress for your loved ones later. Reviewing and updating beneficiary designations on accounts and insurance, adding a beneficiary to your vehicle title and exploring a Transfer-on-Death deed or a trust can all help avoid probate.
Planning ahead
Knowing which assets are likely to go through probate can make estate planning more manageable. Organizing accounts and reviewing property titles may help your estate reflect your wishes while limiting delays. Careful preparation may reduce administrative work and make things easier for those you leave behind.
