Choosing an estate planning lawyer near me location can feel just as overwhelming as the probate process. In fact, that is probably why you have not started yet. Not only does it force you to think about death and taxes, but you have to find an attorney to confide in about your family and your assets. Oftentimes, clients come to us worried about their finances and their family dynamics.
Our estate planning lawyers at Chesapeake Wills and Trusts are not in the business of judging or comparing our clients. Instead, we want to educate and empower our clients to make the right decisions to protect their nest egg.
The Importance of Working with an Estate Planning Lawyer
Working with an estate planning attorney in Anne Arundel County simplifies the estate planning process of protecting assets, providing for loved ones, and ensuring that your wishes are honored after your death. We help navigate the complexities of estate planning, while tailoring a plan to meet your unique needs and goals. Proper legal guidance ensures that all necessary documents, such as wills and /or trusts, are prepared accurately and in compliance with Maryland laws, avoiding potential pitfalls and conflicts in the future.
Working with an estate planning attorney in Maryland can also help reduce probate costs. Probate is the legal process held in Orphans’ Court in the county where the deceased died. Probate includes settling an estate, which can be lengthy, public, and expensive. Through strategic use of wills, trusts, and other legal instruments, an attorney can minimize probate-related expenses and streamline the process.
Additionally, a well-crafted estate plan can help minimize taxes. A skilled attorney can implement strategies to reduce estate, inheritance, and gift taxes, preserving more of the estate for beneficiaries. These strategies might include tax-efficient trusts, charitable giving, and other advanced techniques tailored to an individual’s circumstances.
Estate Planning Solutions in Anne Arundel County
Estate planning in Anne Arundel County requires careful attention to Maryland’s specific estate planning laws, which differ from those of other states. For instance, Maryland imposes an inheritance tax on non-family relationships and charities, or “collateral heirs” like nieces/nephews, cousins, aunts, and uncles. Maryland also has its own estate tax on top of the federal estate tax. As of 2024,the federal estate tax exempts $13.99 million per person and the Maryland estate tax exempts a threshold of $5 million.
A local attorney can provide personalized guidance by helping you navigate these rules and ensuring that your estate plan complies with Maryland law. We can also help you minimize or eliminate probate costs by utilizing strategies such as revocable living trusts, which avoid the probate process, or non-probate transfers, like payable-on-death accounts, that pass assets directly to beneficiaries without court involvement. If you die without an estate plan, you are intestate, which means that Maryland law governs probate, inheritance taxes, and estate distribution, making it crucial to work with a local attorney familiar with the state’s regulations.
Wills and Trusts: What’s the Difference
A will is a legal document in estate planning, specifying who is the Personal Representative of the estate and how assets will be distributed after death. It also names the guardians for minor children. However, a will has to go through probate. Maryland does have a small estate process for estates that have less than $50k in value, but more than likely if you own a house and have a bank account, your Personal Representative will have to go through probate to access your assets.
A trust, particularly a revocable living trust, completely avoids probate and offers additional benefits. A trust allows assets to be transferred directly to beneficiaries without the need for probate, saving time and costs. It also helps manage assets during the grantor’s lifetime, providing flexibility and privacy in case of incapacity.
Choosing between the two is dependent on your assets, debt, and family situation. Talking this over with an estate planning lawyer can help ease your mind on what needs to be accomplished to give you peace of mind.
Trusts: Protecting and Managing Your Wealth
A trust is a legal entity used to protect and manage assets while you are living. When a grantor of a trust passes away, the trust is able to bypass probate if the trust is funded properly. There are different types of trusts, but the most common are revocable and irrevocable trusts.
Revocable Trust
A revocable trust is a legal entity that not only instructs your trust administrator what to do with your assets when you pass away, but also if you are incapacitated. Unlike a will, which only takes effect after death, a revocable trust offers greater control during your lifetime and can be changed or revoked at any time.
There are three key roles in a revocable trust:
- Grantor: The person who creates the trust and can amend or revoke it.
- Beneficiary: The person who will receive the trust’s assets.
- Trustee: The person responsible for managing and distributing the assets. The grantor can also serve as the trustee but often names a successor trustee to take over in case of incapacity or after death.
In Maryland, creating a revocable trust involves drafting a Declaration of Trust, pour-over will, assigning beneficiaries and trustees, and transferring assets into the trust. Properly funding a trust is important because if done incorrectly, it can affect the effectiveness of the trust entity. It can also land your loved ones in probate court.
Irrevocable trusts
An irrevocable trust is a legal entity that holds property. Essentially, the grantor transfers ownership of their assets to the trust. Once the property is placed in the trust, the grantor no longer owns it and cannot reclaim it. The advantage to this is if the property is not in the name of the grantor, then creditors cannot get access to it. While this may seem restrictive, the structure of an irrevocable trust provides significant benefits, such as protecting assets and achieving specific financial goals.
