ADMINISTRATION ACCOUNT – An accounting of all financial activity of a Probate Estate beginning with Assets Inventoried as of date of death, adjusting for Actual Sale Values, Income received, Expenses of Administration, Disbursements and Distributions to Heirs.

ADMINISTRATION ACCOUNT DELINQUENCY NOTICE – A Notice issued by the Register of Wills to either remind the Personal Representative and/or attorney that an Administration Account is soon due or, a Notice that an Administration Account is past due.  Note that some Counties send Reminder Notices and others send Delinquency Notices.  A delinquency Notice generally includes or is followed by a Show Cause Order to Remove the Personal Representative.

ADMINISTRATION ACCOUNT REMINDER NOTICE – A Notice issued by the Register of Wills to either remind the Personal Representative and/or attorney that an Administration Account is soon due or, a Notice that an Administration Account is past due.  Note that some Counties send Reminder Notices and others send Delinquency Notices.  A delinquency Notice generally includes or is followed by a Show Cause Order to Remove the Personal Representative.

ACTUAL SALE VALUE – The value an Estate Asset was actually sold for, which may differ from the value it was Inventoried for.  An adjustment is taken on the Administration Account to take a gain or loss to the Estate if an asset, such as Real Property, a Vehicle or other Tangible Personal Property, if the asset is sold for more or less than the value on the Inventory.

ADMINISTRATIVE PROBATE – A Court hearing to determine or appoint a Personal Representative of the Estate, to settle a Will Caveat (Contest) or other matter related to Probate.

AUDIT MEMORANDUM – A Notice issued by the Register of Wills requesting additional information, clarification of information, or proof of information as it related to any Court filing during the Probate process.

BENEFICIARY – An individual, or an entity such as a charity, named to inherit an account, policy, or property and/or one who is named in a Last Will and Testament (Will) to inherit under the Will.  Retirement Accounts and Insurance (such as Life Insurance and/or Annuities) generally have a Beneficiary Designation.  Bank Accounts may have a Payable On Death (POD) Designation.  Brokerage Accounts and/or Investments may have a Transfer On Death (TOD) Designation.  The Motor Vehicle Administration (MVA) in Maryland allows for a Beneficiary Designation of Vehicles and/or Titles of other property registered through MVA.  Real Property, via a Life Estate Deed, may name a Beneficiary or Beneficiaries known as Remaindermen.

BENEFICIARY DESIGNATION – The process and/or forms to name a Beneficiary on Retirement Plans, Life Insurance, Annuities and/or Vehicles.

BEQUEST – A specific gift of cash, property and/or Tangible Personal Property to a named Beneficiary under one’s Last Will and Testament.  Bequests generally take priority over Distribution of the Residuary Estate.

CAVEAT PROCEEDINGS – To challenge or Contest a Last Will and Testament (Will) before the Court.  The Caveat may be to introduce a Will if the Personal Representative filed the Estate without a Will (Intestate), to claim a more recent Will than the one filed exists and should be Probated, to claim the Decedent was not competent when the purported Will was signed, to claim a Will is false or some other reason.

CERTIFICATE OF DOMESTIC PARTNERSHIP – In order to be treated similar to a spouse in a Probate matter, Domestic Partners must Register their Domestic Partnership with the Register of Wills in their County of Domicile.  The Register of Will then issues a Certificate of Domestic Partnership.  There are numerous benefits to doing so.  In an Intestacy (no Will), the Spouse generally inherits and also enjoys Priority of Appointment as Personal Representative of the Estate.  In addition, an inheritance to a Spouse is not subject to the 10% Inheritance Tax whereas an inheritance by a non-registered Domestic Partner is subject to the tax.

CLAIM AGAINST ESTATE – Generally, unsecured creditors of a Decedent must file a formal Claim Against the Estate in order to be paid a debt.  The Claim must be filed with the Register of Wills and served upon the Personal Representative and/or the attorney for the Estate.  Creditors generally have 6 months from date of death to file their Claim, albeit there are exceptions to this general Statute of Limitations.  If a Claim is believed to be incorrect or is made after the Statute of Limitations, a Notice of Disallowance may be filed.  The Creditor then has 60 days to substantiate their Claim or it is disallowed.

