When a loved one passes away, one of the first tasks for the executor is to inventory financial accounts for Maryland probate. This process is important because it lays the foundation for settling the estate. Without a complete inventory, the probate court cannot approve the distribution of assets. Let's walk through exactly how to do this.

What counts as a financial account for Maryland probate?

In Maryland probate, financial accounts include bank accounts, investment accounts, retirement accounts, brokerage accounts, and any other accounts that hold cash or securities. It also includes accounts held jointly with the deceased or payable-on-death (POD) designations. Even if an account has a beneficiary, you typically still need to list it in the inventory, though it may not go through probate if properly designated. The key is to identify every account the deceased owned or had an interest in.

What documents do I need to gather?

Start with the deceased's recent bank statements, tax returns, and any financial correspondence. You'll also want to look for checkbooks, passbooks, and online account summaries. If the person worked with a financial advisor, contact them for a list of accounts. For retirement accounts like IRAs or 401(k)s, request statements from the plan administrator. Having all this paperwork in one place makes the inventory process much smoother. You can use an estate asset inventory template for attorneys to keep everything organized.

How do I determine the value of each account?

For cash accounts, the value is the balance as of the date of death. For investment accounts, you need the market value on that same date. Most banks and brokerages can provide a statement or letter with the exact value on the date of death. If you're using online statements, look for the "as of" date. For retirement accounts, use the account balance on the date of death, but note that some may have special tax rules. The Maryland probate court expects accurate valuations. For guidance on this, see the Maryland estate asset valuation guidelines for executors.

What about accounts with beneficiaries or joint owners?

Maryland law treats these accounts differently. If an account is jointly owned with rights of survivorship, it passes directly to the surviving owner and may not be part of the probate estate. Similarly, accounts with a designated beneficiary (like a POD account) pass to that beneficiary outside of probate. However, you still need to list them on the inventory and note how they pass. The court uses this information to understand the full picture of the estate. If you're unsure, consult with a probate attorney or refer to inventory financial accounts for Maryland probate for more details.

What are common mistakes when inventorying financial accounts?

  • Missing accounts: Overlooking small accounts like savings bonds or credit union shares. Check old addresses and safe deposit boxes.
  • Using wrong valuation date: Using the date you accessed the account instead of the date of death. This can throw off the inventory.
  • Not accounting for interest or dividends: Some accounts accrue interest or pay dividends after death. These need to be included if they are part of the estate.
  • Forgetting digital accounts: Online payment systems like PayPal or Venmo count as financial accounts. Include them.

How do I handle personal property and other assets in the same inventory?

Financial accounts are just one part of the overall estate inventory. You'll also need to list real estate, vehicles, and personal belongings. For real estate, the value is typically based on fair market value at death. You can find more on that in the real estate fair market value determination for Maryland estate inventory. For personal property like jewelry or antiques, consider a personal property appraisal for estate settlement to get accurate values.

What are the next steps after inventorying the accounts?

Once you have a list of all financial accounts with their values, you need to compile them into the official probate inventory form (Form #0787). File this with the Maryland Register of Wills in the county where the deceased lived. You typically need to file within 90 days of being appointed personal representative. After filing, you can proceed to pay debts, taxes, and distribute the remaining assets. Keep copies of all documents and statements you used to support the values.

Practical tip: Start gathering statements and account information as soon as you're appointed. The sooner you have a complete picture, the fewer surprises later. Use a checklist to track each account, its value, and how it transfers. This will make filing the inventory straightforward.