A key benefit of an irrevocable trust is that it can protect assets from creditors, including nursing homes, especially if it has been in place for at least five years, therefore avoiding the Medicaid look back period. This makes it an effective tool for Medicaid planning to help manage long-term care costs.
Guardianship and Powers of Attorney for Loved Ones
A guardian is not an agent. A guardian is appointed by a Judge and may be contested, in which a Judge then decides who the guardian will be. An agent, or Power of Attorney, is chosen by you. If you do not have a Power of Attorney chosen, a guardian is chosen for you. A guardian has to report any activities or tasks to the court.
There is no assumption that your parent or spouse will take care of you. For example, if you have an adult child in college and they get injured and rendered incapacitated, the parent will have to get guardianship over the adult child. Without Power of Attorney documents, your loved ones may have to go through a lengthy and costly guardianship process to gain control over your finances or make medical decisions for you.
Financial Power of Attorney
A financial Power of Attorney is durable unless otherwise stated in the document. This means you can choose one or two people as your agent and they can help you with your finances whether or not you are incapacitated.
With a properly executed financial Power of Attorney, your agent can handle essential tasks such as paying bills, managing bank accounts, handling investments, and overseeing real estate transactions. This ensures that your financial obligations are met and your assets are protected when you cannot do that yourself.
Maryland law requires the document to be signed before a notary public and two witnesses to be legally valid. Choosing a responsible agent is important, as they will have significant control over your finances. Having a financial Power of Attorney in place provides peace of mind and ensures seamless financial management in case of incapacity.
Medical power of attorney
A medical power of attorney is also called an advance healthcare directive. In Maryland, this document outlines your medical preferences and appoints someone to make healthcare decisions if you become unable to do so. It combines a living will, which details your wishes for end-of-life care, and a medical power of attorney, which designates a trusted agent to make decisions on your behalf.
Without a healthcare directive, your loved ones may face confusion, disagreements, or legal challenges when making medical decisions for you. This document ensures that your preferences regarding life support, resuscitation, and other critical treatments are respected, reducing the emotional burden on family members.
To be legally valid in Maryland, a healthcare directive must be signed in the presence of two witnesses. By having one in place, you maintain control over your medical care, prevent unwanted treatments, and provide clear guidance to your healthcare providers and family in times of crisis.
What to Expect From an Estate Planning Lawyer Near Me
When working with an estate planning attorney in Maryland, you can expect us to guide you through the entire process of creating a comprehensive and legally sound plan. Here’s what to expect:
- Initial Consultation and Assessment: We begin by discussing your assets, family situation, goals, and any specific concerns you may have regarding end of life. We will assess your needs and explain the estate planning process nuances in Maryland, addressing issues such as estate and inheritance taxes, probate, and intestate laws.
- Drafting Key Documents: Based on your goals, the attorney will draft essential legal documents like a last will and testament, revocable living trusts, advance directives, and powers of attorney. These documents ensure your wishes regarding asset distribution, healthcare, and financial decision-making are legally enforceable and honored.
- Minimizing Probate and Taxes: An estate planning attorney will help structure your estate to minimize the costs and delays of probate in Maryland. They may recommend establishing a trust to avoid probate and implementing strategies to reduce estate taxes, including charitable gifts or the use of tax-exempt accounts.
- Beneficiary Designations: We will ensure that you’ve designated beneficiaries for your assets, including life insurance policies, retirement accounts, and bank accounts, to ensure they pass outside of probate.
- Ongoing Support and Updates: Estate plans need to be reviewed and updated regularly. We offer the Chesapeake Care Plan for our trust client. thatIt provides ongoing support to revise your plan as circumstances change (e.g., marriage, divorce, births, or changes in the law).
By working with an estate planning attorney at Chesapeake Wills and Trusts, we ensure that your estate plan reflects your wishes, complies with state laws, and protects your loved ones.
What To Bring To an Estate Planning Consultation
To make the most of your estate planning consultation, bring the following documents:
- Existing Estate Planning Documents: If you have a will, trust, power of attorney, or healthcare directive, bring copies for review.
- Financial Information: Bank statements, retirement accounts, investment portfolios, and insurance policies to assess your assets.
- Property Records: Deeds, mortgage statements, and titles for real estate and vehicles.
- Debts and Liabilities: A list of outstanding loans, credit card balances, and other financial obligations.
- List of Beneficiaries and Decision-Makers: Names and contact details of those you wish to inherit assets or act on your behalf.
Being prepared allows your attorney to craft a customized estate plan that aligns with your goals and protects your legacy.
Take the Next Step with our Estate Planning Lawyer Near Me Location
A Maryland estate planning attorney near you can tailor your estate plan to meet your specific goals, whether that’s reducing estate taxes, ensuring your loved ones are taken care of, or making provisions for local real estate. By understanding your unique circumstances and the local legal landscape, a local attorney ensures that your estate plan reflects your wishes and minimizes legal complications in the future.
Schedule a consultation to start the journey to protect your family and secure your legacy with Chesapeake Wills and Trusts Estate Planning Lawyer.