Estate planning consists of making preparations for distribution of a person's assets after he or she dies. Most people in Maryland look at assets as tangible physical items, such as houses, real estate or even cash money. However, people tend to overlook digital assets when making plans for estate administration. This is a mistake which can have significant consequences for intended beneficiaries.
Life is full of the unexpected. However, this can also be true about death, especially when attempting to make plans for estate administration in Maryland or in any other state. Although it is impossible to tell the future, a good estate plan should consider as many potential scenarios as possible in order to avoid future financial and legal problems. This can make the difference between a smooth transfer of assets to intended beneficiaries and a prolonged litigation process in probate court.
There has been plenty of talk among financial professionals regarding the new changes to the federal estate tax and how it will affect those planning their estates. The new law has set the federal exemption for the estate tax at $5.25 million for individuals and $10.5 million for couples. This has many people in Maryland and elsewhere believing that only the wealthiest people need to worry about planning for estate administration. However, there are a variety of issues which still need to be addressed even if one is not wealthy enough to be affected by the estate tax.
Planning for retirement is important for people who want to ensure comfortable living during the final years of their lives. However, changes in estate administration laws can make planning for retirement more challenging in Maryland and elsewhere. The recent budget proposal from the White House which would cap contributions to tax-deferred accounts and financial vehicles may significantly change the estate planning landscape for many approaching retirement age.
When a person dies, that person's property and assets will need to be distributed to their rightful heirs. However, if one has failed to do proper estate planning preparations the state of Maryland will decide how to divide the decedent's estate. Most people would rather not let the government decide what to do with their belongings after death. This is why it is important to create a last will and testament in order to instruct who should inherit the property in a person's estate.