CO-PERSONAL REPRESENTATIVE – A Personal Representative is the individual (or individuals) who are appointed by the Court to have the legal responsibility to Probate an Estate.  An Estate may have more than one Personal Representative.  In this instance the Personal Representatives are known as Co-Personal Representatives.  Appointing Co-Personal Representatives can become quite inconvenient as they are required to do everything together.

CREDITOR – An entity, or individual, to which a debt is owed by the Decedent of the Estate.  Secured Creditors have collateral for the debt owed, such as a mortgage or auto loan.  Unsecured Creditors do not have collateral and tend to be credit cards, personal loans, health care professionals/facilities or other individuals. 

CUSTODIAL ACCOUNT - If a minor child inherits, the inheritance must be held in a Custodial Account like a Universal Transfer to Minors Account (UTMA).

CUSTODIAN – A Custodian has custody of assets.  They may be the financial institution that holds a retirement plan or they may be an individual who holds and controls assets for another individual.  If a minor child inherits, the inheritance must be held in either a Guardianship or in Custodial Account like a Universal Transfer to Minors Account (UTMA).

DEATH CERTIFICATE - In Maryland, the Maryland Department of Health's Division of Vital Records is the primary agency that issues certified copies of death certificates for individuals who died in the state. For deaths that occurred prior to 2012, you may need to contact the Maryland State Archives.  Death Certificates are considered official proof of death and contain much additional information such as cause of death, location of death, time of death and some other personal information about the deceased

DEBTS OF THE DECEDENT - A debt owed by the Decedent of the Estate.  Secured Creditors have collateral for the debt owed, such as a mortgage or auto loan.  Unsecured Creditors do not have collateral and tend to be credit cards, personal loans, health care professionals/facilities or other individuals.

DECEDENT – The person who has died.

DECLARATION OF DOMESTIC PARTNERSHIP  - In order to be treated similar to a spouse in a Probate matter, Domestic Partners must Register their Domestic Partnership with the Register of Wills in their County of Domicile.  The Register of Will then issues a Certificate of Domestic Partnership.  There are numerous benefits to doing so.  In an Intestacy (no Will), the Spouse generally inherits and also enjoys Priority of Appointment as Personal Representative of the Estate.  In addition, an inheritance to a Spouse is not subject to the 10% Inheritance Tax whereas an inheritance by a non-registered Domestic Partner is subject to the tax.

DEED OF DISTRIBUTION – A property deed executed to transfer Real Property, such as a home, from an Estate to an Heir of the Estate as a Distribution-In-Kind.

DISTRIBUTION-IN-KIND – When an Heir of an Estate inherits property of the Estate rather than cash proceeds from the sale of the property.  A Distribution-In-Kind may be in the form of a vehicle, a home or an investment or investment account.

DOMESTIC PARTNERSHIP – In order to be treated similar to a spouse in a Probate matter, Domestic Partners must Register their Domestic Partnership with the Register of Wills in their County of Domicile.  The Register of Will then issues a Certificate of Domestic Partnership.  There are numerous benefits to doing so.  In an Intestacy (no Will), the Spouse generally inherits and also enjoys Priority of Appointment as Personal Representative of the Estate.  In addition, an inheritance to a Spouse is not subject to the 10% Inheritance Tax whereas an inheritance by a non-registered Domestic Partner is subject to the tax.

DOMICILE – The County of Domicile is the County where the Decedent resided when they died.  AN Estate is generally Probated in the Decedent’s County of Domicile.

ESTATE – All that property (assets and liabilities), be it Real Property, Tangible Personal Property, a Business and its assets/liabilities or Financial Property of a Decedent.

ESTATE ADMINISTRATION - Estate Administration, often referred to as Probate, is the legal process of managing a deceased person's assets and debts after their death. This involves gathering the deceased's assets, paying outstanding debts and taxes, and distributing the remaining assets to the beneficiaries. It essentially involves settling the financial affairs of the deceased.

ESTATE ASSET – Any property, including Real Property, Tangible Personal Property, Financial Property, Investment, Business, etc. where there is NO Joint Owner or Beneficiary effectively named is generally an Asset of the Probate Estate.

ESTATE BANK ACCOUNT – The Personal Representative of an Estate is required to open an Estate Bank Account in the name of the Estate and under the Estate’s IRS EIN Number.  It is best practice to do all financial transactions for the Estate in and out of this account.

