The Law Offices of Scott Alan Morrison, P.A.Frederick MD Probate Lawyer | Contest a Will in Maryland | Estate Planning Attorney2024-02-29T21:02:47Zhttps://www.samlawoffice.com/feed/atom/WordPressOn Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=478752024-02-29T21:02:47Z2024-02-16T22:17:27Zestate plan components, you can better secure your legacy and alleviate potential burdens on your family. You’ll want to consider certain issues primarily as you move forward in this regard.
Passing down your assets
Passing down your assets involves determining how your property, investments and personal items will be distributed among your heirs and beneficiaries. Utilizing tools like wills and trusts allows you to specify your wishes, potentially minimize estate taxes and protect your assets from creditors. This planning helps ensure that your estate is passed on according to your wishes and can also expedite the probate process.
Planning for your medical care
Decisions about your medical care are a critical aspect of estate planning. By establishing a healthcare directive and appointing a durable power of attorney for healthcare, you can ensure your medical wishes are followed if you can’t communicate them or make them for yourself. This gives you control over your healthcare decisions and relieves your loved ones from making these difficult choices during emotional times.
Taking care of your financial matters
Managing your financial affairs is integral to your estate plan. A durable power of attorney for finances allows you to appoint someone you trust to handle your financial transactions and decisions if you're incapacitated. This ensures that your bills are paid, your investments are managed, and your financial responsibilities are taken care of, protecting your estate and providing for your dependents without interruption. This power of attorney is voided when you pass away because those duties are moved to the estate administrator at that time.
This comprehensive approach can help to safeguard your interests and wishes and provides invaluable guidance and support to your loved ones during challenging times. Working with a legal representative to set everything up can help to ensure that your wishes are clearly articulated and are ultimately enforceable.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=478712023-11-21T11:55:58Z2023-11-21T11:55:58ZMaryland law dictates how such an estate should be managed
Someone who dies without leaving behind estate planning instructions has died intestate. There are clear instructions to guide the probate courts and the personal representative of their estate in the distribution of their assets.
An individual's spouse typically has the strongest right of inheritance, although they will often share the estate with the children of the deceased individual. How much of the estate spouses and children receive will depend on whether the spouse is also the legal or biological parent of the children who inherit. If someone has only a surviving spouse, they inherit everything. The same is true of children when someone isn't married.
When people die without having spouses or children, then other family members May inherit from their estates. Parents can inherit from someone's estate, as can siblings if there are no surviving parents. Maryland state law used to specifically prioritize the oldest brother of the decedent, but that has since changed. All siblings generally have the same degree of priority during intestate succession.
If someone dies without any close family members, the state may transfer their property to more distant relatives. Although it is quite rare, if someone has no relatives, their property may eventually become the property of the state itself.
Estate planning can be particularly important if someone wants to provide resources for friends, romantic partners or charitable causes. Understanding the basics of Maryland probate law can sometimes help people see the value in estate planning.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=478702023-10-02T20:01:14Z2023-10-02T20:01:14ZWhat is planned giving?
The estate planning process has many different components. Planned giving can benefit your favorite charities, reduce income taxes when you are still alive, and possibly reduce estate taxes for your heirs. It's one of the more thoughtful components of your legacy, as you'll also have to consider how much of your assets you want to set aside for your beneficiaries, along with how much money you will need to live on for the remainder of your life.
Planned giving has many options
You don't have to bequeath money to your charity. Most Americans have about 93% of their wealth tied up in real estate, vehicles, and other non-cash properties. Leaving an item to a charity is feasible in some circumstances, as organization executives can sell the item and use the money from the proceeds to benefit their non-profit. Structuring planned giving can also involve complex structures that include charitable gift annuities. Remainder, annuity, and lead annuity trusts, among other forms. Consider which assets you want to leave to your favorite organization before determining its structure in your estate plan.
Securing your legacy
The primary reason for estate planning is to secure your wealth and legacy. Before including planned giving in your estate, ensure that you have adequately taken care of beneficiaries with trust, retirement account designations, investment accounts and similar assets. If you are unsure what you want to leave to one or more charities, you can always add it later to your plan.
Consider working with qualified financial experts to determine what assets you should donate and what form they should be in. A certified financial planner can help you decide what assets will be most beneficial for current income taxes and estate taxes for your heirs so you can make an informed decision based on your wishes.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=478592023-05-26T19:36:56Z2023-05-26T19:36:56ZWhat is an attorney-in-fact?
An attorney-in-fact is someone who is granted the powers of attorney over another, and it's one of the essentials of estate planning. The person granting the powers of attorney is known as the principal, and the attorney-in-fact is also known as an agent.
Whoever is granted the powers of attorney will have the legal right to make decisions regarding business, finances, or medical care. Despite the title, the designated agent doesn't need to be a lawyer or have specialized legal knowledge.
