MVP Estate Planning

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, January 27, 2012

2012-01-27T11:08:00.000-08:00

Next Estate Planning Q&A Forum - Friday, January 27, 2012

2012-01-24T08:43:00.000-08:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place Friday, January 27th, 2012. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, January 13, 2012

2012-01-13T14:50:00.000-08:00

Next Estate Planning Q&A Forum - Friday, January 13, 2012

2011-11-23T07:23:00.000-08:00

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, November 4, 2011

2011-11-07T11:57:00.000-08:00

Next Estate Planning Q&A Forum - Friday, November 4, 2011

2011-10-31T07:08:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place this Friday, November 4, 2011. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, October 21, 2011

2011-10-24T08:57:00.000-07:00

MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.

Question 1 – Power of Attorney
Should I give copies of my POA to the Bank, my mortgage specialist, my stock broker or should I just provide my agent with a copy?

Answer 1
You should provide a copy to your designated agent, but I would not recommend providing a copy to the Bank, your mortgage specialist or your stock broker because of the broad sweeping authority the POA gives to your agent. It becomes effective upon signature, so even if you are not incapable of making financial decisions on your own, your agent has the authority and access to do any such acts as stated in the Statutory POA.

Question 2 – Wills
What is probate? When a will is admitted to probate, what exactly does that mean?

Answer 2
The Office of the Register of Wills for the State of Maryland provides the following:
The literal interpretation means to prove, as in proving one's will. It can be done administratively in the Register of Wills Office or judicially by the Orphans' Court when necessary. It is the marshalling of assets, the payment of all creditors and the transference of all property in the decedent's name to the beneficiaries either named in the will or who would inherit under the laws of intestacy (dying without a will).

Question 3 – Advance Directive
Should I provide copies of my Advance Directive to my PCP, the hospital near my home, and my therapist or should I just provide my agent with a copy?

Answer 3
You should provide copies of your Advance Directive to the following interested persons:
1.Designated health care agent;
2.Primary care physician;
3.Hospital or treatment center;
4.Therapist;
5.Any other doctors that you frequent (i.e., gastrologist; oncologist; cardiologist; gynecologist)
6.You may wish to keep a copy of the Advance Directive in your vehicle;
7.You may wish to keep a copy of the Advance Directive in your wallet/purse.

Question 4 – Wills
What are probate assets?

Answer 4
Individual assets include all property titled in the decedent's sole name, without any other owners or a payable on death or similar type of beneficiary designation. Types of assets that can be titled this way include bank accounts; investment accounts; stocks and bonds; cars, boats, scooters and airplanes; business interests; real estate and tenant in common assets.

Question 5 – Wills
When should a Lawyer’s services be used?

Answer 5
There are many self-help kits on the internet that allow individuals to prepare and plan their own wills;however, we recommend that you obtain the expertise of a licensed professional who has experience in the estate planning process. It is important that your will is drafted with your goals in mind, whether those goals include protecting your legacy, reducing taxes, etc. It is always better to have the assistance of an experienced attorney to guide you through the challenging process. There are also signature requirements and a signing ceremony which is extremely important and could pose issues in the future if not done properly.

Question 6 – Wills
My father recently passed and designated me as his executor in his will. What do I need to do to get started?

Answer 6
The following is a partial list of items you will be required to furnish to open an estate in Maryland:
•Decedent's Last Will and Testament
•Death Certificate
•Funeral Contract/Bill
•Approximate value of assets in the decedent's name alone
•Title to decedent's automobiles and/or other motor vehicle
•Names and addresses of persons interested in the estate
•Regular Estate Forms - forms available on the MD Office of the Register of Wills website
•Small Estate Forms - forms available on the MD Office of the Register of Wills website
•Any applicable filing fee

Question 7 – Power of Attorney
I am aware that the new Statutory Power of Attorney is very broad and covers everything, is there an alternative, is there an option to only allow an agent to act in your behalf on certain issues like real estate and not everything? Please advise.