ESTATE INCOME TAX RETURN – Depending on the amount income earned during the Probate process (from date of death to closing and distribution of the Estate), the Personal Representative may be required to file income tax returns for the Estate.  The Federal Estate Income Tax Return is Form 1041.  The Maryland Estate Income Tax Return is Form 504.  

ESTATE PLANNING ATTORNEY – An attorney who specializes in preparing Wills, Trusts, Powers of Attorney and other Estate Planning Documents.  Estate Planning Attorneys tend to have expertise in tax planning, business planning, marital agreements and other related areas.

ESTATE TAX - Estate Tax is a tax paid by an Estate that is over certain asset thresholds.  Thus, only very large Estates are subject to an Estate Tax.  There is a Federal Estate Tax and a Marland Estate Tax.  Not every state has an Estate Tax.  There is also a Maryland Inheritance Tax, which is very different that the Maryland Estate Tax.  It is more common for an Estate to be subject to the Maryland Inheritance Tax.  

ESTATES AND TRUSTS ATTORNEY – An attorney who specializes in Estate Planning, Estate Administration (Probate), related tax matters and sometimes certain areas of Elder Law such as Medicaid Planning.

EXECUTOR - In Maryland we refer to this person as Personal Representative.  When one Petitions the Court to open Probate and be appointed Personal Representative, the Court issues Letters of Administration naming that person as the administrator of the Estate.  Letters of Administration are proof of one’s Court-Appointed authority to conduct all of the responsibilities of Probate.  While this is not a perfect comparison, by way of their Letters of Administration, a Personal Representative is like the Power of Attorney over the Estate.

EXECUTRIX - In Maryland we refer to this person as Personal Representative.  When one Petitions the Court to open Probate and be appointed Personal Representative, the Court issues Letters of Administration naming that person as the administrator of the Estate.  Letters of Administration are proof of one’s Court-Appointed authority to conduct all of the responsibilities of Probate.  While this is not a perfect comparison, by way of their Letters of Administration, a Personal Representative is like the Power of Attorney over the Estate.

EXPENSES OF ESTATE ADMINISTRATION – Generally all disbursements on behalf of a Probate Estate related to the cost of administering (Probating) the Estate.  Expenses may include funeral and burial costs, probate fees, the cost of securing a Nominal or Personal Representative Bond, the cost of publishing Notice as required by statute, expenses related to real property or a vehicle until sold or transferred (including mortgage payments, insurance, taxes, HOA fees, maintenance, etc..), postage, fixing up and/or cleaning out real property, paying final bills or debts, preparing and settling final tax returns and more.

FIDUCIARY - The term Fiduciary originates from the Latin word Fiducia, meaning Trust.  A Fiduciary manages the assets and/or property of someone else.  In this case, the Personal Representative has a Fiduciary responsibility to the Estate and must always act in the best interests of the heirs or beneficiaries.  In their role as a Fiduciary, they are charged with protecting and maximizing the value of Estate assets.  It is imperative that the Personal Representative understand their role as a Fiduciary and conduct all business of the estate with prudence.  An experienced Estates & Trusts attorney can assist you with understanding your role as a Fiduciary.

FINAL ADMINISTRATION ACCOUNT - An Administration Account is an accounting of all financial activity of a Probate Estate beginning with Assets Inventoried as of date of death, adjusting for Actual Sale Values, Income received, Expenses of Administration, Disbursements and Distributions to Heirs.  If all business and tasks involved in Probating an Estate have been completed, then the Account is a Final Administration Account.  Upon approval of a Final Administration Account, the Estate is closed.

FIRST AND FINAL ADMINISTRATION ACCOUNT - An Administration Account is an accounting of all financial activity of a Probate Estate beginning with Assets Inventoried as of date of death, adjusting for Actual Sale Values, Income received, Expenses of Administration, Disbursements and Distributions to Heirs.  If all business and tasks involved in Probating an Estate have been completed, then the Account is a Final Administration Account.  Some Estates must fie several Accounts prior to filing a Final Account.  If the First Account will also be the Final Account, it is known as the First and Final Administration Account.  Upon approval of a Final Administration Account, the Estate is closed.

FORM 1041 – IRS Form 1041 is an Internal Revenue Service (IRS) income tax return filed by the Trustee or Personal Representative of a Decedent’s Estate or Trust.  Derived from Section 1041 of the Internal Revenue Code (IRC), Form 1041 is used to declare any taxable income that an Estate or Trust generated after the Decedent passed away and before designated assets were transferred to beneficiaries.  The form is due by the 15th day of the fourth month after the Estate’s or Trust’s tax year ends.

