Probate in Maryland – Small Estates Versus Regular Estates

Probate is the process by which a deceased person’s financial affairs are concluded and their assets are transferred to their legatees (if through a will) or heirs (if without a will).  Because many people pass away with minimal probate assets, the State of Maryland provides a less burdensome process by which assets can be transferred for such estates.

When the value of a decedent’s property subject to Maryland probate is less than $50,000 (or less than $100,000 when a surviving spouse will be the sole legatee or heir), the estate under is allowed to be considered a “small estate” and use a simplified set of probate rules.  

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How Long Should You Keep Tax Records?

A popular client question has always been, “How long should I keep my tax returns?”  My answer is something many neither expect nor want to hear. Many tax professionals, and even the IRS, suggest discarding tax documents after a certain period of time: 3 years, 6 years, etc. after filed.  My answer is usually, “Never.”

Those saying a certain number of years usually base it upon a particular IRS statute of limitations deadline.  IRS can audit a return after it’s been filed for 3 years under normal circumstances, for 6 years if there is a “substantial understatement”, and forever if there’s fraud.  Therefore, since you’re confident you’re not committing fraud, you should be safe at least after six (6) years, right? No.

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