Legal Question in Wills and Trusts in Maryland
My father recently passed and he had no will. There is a small amount of money in his account and he had few assets of any value. He does have several debts including medical, credit cards and the IRS. What we need to know is can we access his money without penalty? Will all of his assets go towards paying his debts? We have been advised to withdraw his funds, unload his property and walk away from the situation. Is that something we should consider or does that leave us vulnerable?
Thank you
1 Answer from Attorneys
Assuming the property was titled in his name when he died, you cannot and should not take any assets without opening an estate and handling the funds as estate funds. (If the accounts were titled jointly or otherwise pass outside of the estate it is a different matter).
The first step is to open up an estate. Once an estate is opened, the personal representative will need to follow a certain priority list to pay claims. For instance, funeral bills get paid before certain other creditors, medical expenses of his last illness go before credit cards and so forth. After all valid claims are paid, then the intestate laws specify how remaining funds (if any) are allocated among surviving family members.
It may be a good idea to have an attorney help with the estate, but if you chose to do this yourself note that Maryland does have a streamlined process for small estates which involves less paperwork and administrative hassle.