FORM 4506-T - Formally known as "Request for Transcript of Tax Return," is a document used to obtain tax transcripts from the IRS. A tax transcript provides a summary of a taxpayer's tax return information, rather than a full copy of the filed return

FORM 504 - Maryland Form 504 is the Maryland Fiduciary Income Tax Return. It is used by Fiduciaries, such as Trustees or Personal Representatives, to report the income of an Estate or Trust for tax purposes in Maryland.

FORM 706 – IRS Form 706 ensures that estate taxes are adequately assessed for larger estates, while Form 1041 helps report the estate's income during the settlement process

FORM MET-1 - Maryland Form MET-1 is the Maryland Estate Tax Return, used to report and pay estate taxes to the state of Maryland.

FORM SS-4 – Formally known as "Application for Employer Identification Number (EIN)," is used to apply for an Employer Identification Number from the Internal Revenue Service (IRS).

GAIN ON SALE OF ESTATE ASSET - An adjustment is taken on the Administration Account to take a gain (or loss) to the Estate if an asset, such as Real Property, a Vehicle or other Tangible Personal Property, if the asset is sold for more or less than the value reported on the Inventory.

GUARDIAN – Someone appointed by a Court to oversee an individual’s personal affairs, financial affairs, or both.  Generally, in a Probate Estate matter, a Guardianship is necessary due to a minor child inheriting, because minors may not inherit.  One’s parent is NOT automatically their Guardian of the Property for the purposes of overseeing an inheritance.  If an adult is incompetent to handle their affairs, an adult Guardianship may be issued for similar reasons.  Guardianships are complex.  It is advisable to consult an attorney regarding any Guardianship matter.

GUARDIANSHIP – A Guardian is someone appointed by a Court to oversee an individual’s personal affairs, financial affairs, or both.  Generally, in a Probate Estate matter, a Guardianship is necessary due to a minor child inheriting, because minors may not inherit.  One’s parent is NOT automatically their Guardian of the Property for the purposes of overseeing an inheritance.  If an adult is incompetent to handle their affairs, an adult Guardianship may be issued for similar reasons.  Guardianships are complex.  It is advisable to consult an attorney regarding any Guardianship matter.

GUARDIAN OF PROPERTY OF MINOR - A Guardian is someone appointed by a Court to oversee an individual’s personal affairs, financial affairs, or both.  Generally, in a Probate Estate matter, a Guardianship is necessary due to a minor child inheriting, because minors may not inherit.  One’s parent is NOT automatically their Guardian of the Property for the purposes of overseeing an inheritance.  Guardianships are complex.  It is advisable to consult an attorney regarding any Guardianship matter.

HEIR – An Heir is someone who MAY inherit from a Probate Estate.  Under Maryland’s Rules of Intestacy, which are complex, anyone who MIGHT inherit under the Rules of Intestacy is considered an Heir.  This does NOT mean they will actually inherit anything from an Estate.  Heirs receive, by law, a Notice that an Estate has been opened for a Decedent.  The Notice clearly states that this does not mean they will actually inherit.  The Rules in this area are complex.  It is advisable to speak with an Estates & Trusts attorney if you may be an Heir to an Estate or if you are a Personal Representative who is unsure who the actual Beneficiaries of the Estate are.

HEIR AT LAW - An Heir at Law is someone who MAY inherit from a Probate Estate.  Under Maryland’s Rules of Intestacy, which are complex, anyone who MIGHT inherit under the Rules of Intestacy is considered an Heir at Law.  This does NOT mean they will actually inherit anything from an Estate.  Heirs receive, by law, a Notice that an Estate has been opened for a Decedent.  The Notice clearly states that this does not mean they will actually inherit.  The Rules in this area are complex.  It is advisable to speak with an Estates & Trusts attorney if you may be an Heir to an Estate or if you are a Personal Representative who is unsure who the actual Beneficiaries of the Estate are.

INCOME OF THE ESTATE – Generally, anything that is paid to an Estate during the Probate process is considered Income to the Estate.  This might include interest, dividends or capital gains paid after death as well as refunds for unused insurance or subscriptions, final paychecks, or any number of other payments into the Estate.  Income to an Estate should be deposited into the Estate Bank Account.