Most people choose a family member, often the next of kin, but the attorney-in-fact can be anyone who's trustworthy and responsible enough to make good decisions on behalf of the principal. The principal can also designate a group of people who must make decisions by consent.
For example, the patriarch of a family can name all of their children, who will then make decisions about the parent's medical care or other determinations. This can be done by majority or unanimous vote, depending on how the powers are established.
Choosing the right power of attorney
There are several types of powers of attorney, so one can be chosen according to the life circumstances involved. For example, a general power of attorney has broader powers over decision making and can be ended at the principal's request.
This is the type that's often selected for members of the military when they're serving overseas and is usually granted to a spouse so they can act on the principal's behalf to:
Purchase or cancel life insurance
Sign contracts
Make business or financial decisions
A durable power of attorney is the designation for an agent to make financial or medical decisions when someone becomes incapacitated. This one cannot be terminated except by a judge in cases involving malfeasance.
Special powers of attorney are usually granted situationally. For instance, a board member or business owner could designate a special POA to an agent so they can vote on issues or make pre-determined business decisions in their absence.
Healthcare powers of attorney are granted to someone to make decisions about medical care if the principal becomes incapacitated. This is commonly granted to a spouse or adult child.
Decisions made by an attorney-in-fact can be pre-determined by the principal, such as outlining preferences through a living will, to ensure that any decisions are aligned with the principal's wishes. Being specific can help prevent conflict between family members and ensure that your desires are carried out.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=477322023-05-08T08:29:14Z2023-04-11T23:51:07ZWhat Are The Benefits Of A Trust?
Another estate planning option is to establish a trust. This can give you more freedom and control over how your grandchildren receive the funds and when they get them.
You can often specify the way the funds will be used. This allows you to spread their inheritance out so that they get them at the times when they'll need the money the most. This might include milestones such as when they graduate from college or get married.
When you use a trust, it can serve as a way to prevent an inheritance from being depleted. This commonly can happen when the inheritors aren't financially literate, but it's not hard for anyone to deplete their funds when they run into financial difficulties.
Trusts are also there to assist your grandchildren so they can reach certain goals. Whether they want to buy a house or start their own business, this is one way to help make it happen for them.
When you establish a trust during your lifetime so you can transfer funds to your grandchildren, it usually comes in the form of an irrevocable trust. This means that once it's formed, you generally can't go back and change things or reclaim the funds.
Make Sure To Find The Right Trustee
Be careful with your trustee selection. This is the person or entity who usually has to give approval for the funds from the trust to be distributed. The trustee also handles the reporting and recordkeeping
In some cases, a member of your family can fill this role. However, it might be a good idea to go with a third party because they may be able to offer a more objective viewpoint.
When you form a trust, it's important to think carefully about what your estate planning objectives are. A trust can be a helpful tool to pass your wealth down to your grandchildren and benefit them in a variety of ways.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=477312023-05-08T08:33:42Z2023-04-10T14:16:05Zaccording to CNBC, are three of the most common myths many Americans (including here in Frederick) still have about estate planning:
Only Wealthy People Need Estate Planning
People with extensive assets and high incomes should protect their wealth with a will, trust and other estate planning documents. But really, estate planning can benefit any adult. Having a plan in place lets you choose who will inherit your assets and what they will get. Other tools, like powers of attorney and advance directives, give you greater control over your finances and healthcare if you ever become incapacitated.
Estate Planning Is Too Difficult
It can seem confusing or even overwhelming if you are unfamiliar with Maryland estate planning law. Fortunately, you can seek help from a trusted estate planning professional. An estate planning attorney will walk you through the process, do the necessary paperwork for you and advise you on how to customize your plan to suit your age, family and long-term goals.
It Costs Too Much
Hiring an estate planning attorney costs some money in the short term, but can save your family quite a bit long-term. Probate costs time and money. And If your estate is large enough, it might qualify for state and federal estate taxes. Smart estate planning can help your estate avoid or at least minimize the impact of these costs and delays. Estate planning can also give you peace of mind knowing that your assets will go to the exact people you wish.
If you have other concerns about estate planning, a free consultation with an estate planning lawyer should answer your questions.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=477302023-05-08T08:34:45Z2022-10-01T02:54:23ZReview Your Life Insurance Policy
A life insurance policy can help provide financial security for your family in the event of your death. Make sure you have an up-to-date life insurance policy in place and review your coverage periodically to make sure it still meets your needs.
If you don't have life insurance, now is a good time to consider buying a policy. Term life insurance is generally the most affordable option for new parents, and it can provide much-needed financial protection for your family.
