Annapolis, MD Wills + Estates Attorney
When you die, your family and loved ones will suffer the pain of your loss. Their grief should not be coupled with having to deal with a confusing estate or a lack of understanding of your intentions. By taking the time to meet with an experienced estate planner, you could provide your loved ones guidance and financial security in the event of your death.
You are never too young to start thinking about estate planning. This is especially the case if you have recently started a family. A will or trust could provide for your children in the event of your death. Our Annapolis, MD wills and estates attorney will thoroughly review your circumstances and offer advice on the best tools available to achieve your goals.
Call Rice Law at (410) 694-7291 to schedule a free consultation with our wills and estates lawyers.
How Wills Are Important for Estate Planning in Annapolis, MD
While estate planning encompasses various strategies, the most essential tool is the last will and testament. If you do not have a written and enforceable expression of your wishes after your death, Maryland law will dictate the distribution of your property and other vital decisions. Our Annapolis wills and estates attorney understands that every one of our clients’ situations is unique and that your estate plan should be tailored to you and your family’s needs.
While a will is generally thought of as a document that details how your property is divided among your heirs, it could have many other important provisions. For example, a will could provide instructions on the care of a minor child. You could also transfer the title of real property, such as your home, and limit the transfer of certain assets based on your family’s circumstances. Furthermore, you could provide your family and loved ones with detailed instructions on your funeral service and burial.
Updating a Will in Annapolis, MD
If you have not considered a will up until this point, you should contact our Annapolis wills and estates attorney to start the process. If you already have a will, you should consider amending it, especially if you have experienced any significant changes in your life. In many cases, having an outdated will presents more challenges and difficulties for your surviving family members than not having a will at all.
Some of the reasons you would want to update your will include a change in marital status, either divorced, remarried, or widowed. An outdated will could leave a new spouse without any right to your property. Additionally, if you have had a new child or adopted a child, you will want your will to provide for them as well as your older children. This is especially the case when people marry into blended families.
Life continues, and you might have acquired substantially more assets since your original will was drafted. In some cases, you might have particular items you want to see going to specific people that you did not know when you made your will. Also, as you age, it is possible to have different thoughts and opinions that impact the wishes you want to express. Our Annapolis wills and estates attorney will assist you in executing a new and enforceable will.
Challenging a Will in Annapolis, MD
Not everyone in Maryland has the ability to challenge a will. A person must establish standing first. Establishing standing is done in one of two ways. The challenger, or “caveator,” must be a named beneficiary in the will or demonstrate that they would have inherited under Maryland’s intestate laws if the will is invalid.
The caveator must also have sufficient grounds to challenge an existing will – the mere belief that they were treated unfairly is not enough.
A will can be contested if the person who created the will was taking advantage of or coerced into executing the document. Undue influence occurs when a person uses their power over another individual to draft or amend a will that benefits their interests. One sign of undue influence is an amended will that substantially changes the original bequests.
As people age, their mental capacity might diminish. If someone drafted or amended their will while not of sound mind, the will could be challenged. Proving this requires expert medical testimony as to the mental condition of the testator.
When a will fails to comply with Maryland’s statutory requirements, it becomes open to challenges. A will must be in writing and signed by the testator and by two witnesses who were in the testator’s presence when they executed the will.
If another will exists, it could invalid a probated will. An Annapolis court will usually hold that the most recent valid will voids any previous documents. However, this is not always the case. When amending or drafting a new will, our Annapolis wills and estates attorney will provide specific instructions on destroying any previous documents to avoid confusion or arguments among your surviving family and loved ones.
Types of Trusts Our Attorneys Can Help You Set Up in Annapolis, MD
People in Annapolis have three basic types of trusts to choose from to help protect their assets, including revocable trusts, irrevocable trusts, and testamentary trusts. Each offers different advantages for certain situations and for how the assets will be distributed. Trusts can protect assets from taxes, probate, and generally be established by anyone for whoever they choose. Our team can help you set up a trust that makes sense for you and your family.
Revocable Trusts
Revocable trusts, often referred to as living trusts, are legal devices that give grantors the ability to amend or completely dissolve the trust at any time during their lifetime. This flexibility is one of the benefits of these types of trusts, allowing individuals to exercise considerable control over how the assets within the trust are managed and distributed.
The grantor, who creates the trust, can also act as the trustee, the person responsible for overseeing the trust’s assets. The grantor can also be a beneficiary of the trust, getting access benefits from those assets.
