Intestate Succession in Maryland: What You Need to Know

What would happen to your property if you passed away without a will or estate plan? It is a question that many people tend to avoid, but the answer could have a significant impact on your loved ones. In Maryland, the state’s intestate succession laws take control when someone dies without leaving a legally valid will. These laws decide who inherits your assets, how much they receive, and in what order – often without regard to your personal wishes. 

Who Inherits Your Estate under Maryland Intestate Succession Laws?

When You Have Children but No Spouse

If you are survived only by your children, they will inherit your entire estate. Your assets will be divided equally between them. 

When You Have a Spouse but No Children or Other Descendants

If you leave behind a spouse but no children, grandchildren, or other descendants, your spouse will inherit everything. 

When You Have a Spouse and Minor Children

If you leave behind a spouse and minor children, your spouse will inherit half of your intestate property. The remaining half will be distributed equally among your children. 

When You Have a Spouse and Descendants Who Are Not the Spouse’s Children

In situations where you have children or other descendants from a previous relationship, your spouse will inherit the first $100,000 of your intestate property, plus half of the remaining balance. The rest of the estate will be divided among your descendants.

When You Have No Spouse or Descendants, but Surviving Parents

If you are survived only by your parents, they will inherit your entire estate. Your assets will be distributed equally between your father and mother if they’re both alive. If only one parent is alive, they will inherit the entire estate. 

When You Have No Spouse, Descendants, or Parents, but Have Siblings

If you’re survived only by your siblings, they will inherit everything. The estate is divided equally among your brothers and sisters, whether they are full or half-siblings.

When No Relatives Can Be Identified

In rare cases where you have no surviving relatives, your estate will escheat to the State of Maryland. This means the state will claim ownership of your property.

Special Considerations

• Adopted Children: Legally adopted children are treated the same as biological children under Maryland’s intestate succession laws.
• Stepchildren: Stepchildren who have not been legally adopted are not entitled to inherit under intestate succession.
• Illegitimate Children: Children born out of wedlock can inherit your assets if paternity has been legally established.

Assets Impacted by Intestate Succession Laws in Maryland

It is important to note that not all assets are subject to intestate succession laws in Maryland. Only the assets that pass through probate are subject to these laws. Probate assets are those owned solely by the deceased and do not have a designated beneficiary or a right of survivorship. Here are the types of assets typically affected:

• Real Estate: Property solely in your name without a co-owner or transfer-on-death deed.
• Bank Accounts: Accounts without payable-on-death or joint ownership designations.
• Personal Property: Items such as jewelry, furniture, and vehicles owned solely by you.
• Investment Accounts: Accounts without a named beneficiary or joint ownership.
• Business Interests: Sole proprietorships or shares in a business owned only by you.

Assets Not Affected by Maryland’s Intestate Succession Laws

Certain types of assets are not affected by Maryland’s intestate succession laws because they are not subject to the probate process. These assets typically have a designated beneficiary or are owned jointly with survivorship rights. These include: 

• Jointly Owned Property: Real estate or other property held in joint tenancy with rights of survivorship automatically passes to the surviving co-owner.
• Payable-on-Death (POD) Accounts: Bank accounts with a designated beneficiary are transferred directly to that person.
• Transfer-on-Death (TOD) Accounts: Investment or brokerage accounts with a transfer-on-death designation go to the named beneficiary.
• Life Insurance Policies: Proceeds from life insurance policies are paid directly to the named beneficiary.
• Retirement Accounts: 401(k), IRA, and other retirement accounts with a named beneficiary bypass probate.
• Trust Assets: Any property placed in a trust is distributed according to the terms of the trust, not through intestate succession.

Complications Involved in Dying Intestate in Maryland 

Dying intestate can create a host of complications for your loved ones and your estate. These include: 

Family Disputes over Inheritance

Without a clear roadmap provided by a will, your family members might disagree with each other about who should inherit what and how your assets should be divided. These disputes can lead to strained relationships, prolonged legal battles, and emotional stress.

Unequal or Unintended Distributions

Maryland’s intestate succession laws follow strict guidelines, which might not reflect your personal wishes. For instance, stepchildren or close friends who are not legally recognized heirs will not receive anything, regardless of your relationship with them.

Delays in Settling the Estate

The probate process in Maryland can be lengthy, especially when there are disagreements among heirs or difficulties in locating relatives. This delay can leave your loved ones waiting for months or even years to receive their inheritance.

Higher Legal and Administrative Costs

Without a will to simplify the process, settling an intestate estate can be more expensive. Court costs, attorney fees, and other administrative expenses can diminish the value of the estate.

Loss of Control over Asset Distribution

When you die intestate, the state determines who inherits your property. This lack of control can result in outcomes that you might not have wanted. For example, distant relatives whom you barely knew might end up inheriting your assets instead of close friends or charitable organizations.

Impact on Minor Children

If you have minor children and no surviving spouse, the court will appoint a guardian to manage their inheritance. This guardian might not be the person you would have chosen to care for your children’s financial future.

What is the Best Way to Avoid Intestate Succession in Maryland?

Intestate succession laws in Maryland come into effect if you die without a valid will or estate plan. To avoid this problem, creating a comprehensive estate plan is essential. An estate plan can make sure your assets are managed, divided, and distributed according to your wishes, provide clarity for your loved ones, and avoid the complications of intestate succession.

An effective estate plan should ideally include the following components: 

• Will: A will is the foundation of your estate plan. It allows you to designate beneficiaries for your property, name an executor to manage your estate, and appoint guardians for minor children.
• Trust: A revocable living trust can help avoid probate and make sure your assets pass directly to your beneficiaries without any court intervention. It can also protect your family’s privacy and can be useful for managing complex estates or specific asset distribution.
• Durable Power of Attorney: This document designates someone to handle your financial matters if you become incapacitated, ensuring your affairs are managed smoothly.
• Healthcare Directive: This includes a living will and medical power of attorney, allowing someone to make healthcare decisions on your behalf if you are unable to do so.

Apart from this, you should also make sure that your retirement accounts, life insurance policies, and other financial accounts have up-to-date beneficiary designations that align with your wishes.

Avoid the Challenges of Intestate Succession with Our Trusted Maryland Estate Planning Lawyers

Intestate succession and probate are complicated issues that require personalized legal guidance. Whether you are planning for your future or dealing with the aftermath of a loved one’s unexpected passing, the experienced Maryland estate planning attorneys at the Baddour Law Firm can help you. 

Our firm is your one-stop solution for all estate planning needs. Whether you need assistance drafting a will, setting up living trusts, special needs trusts, or powers of attorney, we’re here to help. We also offer ongoing support to ensure your estate plan evolves with your changing circumstances. If disputes arise during probate, our skilled attorneys are experienced in probate litigation to protect your interests.

Call our firm today at 301-494-2108 or fill out our online contact form to schedule a consultation with one of our highly-rated Maryland estate planning lawyers.