3 Ways Fiduciaries Got in Trouble — And What Maryland Personal Representatives Can Learn From Them

If you have been named the Personal Representative of an estate in Maryland, you have been given a lot of authority.

You have also been given a serious responsibility.

Maryland law considers a Personal Representative a fiduciary.

In simple terms, you are managing money and property for the benefit of other people. You have a duty to protect the estate and fairly consider the interests of beneficiaries, heirs and creditors.

Most Personal Representatives aren't trying to do anything wrong.

The bigger danger is making a decision without understanding the responsibility that comes with the job.

That becomes especially important when the estate owns a house.

Before you sell an estate property, accept a cash offer, spend estate money or distribute assets, it helps to understand what can happen when fiduciaries make bad decisions.

Here are three important lessons.

---

1. An Estate Administrator Took More Than $500,000 Intended for Children

This is an extreme example, but it shows just how seriously fiduciary responsibility can be treated.

Texas attorney Karen Kay Hogan was appointed administrator of the estates of Jason and Emily Evans after their deaths left six children behind.

According to prosecutors, Hogan transferred approximately $542,000 from estate accounts into accounts that had no legal right to the money.

The transfers were made without court permission.

The problem was eventually discovered during a probate court audit.

Hogan pleaded guilty in 2026 to charges involving misapplication of fiduciary property and exploitation of children.

What can a Maryland Personal Representative learn from this?

The obvious lesson is: estate money is not your money.

But the bigger lesson goes beyond cash.

An estate may contain bank accounts, investments, vehicles, personal belongings, business interests, and real estate.

You may have control over those assets because you are the Personal Representative.

But control does not mean ownership.

You are managing those assets on behalf of the estate.

That distinction matters.

---

2. A Fiduciary Sold Homes to Her Business Partner

This example is particularly important when we talk about selling estate real estate.

Connecticut attorney Kristan Exner served as a court-appointed conservator and professional fiduciary.

According to reporting by CT Insider, Exner came under investigation after properties belonging to people under her care were sold to her business partner.

In one case, records showed a home was sold for $334,900.

Six months later, the buyer sold it for $395,000.

Reporting later uncovered that Exner and the buyer had formed a company together months before the original sale.

CT Insider subsequently reported that a grievance panel was investigating Exner's conduct involving property sales to her business partner.

It is important to be clear: this was a Connecticut conservatorship matter. It was not a Maryland probate estate. The laws and facts are different.

But the fiduciary lesson is important.

Conflicts of interest can create serious questions.

Now imagine something similar happening with an estate property in Montgomery County.

You are the Personal Representative.

The house needs work.

Someone you know offers the estate $450,000 cash.

They tell you: "Don't clean anything. Don't make repairs. Take what you want and leave everything else. We can close quickly."

That sounds pretty good.

So you sell.

Three months later, the buyer puts the house back on the market for $650,000.

Now imagine being one of the beneficiaries.

You might start asking questions.

Why was the house sold for $450,000?

Was an appraisal obtained?

Were comparable sales reviewed?

Was the property exposed to the open market?

Were other offers considered?

What repairs did the property really need?

What could the estate have received if the house had been properly prepared and marketed?

And perhaps the most uncomfortable question: did the Personal Representative have any relationship with the buyer?

These are questions that are much easier to answer before a property is sold.

---

3. You Don't Have to Steal Money to Create a Fiduciary Problem

This may be the most important lesson for Maryland Personal Representatives.

You don't have to steal $500,000.

You don't have to sell a house to your business partner.

A Personal Representative can create problems simply by failing to properly carry out the responsibilities of the position.

The Maryland Register of Wills puts it plainly.

A Personal Representative has a fiduciary obligation to settle the estate and distribute its assets properly.

Maryland describes the position as one involving confidence, trust, and good faith.

The state also warns that a Personal Representative may face personal liability for failing to meet the required standard of care.

That should get every Personal Representative's attention.

But it shouldn't scare you.

It should encourage you to make informed decisions and keep good records.

---

What Does Maryland Law Actually Require?

Maryland Estates and Trusts section 7-101 provides an important standard.

Maryland law says a Personal Representative is a fiduciary and has a general duty to settle and distribute an estate "as expeditiously and with as little sacrifice of value as is reasonable under the circumstances."

Those words are important.

Notice that Maryland law does NOT say: get the highest possible price regardless of cost, time or risk.

But it also doesn't say: take the easiest offer and get rid of the property.

The standard is what is reasonable under the circumstances.

That distinction can become very important when an estate owns real estate.

---

What Does Fiduciary Duty Mean When Selling an Estate House?

Let's use a simple example.

Suppose an estate owns a house in Montgomery County.

The property hasn't been updated in 30 years.

There are rooms filled with belongings.

The carpet needs replacing.

The walls need paint.

The kitchen is dated.

The yard is overgrown.

An investor offers $500,000 CASH. No repairs. No clean-out. No inspections. Quick closing.

That could be an excellent solution.

But before accepting it, there's another question worth asking: what could the estate receive if the property were properly prepared and marketed?

Suppose an experienced real estate agent believes the property could sell for approximately $700,000 after $40,000 in carefully selected improvements.

Now you have something to compare.

---

$500,000 Cash vs. $700,000 Retail Sale

OPTION 1: CASH OFFER

• Sale price: $500,000
• Repairs: $0
• Clean-out: $0
• Preparation time: Minimal
• Risk: Lower
• Closing: Potentially fast

OPTION 2: PREPARE AND MARKET

• Potential sale price: $700,000
• Improvements: $40,000
• Clean-out: Must be calculated
• Carrying costs: Must be calculated
• Real estate expenses: Must be calculated
• Time: Longer
• Risk: Higher

Which one is better? We don't know yet.