Answer
Yes, there is a Statutory Limited Power of Attorney available in the State of Maryland. This statutory form allows the principal to designate particular categories and actions, it is specific and would allow the agent to only act as designated in the form. The form covers the same subjects as the Durable Statutory Power of Attorney: Real Property; Tangible Personal Property; Stocks and Bonds; Commodities; Banks and other Financial Institutions; Operation of an Entity or Business; Insurance and Annuities; Estates, Trusts and other Beneficial Interests; Claims and Litigation; Personal and Family Maintenance; Benefits from Governmental Programs or Civil or Military Service; Retirement Plans, Taxes; and Gifts.

Question 8 – Wills
My father has a number of vehicles that he has collected over the years. He is still presently alive but he is not doing well, we are trying to understand the whole ‘probate’ process before we must go down that road as a family. My question is how difficult is it to transfer ownership of a vehicle? All of his cars have been registered and inspected in the State of Maryland, he’s got three antiques and two trucks, all running.

Answer
As stated on the Maryland Motor Vehicle Administration (MVA) website - If the vehicle is owned by the deceased person and its ownership is to be transferred to a legal heir, legatee, distributee or sold, you will need to contact the Register of Wills in the jurisdiction in which the deceased was a resident to confirm that you have all of the necessary documents and obtain the legal heir certification or letters of administration.
When presenting the MVA with letters of testamentary or administration to complete the transfer of ownership for a vehicle, the MVA can accept only the original. The original letters, which are issued by the Register of Wills, have a raised seal.

If you are a legal heir, legatee or distributee this is what you need to do:
•A legal heir is a person, usually a descendant of the deceased individual, who inherits property and/or wealth owned by the deceased.
•A legatee refers to a person named within the will of a deceased, not necessarily a relative.
•A distributee describes a person entitled to share in the distribution of the estate of the deceased.
•If the ownership is being transferred to a legal heir, legatee or distributee, the "assignment of ownership" section on the back of the "Maryland Certificate of Title" must be completed.
•The original letters of administration, naming the administrator, must be included with the title to transfer the ownership. Please be sure to give the administrator's full name and address.

Question 9 – Advance Directive
Should I indicate/have a provision in my Will that provides my plans for my burial or in my Advance Directive or in both?

Answer
Considering that your Will - will not be seen until after your death, it would make sense to include any information concerning your funeral arrangements in your Advance Directive. If you do include information concerning your burial in your Advance Directive, you should also discuss these plans in detail with your immediate family members so that your wishes are known and carried out.

Question 10 – Wills
Funeral expenses allowance for person who dies in year 2011?

Answer
The current funeral allowance for a regular estate is $10,000.00. Additionally, if the estate is solvent and the decedent's Will expressly empowers the personal representative to pay the funeral expenses without Court approval, a Petition and Court Order is not required.

MVP Law Group would like to thank everyone who contributed a question or comment.

Our next “Estate Planning Q & A Forum” is scheduled for Friday, November 4th, 2011!

Please remember to submit your questions/comments on our Website, Facebook or Twitter.

Next Estate Planning Q&A Forum - Friday, October 21 , 2011

2011-10-17T10:07:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place this Friday, October 21, 2011. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, October 7, 2011

2011-10-10T07:29:00.000-07:00

MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.

Question #1 – General
What is the current gift tax exemption?

Answer #1
Every taxpayer can take advantage of the $13,000 exclusion, every year. A taxpayer may make as many gifts as he or she desires as long as no one person gets more than $13,000 of value in any one year. Married couples may therefore give $26,000 to each recipient; if they make a special election, the entire $26,000 can come from one partner’s property.

Question #2 - Trusts
What kind of protections can I get if I create a trust rather than a standard last will and testament?

