Estates and Trusts – Claims Against an Estate – Statute of Limitations
Impact
The bill alters existing laws which previously set a cutoff for claims at six months post-death or two months after notification from the personal representative. By extending the time allowed for presenting claims, the bill aims to offer creditors a more equitable opportunity to seek redress when estates are opened. This could result in a considerable change for how estates are settled in Maryland, potentially increasing the number of claims filed against estates, especially in cases where claimants were previously barred from presenting their claims due to tight deadlines.
Summary
House Bill 802 addresses the statute of limitations surrounding claims against a decedent's estate in Maryland. The bill proposes a significant change whereby claims that arise before an individual's death can now be presented against the deceased’s estate within a time frame that extends to either the termination of the applicable statute of limitations or one year after the personal representative's appointment. This adjustment aims to provide more leeway for creditors who might have been negatively impacted by the previous stringent timelines for filing claims following a decedent's death.
Contention
While the bill has the intent of making the claims process more accessible for creditors, it is likely that there will be varied opinions on its implications. Proponents may argue that extending the statute of limitations for claims helps ensure justice for debtors who are justly owed compensation. However, opponents could raise concerns regarding the validity of claims filed many years posthumously, which may unnecessarily complicate the closing of estates and prolong committal proceedings, thus impacting heirs adversely.