§ 7-401. Powers and authority of personal representative
West's Annotated Code of MarylandEstates and TrustsEffective: October 1, 2019
Effective: October 1, 2019
MD Code, Estates and Trusts, § 7-401
§ 7-401. Powers and authority of personal representative
(a)(1) In the performance of a personal representative's duties pursuant to § 7-101 of this title, a personal representative may exercise all of the power or authority conferred on the personal representative by statute or in the will, without application to, the approval of, or ratification by the court.
(b) A personal representative may retain assets owned by the decedent pending distribution or liquidation, including those in which the representative is personally interested or which are otherwise improper for trust investment.
(c)(1) A personal representative may hold a security in the name of a nominee or in other form without disclosure of the interest of the estate.
(d) A personal representative may receive assets from fiduciaries or other sources.
(e) A personal representative may deposit funds for the account of the estate, including money received from the sale of assets, in checking accounts, in insured interest-bearing accounts, or in short-term loan arrangements which may be reasonable for use by a trustee.
(f) A personal representative may agree to deposit assets of the estate with a financial institution so that the assets cannot be withdrawn or transferred without:
(g) A personal representative may satisfy written charitable pledges of the decedent.
(h) A personal representative may pay a valid claim as provided in this article or effect a fair and reasonable compromise with a creditor or obligee, or extend or renew an obligation due by the estate.
(i) A personal representative may pay the funeral expenses of the decedent in accordance with the procedures provided in § 8-106 of this article, including the cost of burial space and a tombstone or marker, and the cost of perpetual care.
(j) A personal representative may pay taxes, assessments, and other expenses incident to the administration of the estate.
(k) A personal representative may insure the property of the estate against damage, loss, and liability, and the personal representative against liability in respect to third persons.
(l) A personal representative may vote stocks or other securities in person or by general or limited proxy.
(m) A personal representative may sell or exercise stock subscription, conversion or option rights, consent to or oppose, directly or through a committee or agent, the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise.
(n) A personal representative may invest in, sell, mortgage, pledge, exchange, or lease property.
(p) A personal representative may:
(q) If assets of the estate are encumbered by a mortgage, pledge, lien, or other security interest and if it appears to be in the best interests of the estate, a personal representative may pay the encumbrance, or convey or transfer the assets to the creditor in satisfaction of the security interest of the creditor, in whole or in part, whether or not the holder of the encumbrance has filed a claim.
(r) Regardless of a contrary provision in the will, a personal representative may execute, on the written demand of the owner of a redeemable leasehold or subleasehold estate, a full and valid conveyance of the reversion or subreversion held by the estate.
(s) A personal representative may continue an unincorporated business or venture in which the decedent was engaged at the time of the decedent's death:
(t) A personal representative may incorporate a business or venture in which the decedent was engaged at the time of the decedent's death if none of the probable distributees of the business who are competent adults objects to its incorporation and retention in the estate.
(u) A personal representative may convert a sole proprietorship the decedent was engaged in at the time of the decedent's death to a limited liability company and may become a limited partner in any partnership or a member in any limited liability company, including a single member limited liability company.
(v) A personal representative may perform the contracts of the decedent that continue as obligations of the estate, and execute and deliver deeds or other documents under circumstances as the contract may provide.
(w) A personal representative may exercise options, rights, and privileges contained in a life insurance policy, annuity, or endowment contract constituting property of the estate, including the right to obtain the cash surrender value, convert the policy to another type of policy, revoke a mode of settlement, and pay a part or all of the premiums on the policy or contract.
(x) A personal representative may employ, for reasonable compensation, auditors, investment advisors, or persons with special skills, to advise or assist in the performance of the administration duties of the personal representative.
(y)(1) A personal representative may prosecute, defend, or submit to arbitration actions, claims, or proceedings in any appropriate jurisdiction for the protection or benefit of the estate, including the commencement of a personal action which the decedent might have commenced or prosecuted, except that:
(ii) In an action instituted by the personal representative against a tort-feasor for a wrong which resulted in the death of the decedent, the personal representative may recover the funeral expenses of the decedent up to the amount allowed under § 8-106(c) of this article in addition to other damages recoverable in the action.
(z) If the decedent died testate, a personal representative may designate the personal representative on documents as an executor, or if the decedent died intestate, as an administrator.
(aa) A personal representative may make partial and final distributions, in cash, in kind, or both, from time to time during the administration.
(bb) If the estate is of a physician, podiatrist, optometrist, or dentist who was a sole practitioner, the administrator shall follow the notice requirements under § 4-305 of the Health-General Article before the destruction or transfer of any medical records of a patient of the decedent.
(cc)(1) To comply with an environmental law, a personal representative may:
(i) Inspect property held by the personal representative, including any type of interest in a sole proprietorship, partnership, limited liability company, or corporation, and any assets owned by a sole proprietorship, partnership, limited liability company, or corporation to determine compliance with an environmental law and respond to an actual or potential environmental liability relating to the property;
(2) If a personal representative acts prudently and in good faith, the personal representative is not liable to a person with an interest in assets held by the personal representative for a decrease in the value of the assets for taking action under this subsection or otherwise taking action to comply with an environmental law or reporting requirement.
(dd) A personal representative may donate a conservation easement on any real property in order to obtain the benefit of the estate tax exclusion allowed under § 2031(c) of the United States Internal Revenue Code of 1986, as amended, if:
Credits
Added by Acts 1974, c. 11, § 2, eff. July 1, 1974. Amended by Acts 1986, c. 695; Acts 1987, c. 11, § 1; Acts 1994, c. 480, § 2, eff. Oct. 1, 1994; Acts 1995, c. 424, § 1, eff. Oct. 1, 1995; Acts 1999, c. 663, -, eff. Oct. 1, 1999; Acts 2000, c. 61, §§ 1, 7, eff. April 25, 2000; Acts 2000, c. 603, § 1, eff. July 1, 2000; Acts 2001, c. 29, § 1, eff. April 10, 2001; Acts 2006, c. 531, § 1, eff. July 1, 2006; Acts 2007, c. 18, § 1, eff. Oct. 1, 2007; Acts 2007, c. 19, § 1, eff. Oct. 1, 2007; Acts 2009, c. 36, § 1, eff. Oct. 1, 2009; Acts 2012, c. 66, § 6, eff. April 10, 2012; Acts 2014, c. 207, § 1, eff. Oct. 1, 2014; Acts 2019, c. 197, § 1, eff. Oct. 1, 2019.
Formerly Art. 93, § 7-401.
MD Code, Estates and Trusts, § 7-401, MD EST & TRST § 7-401
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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