Answer #2
A trust can give you:

• Control--by protecting your beneficiaries from fraud or mismanagement of your assets, especially in case of your disability or death.
• Continuity--by continuing to manage your assets appropriately if you encounter a life-changing event.
• Privacy--by keeping your affairs out of the public record. A will becomes a public record when it's filed with a probate court upon your death, so if you use just a will for estate planning, anyone can access it. However, almost with any trust, an experienced Estate Planner would recommend a pour-over will for the applicant to cover anything and everything not placed in the trust.
• Tax advantages--by distributing your assets in a way that minimizes your tax burden, or that of your beneficiaries.
There are many types of trusts, each designed to accomplish specific goals. Trusts can be great tools, but they're complex, so it's important to understand how they work and how to get started.

Question #3 – Advance Directive
If I have changed my mind about receiving life support and being an organ donor, can I change my Advance Directive easily?

Answer #3
You may revoke your Advance Directive at any time. You are completely in control of your health care directions, and if your desires change at any time, you should destroy the original and execute a new Advance Directive to reflect your wishes. You should also inform all who have a copy to return it to you to be destroyed, and let them know that you have revoked it, as your health care directions have changed, and if possible, provide them with a copy of the new Advance Directive.

Question #4 – Wills
What can a will not do?

Answer #4
A will cannot cover property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust. A will cannot cover proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan. However, you may on your own change the name of the beneficiary on the forms provided by the insurance agency, financial institution, etc. A will cannot cover stocks and bonds held in beneficiary forms. Additionally, a will cannot cover money in a payable-on-death bank account, as a simple form can be obtained from your bank to change the beneficiary listed.

Question #5 - General
What is the Maryland estate tax?

Answer #5
According to the Comptroller of Maryland website - The Maryland estate tax is a transfer tax imposed on the transfer of assets from an estate. The tax rate is limited to 16 percent of the amount that the estate value exceeds $1,000,000. It is based on the maximum credit for state death taxes allowable under § 2011 of the Internal Revenue Code. It is calculated by deducting the inheritance tax paid to the Register of Wills from the allowable credit.

Question #6 – Wills
I am trying to determine whether I need a simple will or if I should go with a trust and pour over will to protect my assets, can you tell me what the cutoff amount is in Maryland? Knowing this would assist me in making a decision.

Answer #6
A Maryland estate tax return is required to be filed for every estate whose gross estate plus adjusted taxable gifts equals or exceeds $1,000,000. If your assets and net worth are less than $1,000,000, no return is required and a simple will may be sufficient. If a return is required, the tax rate is limited to 16% of the amount that the estate value exceeds $1,000,000.

*We recommend that you speak with a qualified Estate Planning Professional if your total assets and net worth equal or exceed $1,000,000.00 so that you can plan properly.

Question #7 – General
What types of gift are generally not taxable?

Answer #7
Generally, the following gifts are not taxable gifts: gifts that are not more than the annual exclusion for the calendar year; gifts to a political organization for its use; gifts to charities; gifts to one's (US taxpayer) spouse; Tuition or medical expenses one pays directly to a medical or educational institution for someone.

Question #8 – Advance Directive
I just underwent a severe surgery and the Nurse asked if I had a Living Will ( “Advance Directive”), I said no but went home and looked it up on the internet. If I have one drafted, who do I give it to and will they listen to it?

Answer #8
You should distribute copies of your Advance Directive to your health care agent, family, doctors and/or medical facility most likely to treat you, otherwise it will be wasted time, money and words on a sheet of paper. Your Advance Directive should be in the hands of the people who need to know about it, so that your health care directions are carried out in accordance with your wishes.

If your Advance Directive is valid (signed by the appropriate amount of witnesses, and the person whom you have listed as your health care agent is not in violation of State law), then your health care agent, doctors and medical facility most likely to treat you must follow your wishes regarding your health care treatment.

Question #9 – Wills
I just joined an organization that I would like to include in my estate plan. I had my will drafted at least four years ago, in 2007. Can I do this easily?

Answer #9
You may make changes to your will whenever desired and should when your current situation changes. For instance, if you move to a new state, get married or divorced, have a baby, have step children or adopt, and if you acquire or dispose of substantial assets, you should change your will to reflect your current situation.

