Fiduciary Obligation of Personal Representative—Generally

• Jurisdiction: Maryland

I. DUTIES AND OBLIGATIONS OF PERSONAL REPRESENTATIVE

A. [§ 3.1] Fiduciary Obligation of Personal Representative—Generally

A personal representative is a fiduciary. He or she is under a general duty to settle and distribute the estate of the decedent in accordance with the terms of the will and the applicable law as expeditiously and with as little sacrifice of value as is reasonable under the circumstances. The personal representative shall use the authority conferred by the applicable law, by the terms of the will, by orders in proceedings to which he or she is a party, and by the equitable principles generally applicable to fiduciaries, fairly considering the interests of all interested persons and creditors. Md. Code Ann., Estates and Trusts § 7-101(a) (2017 & Supp. 2020) (hereinafter EST. & TRUSTS § ___).

The standard of care required of a fiduciary includes:

1. The exercise of the care, skill, and diligence of a reasonably prudent person dealing with his or her own property;

2. The exercise of good faith and loyalty to all the beneficiaries;

3. The lack of self-dealing;

4. The exercise of reasonable watchfulness over investments; and

5. The maintenance of full, accurate, and precise records.

The above paragraph was cited with approval in Kann v. Kann, 344 Md. 689, 690 A.2d 509 (1997); Bresnahan v. Bresnahan, 115 Md. App. 226, 693 A.2d 1, cert. denied, 346 Md. 629, 697 A.2d 913 (1997); and Hartlove v. Maryland School for the Blind, 111 Md. App. 310, 681 A.2d 584, vacated on other grounds and remanded, 344 Md. 720, 690 A.2d 526 (...