INFORMATION REPORT - In Maryland, the Information Report is a document filed with the Court that details assets that pass outside of the Probate Estate (non-probate assets). This report is crucial for determining if any Inheritance Tax is due on these assets, which are not distributed according to the will or the Rules of Intestacy

INFORMATION REPORT DELINQUENCY NOTICE – A Notice issued by the Register of Wills to either remind the Personal Representative and/or attorney that an Information Report is soon due or, a Notice that an Information Report is past due.  Note that some Counties send Reminder Notices and others send Delinquency Notices.  A delinquency Notice generally includes or is followed by a Show Cause Order to Remove the Personal Representative.

INFORMATION REPORT REMINDER NOTICE – A Notice issued by the Register of Wills to either remind the Personal Representative and/or attorney that an Information Report is soon due or, a Notice that an Information Report is past due.  Note that some Counties send Reminder Notices and others send Delinquency Notices.  A delinquency Notice generally includes or is followed by a Show Cause Order to Remove the Personal Representative.

INHERIT – To receive money, property or title as an Heir from the previous deceased holder or owner.

INHERITANCE – The receipt of property, money or title as an Heir from the previous deceased holder or owner.

INHERITANCE TAX – In Maryland, non-lineal descendants of the Decedent are taxed at a rate of 10% on their Inheritance.  Lineal descendants (spouse, parents, children, grandchildren) are not subject to the Maryland Inheritance Tax.  

INTERESTED PERSON – In a Maryland Probate matter, an Interested Person is an Heir At Law.  An Heir at Law is someone who MAY inherit from a Probate Estate.  Under Maryland’s Rules of Intestacy, which are complex, anyone who MIGHT inherit under the Rules of Intestacy is considered an Heir at Law.  This does NOT mean they will actually inherit anything from an Estate.  Heirs receive, by law, a Notice that an Estate has been opened for a Decedent.  The Notice clearly states that this does not mean they will actually inherit.  The Rules in this area are complex.  It is advisable to speak with an Estates & Trusts attorney if you may be an Heir to an Estate or if you are a Personal Representative who is unsure who the actual Beneficiaries of the Estate are.

INTERIM ADMINISTRATION ACCOUNT - An Administration Account is an accounting of all financial activity of a Probate Estate beginning with Assets Inventoried as of date of death, adjusting for Actual Sale Values, Income received, Expenses of Administration, Disbursements and Distributions to Heirs.  If an Administration Account will be followed by another Account, generally because the business of Administering the Estate is not yet complete, then the Account is known as an Interim Administration Account.

INTESTACY – An Intestacy occurs when an individual dies without a Last Will and Testament (Will).  In Marland, there is a complex statute, the Rules of Intestacy, that define who the Heirs are in an Intestate Estate.

INTESTATE – One is Intestate if they die without a Last Will & Testament (Will).  In Marland, there is a complex statute, the Rules of Intestacy, that define who the Heirs are in an Intestate Estate.

INVENTORY REPORT – A Report due to the Court within 90 days of opening Probate Proceedings and appointment of a Personal Representative.  The Report lists all Assets of the Probate Estate at their precise value on Date of Death.

INFORMATION REPORT DELINQUENCY NOTICE – A Notice issued by the Register of Wills to either remind the Personal Representative and/or attorney that an Inventory Report is soon due or, a Notice that an Inventory Report is past due.  Note that some Counties send Reminder Notices and others send Delinquency Notices.  A delinquency Notice generally includes or is followed by a Show Cause Order to Remove the Personal Representative.

INFORMATION REPORT REMINDER NOTICE – A Notice issued by the Register of Wills to either remind the Personal Representative and/or attorney that an Inventoru Report is soon due or, a Notice that an Inventory Report is past due.  Note that some Counties send Reminder Notices and others send Delinquency Notices.  A delinquency Notice generally includes or is followed by a Show Cause Order to Remove the Personal Representative.