You may make changes by adding a codicil to your existing will or by creating an entirely new will.

Question #10 – Wills
I have multiple digital assets – facebook, twitter, linked In, gmail, Hotmail and yahoo email accounts, a Kodak picture gallery account, a Snapfish picture account and several registered domain names. I heard through some friends of mine that there are ways to include this information in my will or something like that. Can you explain this process/procedure?

Answer #10
You are absolutely correct. There are ways to make reference to your digital assets in your estate plan so that your digital assets upon your death are either terminated or forwarded to a beneficiary that you named prior to your death. MVP works with a company called Entrustet (www.entrustet.com) who has developed software that allows for you to list all of your digital assets and either provide a beneficiary that the asset will be forwarded to upon your death, or state that the account/asset should terminate upon your death. This list is then incorporated into your will by reference. The company listed above only provides the program to list your digital assets, you then would go meet with a qualified Estate Planning Professional to have this list incorporated into your will.

MVP Law Group would like to thank everyone who contributed a question or comment.

Our next “Estate Planning Q & A Forum” is scheduled for Friday, October 21st, 2011!

Please remember to submit your questions/comments on our Website, Facebook or Twitter.

Next Estate Planning Q&A Forum - Friday, October 7, 2011

2011-10-03T11:30:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place this Friday, October 7, 2011. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, September 23rd, 2011

2011-09-26T08:54:00.000-07:00

Next Estate Planning Q&A Forum - Friday, September 23, 2011

2011-09-20T06:21:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place this Friday, September 23, 2011. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, September 9th, 2011

2011-09-09T09:03:00.000-07:00

MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.

Question #1 – Wills
What are the Intestacy rules/laws for Maryland?

Answer #1
In the State of Maryland, if you die without a will, your property will be distributed as follows:

IF THE DECEDENT IS SURVIVED BY-

Spouse and minor children of the decedent- spouse receives one-half, children share remaining one-half;

Spouse and children (all adult) of the decedent-spouse receives $15,000 plus one-half of remaining estate-children divide balance (the interest of a predeceased child passes to issue of that child);

Children only of the decedent-children (does not include step-children) divide entire estate (the interest of a predeceased child passes to issue of that child);

Spouse and parents of the decedent- spouse receives $15,000 plus one-half of remaining estate-both parents divide balance or surviving parent takes balance;

Spouse of the decedent without other heirs listed above-spouse receives entire estate;

Parents of the decedent without other heirs listed above-both parents divide entire estate or surviving parent takes all;

Brothers/sisters of the decedent without heirs listed above-brothers and sisters divide estate equally (share of deceased sibling goes to their issue-nieces and nephews of the decedent);

Grandparents without other heirs listed above-grandparents divide entire estate or, if deceased, to their issue (see applicable law for details);

Great-grandparent without other heirs listed above-great-grandparents divide entire estate or, if deceased, to their issue (see applicable law for details);

Step-children-if there are no heirs listed above;

No living heirs or step-children-If decedent was a recipient of long-term care benefits under the Maryland Medical Assistance Program at time of death, net estate is paid to Department of Health and Mental Hygiene. Otherwise, the net estate is paid to the Board of Education.

Question #2 - Wills
Trying to determine what the best estate planning tool is for me. What can a will not do?

Answer #2
A will cannot cover property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust. A will cannot cover proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan. However, you may on your own change the name of the beneficiary on the forms provided by the insurance agency, financial institution, etc. A will cannot cover stocks and bonds held in beneficiary forms. Additionally, a will cannot cover money in a payable-on-death bank account, as a simple form can be obtained from your bank to change the beneficiary listed.

Question #3 – Advance Directive
I had a colonoscopy last week and Nurse asked if I had an Advance Directive, I said no but went home and looked it up on the internet. If I have one drafted, who do I give it to and will they listen to it?