And that's exactly the point.

A $700,000 sale doesn't automatically make Option 2 better.

There may be commissions, repairs, taxes, insurance, utilities and months of carrying costs.

The market could change.

Repairs could uncover additional problems.

The property could sell for less than expected.

On the other hand, accepting $500,000 simply because it is easy could potentially leave a significant amount of money on the table.

A Personal Representative should understand both options.

---

Don't Just Compare Sales Prices

This is one of the biggest mistakes I see people make when evaluating estate real estate.

The number that matters isn't necessarily the sales price.

It's the estimated NET TO THE ESTATE.

For example:

If an investor pays $500,000 and the estate nets $490,000, that's one number.

If preparing and marketing the property produces a $700,000 sale but the estate spends $75,000 getting there, that's another number.

Now you can make a more informed comparison.

You can also document why you chose one option over another.

That documentation could become very valuable if a beneficiary later asks: "Why did you sell the house that way?"

For more on comparing selling strategies, see The Complete Guide to Selling a Probate House and Cash Offer vs. Listing vs. Renovate: Comparing Your Options.

---

7 Questions to Ask Before Selling a Maryland Estate Property

Before making a decision, I suggest Personal Representatives answer these seven questions:

1. What is the house worth today in its current condition? Not what Zillow says. Not what a neighbor thinks. What would qualified buyers realistically pay for it today?
2. What could the house sell for if properly prepared? Sometimes the difference is small. Sometimes it is substantial. You need to know.
3. What improvements actually make financial sense? Not every estate house needs a renovation. Sometimes paint, flooring, cleaning, landscaping and staging are enough. The goal isn't to build your dream house. The goal is to determine which improvements could produce a reasonable return for the estate.
4. What will those improvements cost? Get real numbers. Guessing doesn't help.
5. How long will everything take? Time costs money. Consider insurance, taxes, utilities, lawn care, maintenance and other carrying expenses.
6. What are the risks? A cash offer may provide certainty. Preparing the property may create a higher potential return but also introduces additional time and risk. Both matter.
7. What will the estate NET? Put the options side by side. Then make the decision.

For more on pricing, read How to Price a Probate House in Maryland.

---

"I Just Want the House Gone."

I understand this feeling.

I've worked with families dealing with homes containing 30, 40 or even 50 years of belongings.

Sometimes the Personal Representative lives hundreds of miles away.

Sometimes there are family disagreements.

Sometimes the house needs major repairs.

Sometimes the Personal Representative is grieving while trying to handle attorneys, creditors, paperwork, family members and a property they never expected to manage.

Getting a cash offer and being finished with the house can sound very attractive.

And sometimes that is the right answer.

But there's an important difference between:

"I took $500,000 because I just wanted it gone."

and:

"We compared the as-is offer with the estimated cost, time, risk and potential return of preparing the property. Based on those numbers, we determined the $500,000 offer was reasonable for the estate."

The result might be exactly the same.

But the decision-making process is very different.

---

Can a Personal Representative Be Personally Liable in Maryland?

Potentially.

The Maryland Register of Wills specifically warns that a Personal Representative may incur personal liability for failing to meet the required fiduciary standard.

That does NOT mean you become personally liable every time something goes wrong.

Real estate isn't predictable.

A buyer can walk away.

An inspection can uncover a major problem.

A roof can start leaking.

An appraisal can come in low.

The market can change.

A reasonable decision can still produce a bad result.

That's why the goal isn't perfection.

The goal is making a reasonable and informed decision based on the circumstances.

For legal questions concerning your responsibilities, you should speak with a qualified Maryland probate attorney.

For questions concerning the value and sale options for estate real estate, you should get reliable real estate information before deciding what to do.

---

Can a Personal Representative Sell an Estate House Below Market Value in Maryland?

There isn't a simple yes-or-no answer that applies to every estate.

A lower offer may make sense because of property condition, major structural problems, carrying costs, lack of estate funds, creditor issues, timing, market conditions, certainty of closing, or other risks.

That's why simply asking "What's the highest offer?" may be the wrong question.

A better question is: "Which option provides the most reasonable outcome for the estate after considering price, expenses, time and risk?"

That is a much better conversation.

---

Should a Personal Representative Get More Than One Opinion of Value?

When real estate represents a substantial portion of an estate, getting reliable information before selling can be valuable.

That might include an appraisal, a comparative market analysis or other professional valuation advice depending on the circumstances.

You may also want to understand two very different numbers:

What would an investor pay today?

AND

What might the property sell for if properly prepared and marketed?

Those numbers give you choices.

---

Selling a Probate Home in Montgomery County, Maryland?

If you are the Personal Representative of an estate with a home in Montgomery County or elsewhere in Maryland, you don't have to decide how to sell it before talking with me.

I can help you understand the real estate side of the decision.

We can look at the property's current condition, recent comparable sales, its potential as-is value, its potential market value, repairs or improvements that may make sense, estimated costs, possible cash-sale options, traditional market-sale options, and the estimated net to the estate.

Then you decide what makes sense.

There is no obligation.

There is no pressure to list the property.

And if selling as-is is the best option, I'll tell you that.

The purpose of the conversation is simple: give you better information before you make a major decision involving the estate.

Schedule a no-obligation call: https://calendly.com/cormier/interview

---

Frequently Asked Questions

---

About Marc Cormier

Marc Cormier is a Maryland real estate professional specializing in probate and estate property sales. He helps Personal Representatives understand their options for estate real estate, including as-is sales, property preparation, repairs, staging and traditional market sales.

For more information or to schedule a no-obligation conversation, visit GuideToProbate.com.