Create Or Update Your Will
If you don't have a will, now is the time to create one to help ensure that your assets get distributed according to your wishes in the event of your death. If you already have this estate planning document, be sure to review it and update it as needed.
You should also consider creating a living will, which can spell out your medical treatment preferences in the event that you are unable to communicate them yourself.
And don't forget to name a guardian for your minor children in your will - this is one of the most important things you can do to protect your children's interests in the event of your death.
Create A Trust
If you have significant assets, you may want to consider creating a trust to help ensure that your assets get managed according to your wishes and used for the benefit of your family.
There are many different types of trusts, and one of the most popular options for new parents is a trust fund. This type of trust can be used to manage and invest your assets for the benefit of your children.
In the end, estate planning is all about protecting your family and providing for their future. By taking the time to review your life insurance coverage, update your will and create a trust fund, you can help ensure that your child's interests are protected in the event of your death or incapacity.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=477052023-05-08T08:39:01Z2022-05-26T03:54:38ZA Change In Your Marital Status
If you get married, your estate plan will need to be updated to reflect your new spouse. This includes adding them as a beneficiary to your will. And, if they are credible enough, you can name them as your agent under a power of attorney. In like manner, if you get divorced, you'll need to remove your ex-spouse from such designations.
A Change In Your Family Structure
Adding a child or grandchild to the family is one of the most common reasons people update their estate plans. You'll want to include them as beneficiaries in your will and make sure they're taken care of financially if something happens to you. You can also consider setting up trusts for minor children or grandchildren to have their inheritance managed well until they come of age.
A Change In Your Assets
If you acquire new assets, such as a home or investment property, you'll need to update your estate plan to reflect those changes.
A Change In Your Debts Or Financial Situation
If you find yourself in debt, update your estate plan by including provisions on how your debts are settled after you pass away. Keep in mind that your loved ones can only inherit your assets after your executor or estate administrator pays off your creditor. If you believe this might affect what they'll get, then an update to your plan is critical.
A Change In The Federal Or State Laws
The laws surrounding estate planning often change, so it's important to keep up with them.
By regularly revisiting your plan and making changes as needed, you can rest assured knowing that your wishes will be carried out and your loved ones will be taken care of.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=476762023-05-08T08:40:09Z2022-02-17T22:02:19ZAn Updated Will
A will is a crucial document that states who should inherit your property after you die. It also details how your debts should be settled and what should happen to your children if they are minors at the time of your death.
If you don't have a will, you will need to draft one. However, if you have a will, your circumstances may likely have changed since you wrote it. It is important to look at your will annually and make any required changes. If you don't update your estate planning documents regularly, they could become invalid or not reflect what you would like to happen with your estate.
Retirement Plan Beneficiaries
Another important consideration when preparing your estate is your retirement plan. You need to name the right beneficiary for your retirement plan and make sure that the person you name knows what he or she is supposed to do with the money when you die. For instance, you may own an IRA or a 401(k) and had already designated your spouse as the beneficiary. However, if you become divorced and remarry, your new spouse will likely be the beneficiary unless you make a change to this designation — something most people forget to do.
Healthcare Proxy
Many retired individuals are more likely to get ill compared to younger people. Therefore, it is important to have a health proxy. This document specifies who should make medical decisions for you if you cannot. It also appoints someone who will act in the best interest of yourself and family members when making these decisions.
There are many things to think about when it comes to retirement and estate planning. By keeping the above information in mind, you can ensure that your affairs are taken care of, both during your retirement years and after you pass away.]]>On Behalf of The Law Office of Morrison & McGrew, P.A.https://www.samlawoffice.com/?p=476642023-05-08T08:40:54Z2021-12-07T23:02:26ZThe Intentionally Defective Grantor Trust
By disqualifying parts of your estate, an intentionally defective grantor trust, or IDGT, enables the assets you list to grow tax-free. This loophole in estate taxation requires you to relinquish your rights to the chosen assets from within a trust. The now defective assets won't trigger an income tax if they produce gains beyond your principal investment. Additionally, defective assets in this trust avoid estate taxes.
Freezing Values
An IDGT freezes assets to save their initial values, allowing their gains to go unaccounted for. When the IRS accounts for estate assets, dates and maturities get examined. The value of an asset when you enter it into a trust is what's used when that asset, years later, is owned by a beneficiary. This means that the profits from an asset, being defective from you, remain tax-free. What you invested into the trust might be taxable, but gains don't have to be.
Trusts In Maryland
As a grantor of a trust, you don't have to retain the rights to a trust's assets although you own the actual trust. The assets you place into a trust are protected during your life, but you need a beneficiary in place. Though capital gains and income are taxable in common cases, the profits held within a trust remain accountable only to that trust. Your chosen trustee can then offer more security by only releasing gains when the principal of the trust isn't at stake.]]>