Maryland Executor's Estate Inventory and Accounting Guide

If you've been named as an executor in Maryland, you're probably wondering what accounting responsibilities you actually owe to the court, the heirs, and the estate itself. The short answer: a lot. Maryland probate law holds personal representatives to strict standards when it comes to tracking every dollar, listing every asset, and reporting everything on time. Miss a deadline or skip an account, and you could face personal liability. This guide walks through exactly what's expected of you no legalese, no guesswork.

What does "executor accounting" actually mean in Maryland?

When someone dies and leaves behind an estate, the person appointed to manage it the executor, or more formally under Maryland law, the personal representative has a legal duty to account for everything. This means documenting all assets the decedent owned, all debts and expenses paid, all income received, and all distributions made to beneficiaries.

In Maryland, this accounting happens in two main parts. First, you file an inventory with the Register of Wills or Orphans' Court in the county where the estate is being administered. Second, you file one or more accountings that show what happened to those assets over time. Together, these documents give the court and the interested parties a clear picture of how the estate was handled.

The requirements are laid out in the Maryland Estates and Trusts Article, and they apply whether the estate is large or small, whether there's a will or not.

When do you need to file the estate inventory?

Maryland gives you a specific window. After your appointment as personal representative, you must file an inventory with the Register of Wills within three months. That deadline is firm. If you need more time, you can request an extension from the court, but you need to ask before the deadline passes not after.

The inventory must list all probate property as of the date of death. That includes real estate, bank accounts, investment accounts, vehicles, personal belongings of value, business interests, and any other assets that pass through the estate. You can learn more about filing deadlines for estate administration inventories in Maryland to make sure you don't miss critical dates.

What goes into the inventory and what gets left out?

A common point of confusion is what counts as estate property. Only probate assets go on the inventory. These are assets that were solely in the decedent's name without a beneficiary designation or right of survivorship. Examples include:

A bank account in the decedent's name alone
Real estate owned solely by the decedent (or owned as tenants in common)
Personal property like jewelry, art, vehicles, and furniture
Stocks or brokerage accounts without transfer-on-death designations
Business interests held individually

Non-probate assets like life insurance with a named beneficiary, jointly held property with rights of survivorship, retirement accounts with beneficiaries, and assets in a living trust generally don't go on the inventory because they pass outside the probate process.

Each asset needs to be listed with its fair market value as of the date of death. For bank accounts, that's the balance on the day the person died. For real estate, you'll typically use an appraisal or the assessed value. For personal property, reasonable estimates are acceptable for everyday items, but high-value assets may need a formal appraisal.

For detailed guidance on filling out the actual forms, see how to complete estate inventory forms in Maryland probate court.

How should you format the schedule of assets?

Maryland courts expect the inventory to follow a specific format. The schedule of assets is typically organized by category: real property, bank accounts, investments, personal property, and so on. Each entry should include a description, the date-of-death value, and any relevant notes (such as whether there's a mortgage on a property).

The Orphans' Court in each county may have its own preferences for how the schedule is laid out, even though the statutory requirements are statewide. It's worth checking with the local Register of Wills office to see if they provide a template or have formatting expectations. Our page on the schedule of assets and debts format for Maryland Orphans' Court covers this in more detail.

What about debts and expenses do those go on the inventory too?

Technically, debts and expenses are separate from the asset inventory, but they are part of the full accounting picture. You'll want to track:

Funeral and burial costs
Outstanding medical bills
Credit card balances
Mortgages and liens
Taxes owed (income tax, property tax, estate tax)
Administrative expenses like attorney fees, court costs, and your own commissions

Maryland law sets the personal representative's commission at a percentage of the estate's assets and income generally up to 9% of the first $20,000 of probate estate assets and income, and a smaller percentage on the balance. The exact calculation can be found in Maryland Code, Estates and Trusts Article § 7-601. Keep in mind that the court can adjust commissions if they're deemed unreasonable.

When do you need to file an accounting after the inventory?