Answer #3
You should distribute copies of your Advance Directive to your health care agent, family, doctors and/or medical facility most likely to treat you, otherwise it will be wasted time, money and words on a sheet of paper. Your Advance Directive should be in the hands of the people who need to know about it, so that your health care directions are carried out in accordance with your wishes.

If your Advance Directive is valid (signed by the appropriate amount of witnesses, and the person whom you have listed as your health care agent is not in violation of State law), then your health care agent, doctors and medical facility most likely to treat you must follow your wishes regarding your health care treatment.

Question #4 – Power of Attorney
My sister-in-law has appointed me to be her Agent. I do not know the first thing about these legal documents. Do I need to consult with an Attorney?

Answer #4
If someone has appointed you or asked you to be their agent/attorney in fact, we advise you to consult with a licensed Attorney if you are unsure about your responsibilities/liabilities as an agent/attorney in fact.

Question #5 - Wills
My wife and I need to get our wills drafted. Do I need to come to your office or is this something that you can do over the telephone?

Answer #5
If you wish to have your will drafted by our office, we will need to arrange an initial client meeting. Below you can find – what to expect, what to bring and timeframes.
Although the Last Will & Testament will be unique to your individualized situation, the initial client meeting and the preparation stages are basically the same for all applicants.
Before determining which estate planning tools would be best suitable for your particular situation, we will need to schedule an initial client meeting to determine and identify (1) your goals; (2) your family situation; (3) your property (real and personal) and (3) your finances. At the initial client meeting, we will go over very general information, and any specific questions that you may have. You will not need to bring anything with you to this meeting. Also, if applicable at that time I will discuss with you the dual representation agreement, which explains how I, as the Attorney, can represent both you and your spouse with the preparation of your Estate Planning Documents, and how the information that either of you share with me, will be communicated to and shared with the other. We will also discuss the legal agreement and any questions that you may have. Nothing will need to be signed at this time; however, if you do choose to retain our office for your Estate Planning, the dual representation agreement and legal agreement will need to be signed and returned to our office to proceed. Additionally, at the end of our initial client meeting, I will provide you with a lengthy questionnaire that asks for specific information about your life including your property (real and personal), family, and finances. Please be as specific as possible, in the event that a court does get a hold of your will, we do not want any inconsistencies or unclear statements. Once you have completed the questionnaire, we will schedule another meeting where you will bring your financial documents, deed(s), etc., to our office so that we can review them and plan for the preparation of your Last Will & Testament. Generally, it takes about two (2) weeks’ time from the time we receive your completed questionnaire and background documents until your will is ready for your first review. We will have another client meeting to review your will, so that we can thoroughly review each provision and make any changes if needed. At the close of that meeting we will schedule for the final drafting and signing, which is when you must bring two witnesses with you to our office to sign your Last Will & Testament. If you do not have any witnesses, we can arrange for witnesses to be present.

Question #6 – Prenuptial Agreement
I am planning on getting married in February 2012. My partner and I have discussed drafting a prenuptial agreement. What type(s) of information needs to be included in this agreement?

Answer #6
Certain information must be provided by both parties to the agreement, that particular information is provided below:
• Checking accounts
• Certificates of Deposit, Savings Accounts
• Stocks & Bonds
• Mutual Funds
• Real Estate
• Business Interest/Ownership
• Retirement Benefits (IRA, 401(k), other retirement benefits)
• Life Insurance policies/annuities
• Other Trusts, Anticipated Inheritance
• Personal Property (cars, boats, etc)
• Other Personal Property (home furnishings, jewelry, collections, etc)
• Liabilities (home mortgage, debts, etc)
• Other Assets
• Most recent personal federal income tax return

Question #7 – Prenuptial Agreement
Similar question, what type of things can/cannot be included in this agreement?

