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In an earlier post we talked about the responsibilities of a Personal Representative. We mentioned a long list of things the Personal Representative may be tasked with handling, and in this post we’ll tell you about a few more: reports that must be filed.
The Personal Representative must file the Information Report (Form 1124) within three months after appointment, the personal representative is required to prepare and file an Information Report.
The assets reported on this form include assets that the decedent held a less than absolute or whole interest at date of death and assets that had a previously designated beneficiary.
It’s important to note that these assets don’t follow the terms of the will or the laws of intestacy in Maryland. It’s understandable if you’re confused here – but remember, probate assets are only assets held in the name of decedent alone or as tenants in common. Any other assets are not subject to the laws of intestacy in Maryland.
However, that doesn’t mean that the Personal Representative doesn’t have to disclose some information about these assets during the probate proceeding. You probably guessed why: taxes.
Any of the following types of assets passing to any persons or entities other than those exempt from inheritance tax pursuant to §7- 203 of the Tax – General Article must be reported. They include:
(1) Jointly held assets;
(2) Transfer of any material part of the decedent’s property in the nature of a final disposition or distribution, including any transfer that resulted in joint ownership of property within two years before death;
(3) Any interest less than absolute in real or personal property over which the decedent retained dominion while alive;
(4) Payable on death (P.O.D.) or transfer on death (T.O.D.) accounts;
(5) Any interest in an annuity or other public or private employee pension or benefit plan;
(6) Any interest in real or personal property for life or for a term of years;
(7) Any other interest in real or personal property less than absolute, in trust or otherwise; and
(8) Real or leasehold property located outside of Maryland either in the decedent’s name only or as tenants in common, are reported for informational purposes only.
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