Why Protecting Estate Property Is One of a Personal Representative’s Most Important Duties

When someone dies owning real estate in Maryland, determining what eventually happens to the property is only part of the challenge.

There is another question that can require immediate attention:

Who is protecting the property right now?

For a Personal Representative administering an estate, protecting estate assets can include taking appropriate steps to safeguard real property while the estate is being administered.

That responsibility can become especially important when the property is vacant.

What Can Happen to an Unattended Estate Property?

A house can deteriorate surprisingly quickly without regular attention.

A minor plumbing leak can become major water damage. An HVAC problem can create additional maintenance issues. Overgrown landscaping can signal a vacant property.

Other concerns can include unauthorized entry, theft, accumulating mail, code violations, insurance issues, and deterioration of personal property inside the home.

These problems can potentially reduce the value of an important estate asset.

That is why assessing the property early can be valuable.

Five Areas Personal Representatives Should Consider

1. Secure the Property

Determine who has access to the home and whether the property is adequately secured.

Depending on the circumstances, this might involve reviewing keys, locks, alarm systems, garage access, exterior doors, windows, and other entry points.

2. Review Insurance

Insurance should not be overlooked.

A property that was previously owner-occupied may now be vacant or unoccupied following the owner's death. The Personal Representative should contact the appropriate insurance professional about the property's circumstances and coverage.

3. Keep Essential Services Under Control

Depending on the property and season, certain utilities may need to remain operational.

Electricity, water, heating, cooling, security systems, sump pumps, and other systems may play a role in protecting the property.

The goal isn't necessarily to maintain everything exactly as it was before. It is to prevent avoidable damage while the estate determines what happens next.

4. Document the Property's Condition

Documentation can be extremely valuable.

Photographs, videos, inventories, repair estimates, contractor observations, and property-condition information can help establish what existed at a particular point in time.

This can also help Personal Representatives communicate with attorneys, beneficiaries, contractors, appraisers, real estate professionals, and other parties involved with the estate.

5. Understand the Property's Value Before Making Major Decisions

One of the biggest mistakes an estate can make is spending money without first understanding the property's market position.

Should the estate renovate?

Make limited repairs?

Complete a clean-out?

Sell the property as-is?

Hold the property temporarily?

There isn't one answer that works for every estate.

A better starting point is understanding the property's approximate value in its current condition, what improvements might cost, and whether those improvements are likely to generate enough additional value to justify the expense.

Preservation vs. Renovation

This distinction is especially important.

Property preservation focuses on protecting the estate's existing asset.

Renovation involves investing additional estate resources in an attempt to improve the property.

Those are not necessarily the same decision.

A Personal Representative may determine that certain repairs are necessary to protect the property while deciding that a full renovation isn't in the estate's best interest.

This is where good information becomes critical.

Create a Property Action Plan

When an estate includes Maryland real estate, Personal Representatives can benefit from organizing the property into four categories:

Protect: What needs immediate attention to prevent loss or damage?

Evaluate: What is the property's current condition and estimated market value?

Prepare: What cleaning, maintenance, repairs, or documentation should be completed?

Decide: Should the estate hold, improve, distribute, or sell the property?

This framework can turn an overwhelming property into a series of manageable decisions.

The Goal Is to Protect the Estate

A Personal Representative doesn't have to become a contractor, property manager, appraiser, and real estate expert overnight.

But understanding the condition and value of estate real estate early in the process can make future decisions much easier.

The objective is straightforward:

Protect the estate. Preserve the property's value. Make informed decisions about what happens next.

If you're serving as a Personal Representative and an estate includes real property in Maryland, I help Personal Representatives and families evaluate estate real estate, understand their options, coordinate property-related needs, and prepare for a potential sale.

Fred Dorsey
The Prince of Probate