When it comes to planning for the future, it’s essential to understand what will happen to your assets after you pass away. The process of valuing and distributing assets after death is part of probate — a legal procedure that ensures your estate is properly administered. In Maryland, probate follows specific state laws and procedures, making it crucial to understand the steps involved.

Accurate asset valuation is a foundational step in the probate process. Whether you are preparing your own estate plan or managing a loved one’s estate as an executor, knowing how to value assets is critical for fair distribution and minimizing legal complications.

At Blackford & Flohr, we guide Maryland families through the complexities of probate, from estate planning to asset valuation and beyond. This guide will help you understand what counts as an asset, how to value different types of property, and why professional guidance is essential.

What Are Considered Assets in a Maryland Estate?

Assets in an estate include everything the deceased person owned at the time of their death. These assets fall into two main categories: tangible and intangible.

Tangible Assets:

• Real estate (homes, land, rental properties)

• Vehicles (cars, boats, recreational vehicles)

• Jewelry, art, and collectibles

• Household furnishings

• Personal belongings of significant value

Intangible Assets:

• Bank accounts

• Retirement accounts (401(k), IRA, pensions)

• Investment portfolios (stocks, bonds, mutual funds)

• Life insurance proceeds (if payable to the estate)

• Business ownership interests

• Intellectual property (patents, copyrights)

It’s important to note that certain assets, like joint accounts or those with named beneficiaries (such as life insurance), may pass outside probate. However, they still play a role in estate valuation, especially for tax purposes.

Why Accurate Asset Valuation Matters in Maryland Probate

1. Fair Distribution to Heirs and Beneficiaries

One of the primary reasons to value assets accurately is to ensure that the estate is distributed fairly and according to the will’s instructions or Maryland intestacy laws if there is no will.

Without accurate valuation:

• Some beneficiaries may receive less than intended.

• Disputes may arise among heirs.

• Executors risk personal liability for errors.

2. Estate and Inheritance Taxes

Maryland is one of the few states that imposes both estate tax and inheritance tax. Estate taxes are based on the total value of the estate. Underestimating asset value can result in unexpected tax liabilities, while overestimating can reduce inheritances unnecessarily.

Proper valuation can help:

• Minimize tax exposure.

• Ensure compliance with Maryland tax law.

• Avoid penalties or audits.

3. Legal Compliance

The executor or personal representative of the estate is legally required to provide an accurate inventory of the estate’s assets to the Orphans’ Court in Maryland. Failing to do so can delay probate proceedings and expose the executor to legal challenges.

How to Value Estate Assets in Maryland

Accurate asset valuation involves several essential steps. Here’s a step-by-step guide to follow:

Step 1: Make a Comprehensive Inventory

Start by creating a detailed list of all assets owned by the deceased at the time of death. Include:

• Property addresses

• Account numbers

• Vehicle details

• Descriptions of personal property

• Estimates of value (to be verified)

Having a complete inventory ensures nothing is overlooked during probate.

Step 2: Determine Fair Market Value

Fair market value is the price a willing buyer would pay to a willing seller in an open market.

• Real Estate: Hire a licensed appraiser or consult recent sales data.

• Vehicles: Use resources like Kelley Blue Book.

• Jewelry & Art: Obtain a professional appraisal.

• Investments: Check the date-of-death statements from financial institutions.

• Business Interests: Hire a certified business valuation expert.

Tip: Always keep written documentation of valuations for probate court and tax filings.

Step 3: Subtract Liabilities

Assets should be valued net of debt to get a clear picture of the estate’s worth. Subtract:

• Mortgages

• Credit card debt

• Car loans

• Personal loans

• Business debts

The remaining value reflects the estate’s net worth for probate purposes.

Step 4: Seek Professional Assistance

Valuing an estate, especially if it involves complex assets like businesses or collectibles, is not a DIY task. Work with:

• Maryland probate attorneys

• Certified appraisers

• Financial planners

This ensures accuracy, compliance, and peace of mind.

Common Challenges in Asset Valuation

Fluctuating Market Conditions

Markets can change rapidly, affecting real estate, stocks, and collectibles. Date-of-death valuations are crucial for accuracy.

Hidden or Overlooked Assets

Assets like digital currencies, intellectual property, or forgotten accounts can complicate inventory creation.

Complex Business Interests

Private businesses require specialized appraisers familiar with Maryland business law.

Disputes Among Heirs

Disagreements over asset value are common. Professional appraisals help prevent or resolve conflicts.

How Blackford & Flohr Can Assist with Asset Valuation in Maryland Probate

At Blackford & Flohr, we understand how overwhelming the probate process can feel — especially when you are navigating asset valuations, tax obligations, and legal deadlines all at once.

Our Maryland probate attorneys offer:

• Guidance in creating accurate asset inventories

• Access to trusted appraisers and valuation experts

• Assistance with probate filings and Orphans’ Court requirements

• Support in minimizing estate tax liability

• Help resolving disputes between heirs

With offices in Severna Park, we proudly serve families throughout Anne Arundel County and across Maryland. Contact us today to speak with an experienced Maryland wills and trusts attorney about your estate planning and probate needs.

Call us at 410-647-6677 or
Fill out our online form to get started.

FAQ: Maryland Probate Asset Valuation

Q: Do I need to value every asset in the estate?
A: Yes. Maryland probate law requires the personal representative to list all assets in the inventory submitted to the Orphans’ Court, regardless of perceived value.

Q: How is the date of valuation determined?
A: Typically, assets are valued as of the date of death. For some estates, alternative valuation dates may apply for tax purposes.

Q: What if I discover new assets after filing the inventory?
A: If new assets are discovered, you must file an amended inventory with the court and potentially adjust the estate’s tax filings.

Q: Can I use online valuation tools for probate?
A: While online tools (like Kelley Blue Book for vehicles) can be a helpful starting point, Maryland probate courts generally require formal appraisals for higher-value assets like real estate, collectibles, or business interests.

Q: What happens if assets are undervalued or overvalued?
A: Incorrect valuations can result in tax penalties, delays in probate, and disputes among heirs. Working with professionals helps ensure accuracy and compliance.