Answer #7
A prenuptial agreement can include a wide array of things. It may include the following types of provisions:
• Alimony/Spousal Support or Waiver thereof
• Use or nonuse of Joint Bank Accounts
• Filing of Tax Returns
• Agreements about specific purchases or projects
• Purchasing a home/starting a business
• Use/nonuse/limited use of Credit Cards
• How to settle future disagreements
• Lifestyle clauses
• Right to inherit
• Right to be named beneficiary of life insurance policy and/or retirement benefits
However, personal agreements as to household chores, exercising, cooking, etc should be kept out of the agreement, as they are not binding in court, and may cause a Judge to take your pre-martial agreement less seriously.

Question #8 – Wills
Do I need a will? I am single -never married, no kids, decent salary, own my home and its paid off, sufficient stocks and bonds, over 50.

Answer #8
We recommend that everyone should have a will, especially anyone who owns property, whether personal or real. There is absolutely no need to have a large estate to plan and prepare a will. Individuals with cash, vehicles, jewelry, furniture (personal property) should make a will to distribute their assets. Additionally, individuals owning land and/or houses (real property) should make a will.

Question #9 – Trusts
My sister is the trustee of my mother’s Trust and I don’t think she is doing what she should to maintain the Trust…. Can you let me know what a trustee does/is responsible for?

Answer #9
A trustee has a fiduciary duty to protect the assets of the trust, and to make sure that the purposes of the trust are carried out. Accordingly, by having possession and control of the trust assets the trustee must preserve the trust assets; control the investment of the trust assets; keep an accounting of the trust assets; keep the assets separate; make accurate distributions and keep beneficiaries fully informed.

Question #10 – Advance Directives
My son lives in MD, my daughter lives in PA. My son is very busy with his own life and very frugal and my daughter single, a workaholic and a spendaholic. Who should I serve as my health care agent?

Answer #10
You should appoint someone who you trust, who is reliable, and who you have shared your medical care concerns and/or wishes with, as your Health Care Agent. You may appoint your Attorney as your Health Care Agent, an immediate family member, or even a trusted friend. You may not name an owner, operator, or employee of a health care facility where you are/or have received care to be your health care agent. We recommend that you name two Health Care Agents in the event that your first choice is unavailable for some reason to act in your best interests. Accordingly, you could name your son as your first choice and your daughter as the second choice in the instance that he is unable to serve; ultimately it is a decision that must be made by you.

MVP Law Group would like to thank everyone who contributed a question or comment.

Our next “Estate Planning Q & A Forum” is scheduled for Friday, September 23rd, 2011!

Please remember to submit your questions/comments on our Website, Facebook or Twitter.

Next Estate Planning Q&A Forum - Friday, September 9, 2011

2011-09-06T07:55:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place this Friday, September 9, 2011. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, August 26th, 2011

2011-08-26T07:21:00.000-07:00

MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.

Question #1 – Power of Attorney
How does it work? How is it supposed to work?

Answer #1
A Power of Attorney (POA) is effective as soon as the Principal signs it, unless the Principal states that it is only to be effective upon the happening of some future event. A POA is one of the strongest legal documents that an individual can give to another person. A POA can be used to create new debts, buy or sell property, and deplete your bank account. It is important to remember that YOU will be held responsible for the acts of your agent. Thus, you must exercise great care in choosing your agent. A POA will be accepted as valid for most purposes. However, there are some actions that cannot be accomplished by using a POA because these actions are so personal in nature they cannot be delegated to another. In addition, some businesses require a power of attorney to be in a certain form or be recorded. For example, your bank may accept only a special power of attorney with the account number specifically listed. Whenever possible, you should check with the business before obtaining or using a power of attorney to be sure it will be accepted.
After being certain that the POA gives you the authority to do what you want to do, take the Power of Attorney (or a copy) to the third party. Explain to the third party that you are acting under the authority of the POA and are authorized to do this particular act. Some third parties may ask you to sign a form stating that you are acting properly. If it states something that you do not understand in your capacity as Agent for the Principal, you may wish to consult your attorney prior to signing it. The third party should accept the POA and allow you to act for the Principal. When acting as an Attorney-in-Fact, always make that clear when signing any document. The new Statutory Power of Attorney Act which took effect October 1, 2011 was created in order to assist individuals when presenting POAs to third parties, a standard form was drafted to be accepted across the board.

