Estates and Trusts (GET) — Title 8. Claims of Creditors

Except as provided in § 8–104 of this subtitle, a proceeding to enforce a claim against an estate of a decedent may not be revived or commenced before the appointment of a personal representative.

After appointment and until the estate is closed, the procedures prescribed by § 8–104 of this subtitle shall be followed.

After the estate is closed, a creditor whose claim has not been barred may recover directly from the persons to whom property has been distributed as provided in § 10–102 of this article, or from a former personal representative individually as provided in § 10–103 of this article.

Unless a contrary intent is expressly indicated in the will, a claim which was barred by a statute of limitations at the time of the death of the decedent may not be allowed or paid.

Subject to § 8-103(a) of this subtitle, a period of limitations which would terminate, except for the death of the decedent, during the period from the death of the decedent until 6 months after the date of the decedent’s death, is automatically extended until 6 months after the date of the decedent’s death.

Except as otherwise expressly provided by statute with respect to claims of the United States or the State, a claim against an estate of a decedent, whether due or to become due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or other legal basis, is forever barred against the estate, the personal representative, and the heirs and legatees, unless presented within the earlier of the following dates:

A claim for slander against an estate of a decedent that arose before the death of the decedent is barred even if an action was commenced against and service of process was effected on the decedent before the decedent’s death.

A claim against the estate based on the conduct of or a contract with a personal representative is barred unless an action is commenced against the estate within 6 months after the date the claim arose.

Nothing in this section shall affect or prevent an action or proceeding to enforce a mortgage, pledge, judgment or other lien, or security interest on property of the estate.

If the decedent had been duly served with process before the decedent’s death, nothing in this section shall affect an action for injuries to the person or damage to property that was commenced against the decedent.

A claim filed by the Maryland Department of Health against the estate of a deceased Maryland Medical Assistance Program recipient, as authorized under § 15–121(a) of the Health – General Article, is forever barred against the estate, the personal representative, and the heirs and legatees, unless the claim is presented within the earlier of the following dates:

Claims against an estate of a decedent may be presented as provided in this section.

If the applicable assets of the estate are insufficient to pay all claims in full, the personal representative shall make payment in the following order:

In this section, “funeral expenses” includes the costs of a funeral, a burial, a cremation, a disposition of the decedent’s remains, a memorial, a memorial service, food and beverages related to bringing together the decedent’s family and friends for a wake or prefuneral or postfuneral gathering or meal, and any other reasonable expenses authorized by the decedent’s will.

Subject to the priorities contained in § 8–105 of this subtitle, the personal representative shall pay the funeral expenses of the decedent within six months of the first appointment of a personal representative.

If a personal representative intends to disallow, in whole or in part, a claim that has been presented within the appropriate time and in the form prescribed in § 8–104(b) or (c) of this subtitle, the personal representative shall mail notice to each claimant stating:

A judgment in an action against a personal representative to enforce a claim against the estate of a decedent is an allowance of the claim.

The personal representative may pay, at any time, a just claim that has not been barred, with or without formal presentation, but the personal representative is personally liable to another claimant whose claim is allowed and who is injured by the payment if:

The individual liability of a personal representative to third parties arising from the administration of the estate is that of an agent for a disclosed principal, as distinguished from the personal representative’s fiduciary accountability to the estate.

A personal representative is not individually liable on contracts properly entered into in the personal representative’s fiduciary capacity in the course of administration of the estate unless the personal representative expressly agrees to be.

A personal representative is not individually liable for obligations arising from possession or control of property of the estate or for torts committed in the course of administration of the estate unless the personal representative is personally at fault.

Claims based on contracts, obligations, and torts of the types described in subsections (b) and (c) of this section may be allowed against the estate whether or not the personal representative is individually liable.

The individual liability of the personal representative to third parties arising from the administration of the estate may be determined in the same proceeding in which a claim by the third party against the estate is considered.

If there is doubt whether a claim should be allowed against the estate or against the personal representative as an individual, or both, a court in which a proceeding to enforce the claim is pending shall direct that notice be given to all interested persons and all creditors whose interests will be affected by the result and shall give them an opportunity to be heard.

When the court allows a claim against the personal representative individually, the allowance has the same effect as a judgment against the personal representative.

An action may not be brought to charge a personal representative on any special promise to answer damages out of the personal representative’s own estate, unless the contract or agreement on which the action is brought, or some memorandum or note of it, is in writing and signed by the party to be charged, or some other person lawfully authorized by the personal representative.

On proof of an unsecured claim that will become due at some future time, and that has not been compromised pursuant to § 7–401 of this article or authority conferred by the will, the court shall direct the investment of an amount that will provide for the payment of the claim when it becomes due.

When a creditor holds a security for an allowable claim due at some future time the creditor may rely on the creditor’s rights under § 8–111 of this subtitle or may file a claim as an unsecured claim not yet due, with the right of withdrawing the claim before the taking of action on it, and rely on the creditor’s rights as provided in § 8–111 of this subtitle after the withdrawal.

If during administration, the creditor exhausts the security before receiving payment, the creditor is entitled to the full amount of the creditor’s allowed claim less the amount realized on exhausting the security.

If the creditor has not then exhausted, or does not have the right to exhaust the creditor’s security, the creditor is entitled to the full amount of the creditor’s allowed claim less the value of the security determined by agreement, or as the court determines.

The creditor and personal representative may determine, by agreement, arbitration, or compromise, the value of the claim according to its probable present worth, and, on approval by the court, the value of the claim may be allowed and paid in the same manner as an absolute claim.

The court may order the personal representative to make distribution of the estate except for sufficient funds retained to pay the claim if and when it becomes absolute.

The court may order another method.

An execution or a levy may not issue nor be made against property of the estate under a judgment against a decedent or a personal representative.

The provisions of this section do not apply to the enforcement of mortgages, pledges, liens, or other security interests on property in an appropriate proceeding.