However, this high level of control comes with specific tax implications. Since the grantor has operational authority over the trust, its assets are regarded as part of the grantor’s estate for tax purposes. Consequently, revocable trusts do not offer significant tax advantages, especially for income or estate taxes. Further, the income generated by the trust’s assets is usually reported on the grantor’s personal tax return. Fortunately, other types of trusts can be explored to get these tax benefits.
Irrevocable Trusts
Irrevocable trusts provide many substantial tax benefits that can help both the grantor and the beneficiaries. However, a drawback of these trusts is the limited control the grantor has once the trust is established.
The process begins with the grantor setting up the trust, selecting a trustee to oversee the trust’s assets, and naming the beneficiaries to receive the benefits outlined in the instrument. After these steps are complete, the trust operates independently, which is why these trusts are sometimes referred to as “fire and forget” arrangements.
While the grantor can regain some control under certain circumstances, doing so usually involves tweaking the trust’s terms. For instance, imagine a grantor who has set up an irrevocable trust to fund their child’s college education. As the child matures, they might discover a passion for music and dream of pursuing a career in a rock band instead of attending university. In this scenario, the grantor can revise the trust to permit funds to be used for music lessons, recording sessions, or other music-related expenses.
Although you can alter an irrevocable trust, you should do so with the help of our legal team to ensure that all regulations are followed and that the necessary documentation is gathered.
Testamentary Trusts
Testamentary trusts are designed to manage and distribute assets after the death of the grantor. An essential aspect of these trusts is that they only become effective when the grantor’s will goes through probate, which is the legal process for validating the will in court.
Once a testamentary trust is activated, it operates similarly to irrevocable trusts, in that its terms generally cannot be changed. However, unlike irrevocable trusts, the grantor retains the right to modify the testamentary trust’s provisions by amending their will before their death, offering a bit more flexibility in how your assets are managed.
One key benefit of a testamentary trust is the ability to hold onto assets until certain conditions are met. For example, a grantor might set up a trust to provide for their minor children, ensuring that no distributions are made until they reach 18 years old. This helps you protect important resources until your beneficiaries are mature enough to handle their inheritance responsibly.
However, testamentary trusts do not avoid the probate process, which can lead to delays and potential complications in how assets are distributed. Also, the assets in a testamentary trust might be subject to various taxes that could reduce the overall value of the estate passed on to the beneficiaries. Our lawyers can help draft a trust that gives you the most protection possible.
What Trusts Can Be Used for in Annapolis, MD
As discussed briefly above, trusts can be used for many situations, as long as it is legal. In most cases, though, trusts are used to transfer property according to the owner’s wishes and for their children’s or others’ educational needs.
Transfer Property
People often establish trusts to transfer property more easily than they would with other legal mechanisms. For instance, placing real estate into a trust not only simplifies the transfer process but can also offer tax advantages. This approach allows individuals with multiple properties to manage their investments while minimizing substantial capital gains taxes.
Another primary reason for setting up trusts is effective estate planning. When you place property in a trust, it no longer belongs to you personally. Instead, it is owned by the trust. As a result, the property bypasses the probate process when the time comes to transfer it. Trusts help control the complexities of a will and create a more flexible way to manage the assets without having to update your will and other estate documents constantly.
Educational Needs
One of the primary reasons people establish trusts is to assist their children or other family members in funding costly educational expenses. When creating this type of trust, it is usually wise to ensure that minor beneficiaries cannot access the funds prematurely and that the money is used appropriately. To achieve this, our lawyers can include specific language in your trust documents that prevents beneficiaries from tapping into the funds until they reach adulthood or under specific circumstances. The terms can also stipulate that the money be directed towards higher education or other related or necessary expenses.
Call Our Annapolis, MD Wills and Estates Attorney for a Free Consultation
No one wants to think about their death, but it is inevitable and it will have an impact on your family and loved ones. By taking the time now to put together a comprehensive estate plan, you can provide for the financial security of your family or loved ones. If you have made plans, it might be time to revisit them – especially if your circumstances have changed. Our Annapolis, MD wills and estates attorney has been assisting our clients for over two decades. If you are thinking about a will or want to amend or add to your existing estate plan, contact our Maryland estate planning attorney at Rice Law at (410) 694-7291 to schedule a free consultation.