The inventory is just the starting point. Once you start managing the estate paying debts, collecting income, selling assets, making distributions you need to account for those transactions. Maryland requires personal representatives to file an accounting (sometimes called an "administration account") that covers:

Income received by the estate (rent, dividends, interest, sale proceeds)
Expenses and debts paid
Distributions made to beneficiaries
Any changes in asset values since the inventory
Assets still on hand

The first accounting is typically due within nine months of your appointment, though the Orphans' Court can set different schedules. If the estate stays open for a long time, you may need to file multiple accountings before the estate is closed. The final accounting is filed when you're ready to close the estate and be discharged.

You can read more about Maryland estate accounting requirements for personal representatives for the full breakdown.

What are the most common mistakes executors make with accounting?

After working through many estate cases, certain errors come up again and again:

Waiting too long to start. The three-month inventory deadline arrives faster than you think. If you don't begin gathering account statements and property information right away, you'll scramble at the end and likely file late.

Guessing at asset values. You don't need to hire an appraiser for every item in the house, but you do need reasonable, defensible values. Writing "$500" for a painting that's actually worth $5,000 creates problems later when beneficiaries ask questions.

Mixing estate funds with personal funds. Estate money must go into a separate estate account. Never deposit estate funds into your personal checking account, even temporarily. This is one of the quickest ways to create legal trouble for yourself.

Not keeping receipts and records. Every expense, every payment, every transaction needs documentation. If you pay a plumber to fix a leak at the decedent's house before listing it for sale, save that invoice. If you distribute $10,000 to an heir, get a signed receipt or proof of the bank transfer.

Forgetting about tax obligations. The estate may owe income taxes, and in some cases, Maryland estate tax or even a federal estate tax. These must be addressed before final distribution. The IRS requires a final individual income tax return (Form 1040) and possibly a fiduciary income tax return (Form 1041) for the estate itself. The IRS estate tax information page provides federal guidance.

Distributing assets before paying debts. Maryland law requires debts to be paid in a specific order of priority. If you hand everything to the heirs first and then discover unpaid debts, you may be personally liable for those amounts.

Can you hire help with the accounting, or do you have to do it yourself?

You can and in most cases should hire professionals. An estate attorney can handle the legal filings and advise you on court requirements. A CPA or accountant experienced with estate work can prepare the financial accountings and tax returns. These fees are paid from the estate, not from your own pocket, as long as they're reasonable.

That said, you remain responsible as the personal representative. Hiring a professional doesn't transfer your liability. You still need to review everything, make sure it's accurate, and sign off on it.

What happens if you don't fulfill your accounting duties?

The Orphans' Court has broad authority to hold personal representatives accountable. Consequences can include:

Court orders compelling you to file the inventory or accounting
Removal as personal representative
Personal liability for losses caused by negligence or misconduct
Denial or reduction of your commissions
Surcharge meaning you're ordered to repay money to the estate out of your own funds

Interested parties (heirs, beneficiaries, creditors) can petition the court to compel your compliance or to have you removed. The court takes these duties seriously because the accounting is the primary way beneficiaries can verify that the estate was handled properly.

How does Maryland handle estates where there's no will?

The accounting responsibilities are essentially the same whether or not there's a will. When there's no will, the person appointed is called the administrator rather than the executor, but the duties are identical. You still file the inventory within three months, you still account for all transactions, and you still distribute assets according to Maryland's intestacy laws rather than a will's instructions.

One practical difference: without a will naming you, you may need to post a bond to be appointed. The bond protects the estate in case you mishandle funds, and the cost comes out of the estate.

Practical checklist for Maryland executor accounting responsibilities

Within the first week: Open a separate estate bank account. Obtain an EIN from the IRS for the estate.
Within the first month: Collect all financial statements, property deeds, vehicle titles, and insurance policies. Begin documenting every asset.
Within the first two months: Get appraisals for high-value assets. Gather debt and bill information. Notify known creditors.
Within three months: File the inventory with the Register of Wills. Use the correct format and include fair market values as of the date of death.
Months three through nine: Pay valid debts in order of priority. File tax returns as needed. Collect income. Keep meticulous records of every transaction.
Within nine months: File the first administration account with the court unless the court has set a different deadline.
Before closing: File a final accounting. Get signed receipts from all beneficiaries for their distributions. Request discharge from the court.

One last tip: Don't try to memorize every rule and deadline. Create a simple spreadsheet or use accounting software to track every asset, expense, and payment from day one. The more organized you are early on, the less stressful the final accounting will be and the faster you can close the estate and move on.