Legal Question in Wills and Trusts in Maryland
Did Register of Wills err in considering a beneficiary's benefit as probate property and in requiring me to secure a bond on it? My aunt died 1998 and dad died 2009. 3 yrs. after dad's death I get large check from Ins. Co. payable to "the Estate of Steve... Register's office has me reopen closed estate and list's the check as probate property. Dad never OWNED this as tangible/intangible property "at date of death". My aunt "designated" dad to receive as beneficiary. The "WILL" expressly excuses the necessity for giving bond. It was 3 yrs. and 5 days after dad died that I was initially contacted by this Ins. Co. Too late for creditors. SOL has run out.I plan to time bar creditor's claims. Did ROW goof? That bond wasn't cheap. As executor I've followed their instructions, but I still think they goofed. I'm the only legatee mentioned in will. I'm about to pay final income/estate taxes. I'm prepared to let ROW know they goofed if they were wrong. Remember, dad never surrendered or OWNED this asset as sole owner at the "time of his death";or any time for that matter. And as far as the will is concerned, it's in their possession and listed on the case docket; it says no bond required! What do you think? Thanks so much!
1 Answer from Attorneys
When a will excuses the need to post bond, the PR should not need to obtain full bonding. Instead, the PR obtains a nominal bond (required for every regular estate). This is usually bond to cover several thousand dollars but not the full estate value. In many cases nominal bond can be secured from a fiduciary bonding company for a modest premium ($200 or less) to cover $17,000 - $25,000, which is generally all the ROW is concerned about. This is not a full bond amount for the full estate, but what they mandate to make sure there is sufficient bonding to cover taxes & probate fees. Note that the bonding company may set premiums higher in certain situations but in my experience with a sole beneficiary situation and solvent estate, the companies my firm uses charge less than 1/10th of 1% for the nominal PR bond.
Though usually probate is anything titled in the decedents name at his/her death, if the money went into the estate, it would be an estate asset. Because it goes into the estate, it must pass through the estate.
While the above is not legal advice on the specifics of your situation, I hope that the general information helps.
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