IRREVOCABLE TRUST - An Irrevocable Trust is a legal arrangement where assets are transferred to a Trustee to be held for the benefit of designated Beneficiaries, but unlike a Revocable Trust, the Grantor cannot modify or terminate the Trust after it is established. Essentially, once assets are placed into an Irrevocable Trust, the Grantor relinquishes control over those assets, and they are managed according to the terms of the Trust document. This type of Trust is often used for Estate Planning to reduce Estate Taxes, Medicaid Planning, protect assets from creditors, and to avoid Probate

IRS FORM 4506-T - Formally known as "Request for Transcript of Tax Return," is a document used to obtain tax transcripts from the IRS. A tax transcript provides a summary of a taxpayer's tax return information, rather than a full copy of the filed return

IRS FORM SS-4 – Formally known as "Application for Employer Identification Number (EIN)," is used to apply for an Employer Identification Number from the Internal Revenue Service (IRS)

IRS FORM 1041 – IRS Form 1041 is an Internal Revenue Service (IRS) income tax return filed by the Trustee or Personal Representative of a Decedent’s Estate or Trust.  Derived from Section 1041 of the Internal Revenue Code (IRC), Form 1041 is used to declare any taxable income that an Estate or Trust generated after the Decedent passed away and before designated assets were transferred to beneficiaries.  The form is due by the 15th day of the fourth month after the Estate’s or Trust’s tax year ends.

IRS FORM 706 – IRS Form 706 ensures that estate taxes are adequately assessed for larger estates, while Form 1041 helps report the estate's income during the settlement process

JOINT OWNERSHIP – When two or more individuals, or entities, own an asset together.  May include real property or a financial account.  Joint owners generally jointly and severally have full ownership of the asset.  The surviving joint owner is generally the sole owner upon the death of the other joint owner(s).  Assets with joint ownership generally are not subject tp Probate.

JUDICIAL PROBATE – A hearing required in the Probate process, generally at the beginning of the process and often to determine who shall be the Personal Representative of the Estate and/or to resolve some other dispute at the outset of the Probate process.

KELLY BLUE BOOK – An online tool frequently used to determine the Fair Market Value of a vehicle for the purpose of establishing the vehicle’s value on the Inventory Summary Report.

LAST WILL AND TESTAMENT  -  A simple Last Will and Testament (Will) appoints a Personal Representative and provides specificity as to the decedent’s intentions regarding who receives their Estate.  Wills may vary in complexity and some may include Trust language to create a Testamentary Trust upon the death of the Decedent.

LEGATEE – A Legatee is a person or an entity designated to inherit under a Will.

LETTERS OF ADMINISTRATION – When Probate is opened and a Personal Representative is appointed, Letters of Administration will be issued to the Personal Representative.  Letters of Administration are used to demonstrate that an individual is the person appointed by the Court to Probate the Estate and conduct the business of the Decedent after death.  

LIFE ESTATE – A Life Estate is granted when a property owner executes and files a Life Estate Deed.

LIFE ESTATE DEED – A type of property deed where the owner(s) of a property grant themselves the right to live in the property for the rest of their lives (Life Tenants) and name a beneficiary or beneficiaries (Remaindermen) to inherit the property upon the death of the last of the owners.  Property deeded as a Life Estate is not subject to the Probate process and/or the terms of a Decedent’s Will.

LIMITED ORDERS – Limited Orders are issued by the Court in lieu of Letters of Administration.  Limited Orders may limit an individual to search and discovery of Estate assets and/or to access a Safe Deposit Box.  Limited Orders do not allow an individual to transact business on behalf of an Estate.  Frequently Letters of Administration are issued as a result of discoveries made using Limited Orders.

LIST OF INTERESTED PERSONS – Submitted with a Petition to Probate an Estate, a List of Interested Persons identifies all individuals and entities named in a Last Will and Testament as Personal Representative(s) and/or Legatees as well as anyone who is specifically disinherited under the Will.  In addition, the List of Interested Persons must identify any individual who might inherit in the Estate if the Decedent died Intestate (without a Will) under the Rules of Intestacy.

LIVING TRUST – Also known as a Revocable Living Trust, a Living Trust is a Trust that is established and may be changed, modified, or revoked, during the lifetime of the Grantor(s).  Living Trusts are often employed by individuals in order to avoid having to Probate an Estate as assets whose ownership is conveyed into a Living Trust prior to death are generally not subject to the Probate process as they are technically not owned by the decedent upon death.

LOSS ON SALE OF ESTATE ASSET - An adjustment is taken on the Administration Account to take a gain (or loss) to the Estate if an asset, such as Real Property, a Vehicle or other Tangible Personal Property, if the asset is sold for more or less than the value reported on the Inventory.

MARYLAND FORM 504 - Maryland Form 504 is the Maryland Fiduciary Income Tax Return. It is used by Fiduciaries, such as Trustees or Personal Representatives, to report the income of an Estate or Trust for tax purposes in Maryland.

