Maryland first and final account template

The Register of Wills' sample guide sets it out: a summary page, then Schedule 1 beginning balance (the inventory values, or what the last account carried forward), Schedule 2 principal receipts, Schedule 3 changes in assets with gains and losses, Schedule 4 income since death, Schedule 5 disbursements, Schedule 6 distributions and inheritance tax, and Schedule 7 assets retained (only when the account is not final). Receipts and disbursements must be equal. The guide says its layout is not required, but the content is.

The first account is due 9 months after the personal representative was appointed (Estates and Trusts 7-305). After an interim account, the guide says the next one is due 6 months after the order approving the prior account or 9 months after it was filed, whichever comes first. The court can extend the time on a written application for good cause.

Schedule 2 is principal: money that belonged to the decedent at death but arrived later, such as a final paycheck, refunds, or dividends earned before death. Schedule 4 is income earned on estate assets after death, such as interest on the estate account. The split matters because income after death is not subject to inheritance tax.

Compare the sale price with the value on the inventory. A higher price is a gain and a lower one is a loss. Selling costs go on Schedule 5, not here. A change in market value with no sale is not shown unless the court approved a revised value under Estates and Trusts 7-204.

Tax-General 7-204 sets the rate at 10% of the clear value passing to a person who is not exempt. Spouses, children and their descendants, parents, grandparents, brothers and sisters, and qualifying charities are exempt, along with a few others (Tax-General 7-203). The guide's method: a specific bequest without a tax clause is reduced by 10%. With a tax clause, or on an interim residue payment with nothing withheld, the estate pays 11.11111% of the amount. Only principal is taxed, not income or gains after death. You choose each person's exemption; the Register of Wills assesses the tax and sends a bill.

It is set by Estates and Trusts 2-206 on the gross estate, the total of Schedules 1 to 4. For example, from $500,000 up to $1,000,000 the fee is $1,000. Estates opened before October 1, 2022 use the older table in the guide. A later account adds the fee on the new total less the fee on the last one; the page works out both. The Register of Wills assesses it.

A final account shows every asset sold or distributed, and the estate closes once the court approves it and no exceptions are filed within 20 days. An interim account lists what is still held on Schedule 7, with an explanation of why the estate stays open. The next account starts from that Schedule 7.

Only after a court order, or after all interested persons and open creditors consent in writing on the Register's form. The maximum commission is 9% of the first $20,000 plus 3.6% of the rest (Estates and Trusts 7-601), unless the will provides more. List an unpaid fee on Schedule 5 as to be paid, subject to court approval, as the guide's sample does.

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