Many times in life one has to accept that there are things he or she cannot control. This is why many people in Maryland shy away from pursing estate plans. However, unlike what some may believe, planning an estate does not have to be about losing control of one's assets or finances if an irrevocable trust is utilized.
Tax considerations are an important aspect of estate planning. This is why many people in Maryland and other states utilize trust planning strategies in order to minimize tax liabilities. However, there are times when the tax laws regulating trusts may not be exactly straightforward. This was the case in a recent court dispute involving the Internal Revenue Service (IRS) over the real estate activities of a particular trust.
Jurisdiction is an important concept when it comes to litigation. This is definitely true for estate administration matters that are taken to court in Maryland or in any other state. The question of jurisdiction can be important when a party decides to sue a trust in court.
The United States legal system can be quite complicated at times, especially when it comes to jurisdiction. First, there is Federal law and then each state also has their own laws. This can create some ambiguity when it comes to taxation rules, which becomes especially relevant when planning an estate in Maryland or in any other state. If the beneficiary to a trust decides to move to another state, this could have significant taxation ramifications, which one should keep in mind.
There are various types of legal documents which people commonly use to plan their estates. One of the most popular and useful types of legal instruments in Maryland and any other state is a revocable living trust. This document allows an individual to choose who will receive his or her money and assets after death. Along with the trust maker's signature, a living trust must also have a trustee.
On April 13, in a post titled, "Creating a trust and selecting a trustee," we gave a brief summary of some ways that a trust and well-appointed trustee can help in estate planning and administration. Now, more specifically, some sources recommend considering some key elements of estate planning before determining who will be selected as the trustee of one's estate. Maryland residents taking the time to plan for the future typically want to be sure that their wishes, assets and family are protected, which is why it is crucial that the process of establishing a trust and trustee is organized and successful.
One important aspect of estate planning is deciding whether or not to establish a trust. A trust can help not only with managing the assets of the estate, but can also reduce the impact of estate taxes and save beneficiaries from having to endure the probate process. Yet a trust can be a legally complicated instrument and before establishing one, it is important for residents in Maryland and elsewhere to understand the potential consequences of different types of trusts.