MARYLAND FORM MET-1 - Maryland Form MET-1 is the Maryland Estate Tax Return, used to report and pay estate taxes to the state of Maryland

NADA - An online tool frequently used to determine the Fair Market Value of a vehicle for the purpose of establishing the vehicle’s value on the Inventory Summary Report.

NOMINAL BOND OF PERSONAL REPRESENTATIVE BOND – A Surety Bond posted by the Personal Representative of an Estate as required by the Court.  A surety bond is a three-party contract where an insurance company guarantees to the Court that a Personal Representative will fulfill their contractual or legal obligations. If the Personal Representative fails to meet these obligations, the insurance company is responsible for paying the Court to ensure the contract is completed or to cover damages incurred by the Court.

NOTICE OF DISALLOWANCE - Generally, unsecured creditors of a Decedent must file a formal Claim Against the Estate in order to be paid a debt.  The Claim must be filed with the Register of Wills and served upon the Personal Representative and/or the attorney for the Estate.  Creditors generally have 6 months from date of death to file their Claim, albeit there are exceptions to this general Statute of Limitations.  If a Claim is believed to be incorrect or is made after the Statute of Limitations, a Notice of Disallowance may be filed.  The Creditor then has 60 days to substantiate their Claim or it is disallowed.

ORPHANS’ COURT – In Maryland, the Orphans’ Court is generally the Court section that oversees and hears Probate and related matters.  In several Counties, the Orphans’ Court is now part of the Circuit Court.

PAYABLE ON DEATH – A Payable on Death (POD) designation is a way to name beneficiaries on non-retirement accounts, such as bank accounts.  A similar designation, Transfer on Death (TOD), is used for non-retirement investment accounts.  Accounts with named beneficiaries are not subject to the Probate process and instead are inherited directly by the named individuals.

PERSONAL REPRESENTATIVE – An individual or individuals appointed by the Court to Probate an Estate.

PETITION FOR PROBATE – A pleading submitted to the Court, via the Register of Wills, requesting that Probate be opened, and a Personal representative appointed, for an Estate.

POD - A POD (Payable on Death) designation is a way to name beneficiaries on non-retirement accounts, such as bank accounts.  A similar designation, TOD (Transfer on Death), is used for non-retirement investment accounts.  Accounts with named beneficiaries are not subject to the Probate process and instead are inherited directly by the named individuals.

PRIORITY OF PAYMENTS – A statute that specifies the order that payments are to be made out of an Estate.  In Estates with limited assets, the further down the priority list, the less likely an individual or entity is to be paid by the Estate.  Generally, creditor Claims Against the Estate have the lowest priority.

PROBATE - The legal process wherein the Estate of a decedent is administered.

PROBATE ASSETS – The assets determined to be part of an Estate to be administered.  

PROBATE ESTATE – The assets determined to be part of an Estate to be administered.  

PROBATE FEE – The fee charged by the Court, via the Register of Wills, for their work overseeing the administration of an Estate.

REAL PROPERTY – Real property is more commonly referred to a real estate, such as a home or a building or simply undeveloped land.

REGISTER OF WILLS - A public official and office responsible for managing the process of Probating a Will and administering a decedent's Estate, acting as the clerk of the Orphans' Court. Their duties include maintaining records of wills and Estate proceedings, collecting Inheritance Taxes, appointing Personal Representatives, auditing Estate Accounts, and providing a service for the safekeeping of Wills from living individuals.

REGULAR ESTATE - A Regular Estate is an Estate with total probate assets of $50,000 or more.  If the decedent’s spouse is the only heir, then that threshold is $100,000 or more.  Regular Estates require full administration.

RESIDENT AGENT - A designated individual or entity responsible for receiving official documents on behalf of an Estate.  If a Personal Representative resides outside of the State of Maryland, they must appoint a Resident Agent who resides in the State of Maryland.

RESIDUARY DISTRIBUTIONS – Distributions of remaining Estate assets, after any Bequests, made from an Estate to Heirs.

REVOCABLE LIVING TRUST - Also known as a Living Trust, a Revocable Living Trust is a Trust that is established and may be changed, modified, or revoked, during the lifetime of the Grantor(s).  Living Trusts are often employed by individuals in order to avoid having to Probate an Estate as assets whose ownership is conveyed into a Living Trust prior to death are generally not subject to the Probate process as they are technically not owned by the decedent upon death.