Question #2 - Trusts
What kind of protections can I get if I create a trust rather than a standard last will and testament?

Answer #2
A trust can give you:

•Control--by protecting your beneficiaries from fraud or mismanagement of your assets, especially in case of your disability or death.
•Continuity--by continuing to manage your assets appropriately if you encounter a life-changing event.
•Privacy--by keeping your affairs out of the public record. A will becomes a public record when it's filed with a probate court upon your death, so if you use just a will for estate planning, anyone can access it. However, almost with any trust, an experienced Estate Planner would recommend a pour-over will for the applicant to cover anything and everything not placed in the trust.
•Tax advantages--by distributing your assets in a way that minimizes your tax burden, or that of your beneficiaries.
There are many types of trusts, each designed to accomplish specific goals. Trusts can be great tools, but they're complex, so it's important to understand how they work and how to get started.

Question #3 – Advance Directive/Living Will/Health Care POA
My daughter insists that I draft the necessary documents to protect my wishes concerning my health before I die. From my understanding, I’m going to need a living will and health care power of attorney in order to explain my health care wishes to my family/friends/doctors, etc. Can you firm draft these documents for me?

Answer #3
The State of Maryland has combined the living will and health care power of attorney and uses the term “Advance Directive”. Our firm will be able to draft the advance directive for you.

Living Will - A living will allows you to leave instructions for your health care treatment. It usually provides specific directions about the course of treatment that is to be followed by health care providers and caregivers. A living will may be general or very specific, a specific living will may include information regarding an individual's desire for such services such as analgesia (pain relief), antibiotics, hydration, feeding, and the use of ventilators or cardiopulmonary resuscitation.

Health Care Power of Attorney - A health care poa authorizes someone appointed by you to make decisions on your behalf concerning your health care when/if you are incapacitated.

Advance Directive –An advance directive is your life in your terms. It allows you to document your wishes concerning your health care. It is effective upon signature when signed in front of the required amount of witnesses.

Question #4 – Wills
Difference between a small estate and a regular estate.

Answer #4
Regular estate – the estate procedure for a decedent who owned probate assets with a gross value in excess of $30,000 (or $50,000 if the sole heir or legatee is the surviving spouse)

Small estate – the estate procedure for a decedent who owned probate assets with a gross value of $30,000 or less (or $50,000 or less if the sole heir or legatee is the surviving spouse)

Question #5 - Advance Directive/Living Will/Health Care POA
What can you plan for in your Living Will/Health Care POA?

Answer #5
An Advance Directive normally involves these types of issues:
•Admission and/or Discharge from Hospital, Hospice, Nursing Home, or other medical facility;
•Request to Receive Protected Health Records as your Personal Representative under HIPAA;
•Withholding/WithdrawingLife-Prolonging Procedures;
•Withdrawing Food & Water (Artificially Administered Nutrition & Hydration);
•Palliative Care;
•Authorizing Organ, Tissue or Body Donation;
•Authorizing an Autopsy;
•Authorizing Disposition of Your Remains;
•Nominating a Guardian;
•Pregnancy (you may indicate whether or not you want Health Care directions carried out in the event of your pregnancy).
However, with an Advance Directive, you may specify your care for different situations, or if you wishes are simple, you may leave all decisions to your health care agent to act in your best interest.

Question #6 – Prenuptial Agreement
Should I get a prenuptial?

Answer #6
Prenuptial agreements used to be looked down upon; however, they now are becoming more acceptable in our society. You should consider entering into a prenuptial agreement if: (i) you have children from a previous marriage; (ii) you own significant amounts of property; (iii) have previously been married; (iv) have a salary over $100,000; or (v) own a business and/or family business. There are four main purposes of a prenuptial agreement: (1) to avoid costly litigation; (2) to protect family and/or business assets; (3) to protect against creditors; and (4) to give you assurance that marital property will be disposed of properly. If you do not have a prenuptial, the State of Maryland will divide the assets of the marital union based on an equitable distribution, equitable does not necessarily mean “equal,” in the event of a divorce.

