Maryland Probate Bonds,
Handled Simply.

Maryland is one of the few states that still uses an Orphans' Court. Each of the state's 24 jurisdictions, the 23 counties and Baltimore City, has an Orphans' Court, and a Register of Wills in each jurisdiction handles the day-to-day administration of estates, appoints personal representatives, collects inheritance tax, and audits accounts. The Orphans' Court resolves disputes and oversees the proceeding. In Montgomery and Harford counties, Circuit Court judges sit as the Orphans' Court.

Maryland is not a Uniform Probate Code state. It administers estates under the Estates and Trusts Article of the Maryland Code. The estate fiduciary is called the personal representative, an executor when named in a will and an administrator when appointed without one. The bond statute is Section 6-102.

Maryland is the only state that imposes both a state estate tax, with a $5,000,000 exemption, and a separate inheritance tax of 10 percent on property passing to beneficiaries who are not close relatives, so the personal representative must plan for both.

The amount of a Maryland bond is set by the Register of Wills or the Orphans' Court under Estates and Trusts Section 6-102:

• Capped at the personal property value: The penalty sum is fixed in an amount not exceeding the probable maximum value of the personal property of the estate during administration.
• Reduced by secured assets: The amount is reduced by the value of collateral posted with the court and by cash held in a restricted account that can be withdrawn only with court approval.
• Nominal bond amount: When the full bond is excused or waived, a nominal bond is still set in an amount sufficient to secure payment of the estate's debts and the Maryland inheritance tax payable by the personal representative.
• Adjustable: The penalty sum may be increased or decreased by the court for good cause at any time during administration.
• Premium from the estate: The premium for the bond is chargeable against the property of the estate.

Maryland is distinctive because even a waived bond leaves a nominal bond in place. Under Estates and Trusts Section 6-102:

• Full bond by default: Unless excused, every personal representative executes a bond to the State of Maryland for the benefit of all interested persons and creditors, with surety approved by the Register of Wills.
• Waived by will or all interested persons: The full bond is excused when the will expressly excuses it or when all interested persons sign a written waiver of bond.
• Nominal bond still required: Even when the full bond is excused, a nominal bond must still be given, sufficient to secure the estate's debts and the Maryland inheritance tax. This protects creditors and the State, not the heirs.
• Court may require a full bond later: Even if a bond was not required at appointment, the court may require one during administration on the petition of an interested person or creditor for good cause.
• Corporate or individual surety: The surety may be a corporation authorized to act as surety in Maryland or one or more approved individuals, all jointly and severally liable with the personal representative.

Filing a Maryland bond follows the Estates and Trusts Article and Register of Wills practice:

• Filed with the petition: A Bond of Personal Representative, or a Nominal Bond if the full bond is waived, is filed with the petition to open the estate, along with a Waiver of Bond when one applies.
• Filed with the Register of Wills: Every bond is filed in the office of the Register of Wills in the jurisdiction where the estate is opened, generally where the decedent was domiciled.
• Approved surety: The bond carries a corporate surety authorized in Maryland, or approved individual sureties, and runs to the State of Maryland.
• Resident agent for nonresidents: A nonresident personal representative must file an irrevocable designation of a Maryland resident agent for service of process before qualifying.
• Reduced by deposits: The bond can be reduced by collateral posted with the court or by estate cash held in a restricted account.
• Bond stays in force: The bond remains in effect until the estate is administered, the final account is approved, and the personal representative is discharged.

The cost of a Maryland bond is a premium paid to the surety company, and it depends on whether a full bond or a nominal bond is required:

• Nominal bonds are inexpensive: Because a nominal bond covers only debts and inheritance tax, its premium is low, often a flat minimum of around $85 to $150 per year.
• Full bond rate range: A full personal representative bond is priced at roughly 0.5% to 1% of the bond amount per year for well-qualified applicants, so a $100,000 bond commonly costs between $500 and $1,000 per year.
• Credit and attorney factors: Many sureties skip the credit check on smaller bonds, and some waive it when an attorney represents the estate.
• Reduced by deposits: Depositing estate cash in a restricted account or posting collateral lowers the bond and the premium.
• Annual renewal: Maryland estates can stay open across more than one year, so the premium is charged annually until the personal representative is discharged.
• Premium as an estate expense: Under Section 6-102, the premium for the bond is chargeable against the property of the estate.

Beyond the standard personal representative bond, Maryland probate practice uses several additional bond types:

• Nominal Bond: A reduced bond required even when the full bond is waived, securing only the estate's debts and the Maryland inheritance tax payable by the personal representative.
• Full Bond of Personal Representative: The standard bond used when the will does not excuse bond and the interested persons have not waived it, covering the full personal property of the estate.
• Special Administrator Bond: When the court appoints a special administrator to preserve estate assets before a personal representative qualifies, it may require a bond for that role.
• Guardian Bond: A guardian of the property of a minor or a disabled person posts a bond tied to the value of the property under the guardian's control.
• VA Fiduciary Bond: A fiduciary appointed to manage benefits for a veteran answers to both the Maryland court and the federal Department of Veterans Affairs, and the bond may reflect both the estate and the benefits under management.

Maryland does not run a licensing board for private professional fiduciaries, but its probate system places clear duties on every personal representative:

• Appointed by the Register: The Register of Wills appoints the personal representative and oversees the timely administration of the estate, referring delinquent matters to the Orphans' Court.
• Bond runs to the State: The bond runs to the State of Maryland for the benefit of interested persons and creditors, and even a waived bond leaves a nominal bond protecting creditors and the inheritance tax.
• Inventory and accounts: The personal representative files an inventory and periodic accounts, which the Register audits and the Orphans' Court reviews.
• Dual tax duty: Because Maryland has both an estate tax and an inheritance tax, the personal representative is responsible for determining and paying any tax due before closing.
• Corporate fiduciaries: A bank or trust company authorized to act as a fiduciary may serve, with the Register and Orphans' Court overseeing its accounts.

• Allegany, Orphans' Court (Cumberland)
• Anne Arundel, Orphans' Court (Annapolis)
• Baltimore City, Orphans' Court (Baltimore)
• Baltimore County, Orphans' Court (Towson)
• Calvert, Orphans' Court (Prince Frederick)
• Caroline, Orphans' Court (Denton)
• Carroll, Orphans' Court (Westminster)
• Cecil, Orphans' Court (Elkton)
• Charles, Orphans' Court (La Plata)
• Dorchester, Orphans' Court (Cambridge)
• Frederick, Orphans' Court (Frederick)
• Garrett, Orphans' Court (Oakland)
• Harford, Orphans' Court (Bel Air)
• Howard, Orphans' Court (Ellicott City)
• Kent, Orphans' Court (Chestertown)
• Montgomery, Orphans' Court (Rockville)
• Prince George's, Orphans' Court (Upper Marlboro)
• Queen Anne's, Orphans' Court (Centreville)
• Somerset, Orphans' Court (Princess Anne)
• St. Mary's, Orphans' Court (Leonardtown)
• Talbot, Orphans' Court (Easton)
• Washington, Orphans' Court (Hagerstown)
• Wicomico, Orphans' Court (Salisbury)
• Worcester, Orphans' Court (Snow Hill)