RULES OF INTESTACY – The Rules of Intestacy dictate to whom the Residuary Distributions of an Estate shall be made if the decedent died without a Will.

SECURED DEBT – A Secured Debt is a debt where the loan is secured by collateral.  Examples of such debts include mortgages and car loans where the lender holds the home or the vehicle as collateral and may seize the collateral if the loan is not paid.

SMALL ESTATE - A Small Estate is an Estate with total Probate assets of less than $50,000.  If the decedent’s spouse is the only heir, then that threshold is total Probate assets of less than $100,000.  Small Estates enjoy an abbreviated Probate process in regard to the amount of required administration and filings.

SURETY BOND - A Surety Bond, also known as a Nominal Bond or Bond of Personal Representative, is posted by the Personal Representative of an Estate as required by the Court.  A surety bond is a three-party contract where an insurance company guarantees to the Court that a Personal Representative will fulfill their contractual or legal obligations. If the Personal Representative fails to meet these obligations, the insurance company is responsible for paying the Court to ensure the contract is completed or to cover damages incurred by the Court.

TANGIBLE PERSONAL PROPERTY - In an Estate, Tangible Personal Property is anything physical that can be touched, moved, or consumed and is not real estate (like land or buildings). It includes a wide range of "stuff" a person owns, such as furniture, vehicles, jewelry, clothing, collectibles, pets, and even items for personal or business use. It excludes intangible assets like cash, bank accounts, stocks, bonds, and intellectual property, as these are not physical objects.

TESTAMENTARY TRUST – A Trust that is part of one’s Last Will and Testament.  A Testamentary Trust is dormant until the Testator’s death.  Then the Trust is used to accept the Residuary Distribution from the Probate Estate and distribute the assets as the Trust dictates.

TESTATOR - A Testator is a person who creates a valid Last Will and Testament.  The term Testator refers to the male gender.

TESTATRIX - A Testatrix is a person who creates a valid last will and testament.  The term Testator refers to the female gender.

TOD - A TOD (Transfer on Death) designation is a way to name beneficiaries on non-retirement investment accounts.  A similar designation, POD (Payable on Death), is used for non-retirement non-investment accounts, such as bank accounts.  Accounts with named beneficiaries are not subject to the Probate process and instead are inherited directly by the named individuals.

TRANSFER ON DEATH - A Transfer on Death (TOD) designation is a way to name beneficiaries on non-retirement investment accounts.  A similar designation, POD (Payable on Death), is used for non-retirement non-investment accounts, such as bank accounts.  Accounts with named beneficiaries are not subject to the Probate process and instead are inherited directly by the named individuals.

TRUST - A Trust is a Fiduciary relationship where a person, the Grantor or Settlor, places assets under the control of a second person, the Trustee, to hold and manage for the benefit of a third person, the Beneficiary. Trusts are used for various purposes, including Estate Planning, protecting assets from creditors, minimizing taxes, and providing for individuals with special needs. 

TRUSTEE - A Trustee is a person or entity that legally holds the title to assets (property) placed into a Trust for the benefit of another, known as a Beneficiary. The Trustee's primary role is to manage, protect, and distribute these Trust assets according to the terms specified by the Trust's creator (the settlor or trustor) and applicable laws.

UNIVERSAL TRANSFER TO MINORS (UTMA) ACCOUNT - If a minor child inherits, the inheritance 

must be held in a Custodial Account like a Universal Transfer to Minors Account (UTMA).

UNSECURED DEBT - An entity, or individual, to which a debt is owed by the Decedent of the Estate.  Secured Creditors have collateral for the debt owed, such as a mortgage or auto loan.  Unsecured Creditors do not have collateral and tend to be credit cards, personal loans, health care professionals/facilities or other individuals.

WILL - A simple Last Will and Testament (Will) appoints a Personal Representative and provides specificity as to the decedent’s intentions regarding who receives their Estate.  Wills may vary in complexity and some may include Trust language to create a Testamentary Trust upon the death of the Decedent.

WILL CAVEAT – A contest or objection to a Last Will and Testament generally challenging the validity of a Will.

WILL CONTEST - To contest or object to a Last Will and Testament generally challenging the validity of a Will.

WILL OF NO ESTATE – Generally refers to a situation where one dies with a Will but has no assets to Probate under the Will.