Question #7 – Trusts
What exactly is a Testamentary trust?

Answer #7
A testamentary trust is created by a will. The will itself contains language that creates the trust and since a will does not become effective until death, the trust does not exist until death. Testamentary trusts are distinguished from inter vivos trusts which are created during the settlor's lifetime. In practical terms, testamentary trusts tend to be driven more by the needs of the beneficiaries (particularly infant beneficiaries) than by tax considerations, which are the usual considerations in inter vivos trusts. A testamentary trust provides a way for assets devolving to minor children to be protected until the children are capable of fending for themselves. The trustee is required to meet with the probate court regularly and prove that the trust is being handled in a responsible manner and in strict accordance with provisions of the will which created the trust. The trustee must be prepared to oversee the trust for its duration, which involves a considerable commitment in time, possible emotional attachment, and legal liability.

Question #8 – Post-marital Agreement
What is a Post-Marital Agreement?

Answer #8
A post-martial agreement is an agreement made between spouses after marriage. The post-martial agreement is similar to the pre-nuptial agreement; however, it is entered into after the marriage of the parties, and normally when circumstances have changed. It is a way for couples to legally resolve property distribution matters, divide debt, and provide for or deal with children. The agreement must be in writing and signed freely and voluntarily by both parties, with fair and reasonable terms free from fraud and duress to be enforceable in court. The agreement may provide specific financial benefits to ensure that if your spouse fails to live up to their end of the agreement, a court will enforce it.

Question #9 – Prenuptials
Should I have my own Attorney for my prenuptial agreement?

Answer #9
YES, absolutely. Each party to the marriage should seek independent counsel before entering into a prenuptial agreement so that there is full and frank disclosure, a full understanding of the rights, duties and responsibilities of the parties to the agreement, and to ensure that the agreement is free from duress and fraud. If one party seeks counsel and the other does not, and the terms of the agreement are unfavorable to one party, the entire agreement may be considered unenforceable in a court of law.

Question #10 - Wills
I am concerned about my grandmother’s competency. What are the requirements to make a Valid Will?

Answer #10
To make a will anywhere, the maker must be: At least 18 years old, of sound mind,free from duress, coercion; and able to completely understand the property they own, its value, and who they wish to leave it to upon their death.

MVP Law Group would like to thank everyone who contributed a question or comment.

Our next “Estate Planning Q & A Forum” is scheduled for Friday, September 9th, 2011!

Please remember to submit your questions/comments on our Website, Facebook or Twitter.

Next Estate Planning Q&A Forum - Friday, August 26, 2011

2011-08-22T08:16:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our next “Q & A Forum” will take place this Friday, August 26, 2011. Act now and submit your questions!

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, August 12th, 2011

2011-08-12T05:55:00.000-07:00

MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.

Question #1 - Wills
I am trying to determine whether I just need a simple will or if I should go with a trust and pour over will to protect my assets, can you tell me what the cutoff amount is in Maryland? Knowing this would definitely assist me in making a decision and moving forward.

Answer #1
Maryland Estate Tax
A Maryland estate tax return is required to be filed for every estate whose gross estate plus adjusted taxable gifts equals or exceeds $1,000,000. If your assets and net worth are less than $1,000,000, no return is required and a simple will may be sufficient. If a return is required, the tax rate is limited to 16% of the amount that the estate value exceeds $1,000,000.

*We recommend that you speak with a qualified Estate Planning Professional if your total assets and net worth equal or exceed $1,000,000.00 so that you can plan properly.

Question #2 - Wills
If I already have a will (executed many years ago) when should I update the will? I guess what I am asking is – are there any particular circumstances when you should update your will?

Answer #2
Yes, there are certain circumstances that if they were to occur, we recommend that you update your will. Those circumstances include the following: a significant increase or decrease in wealth; death of a beneficiary; children are now adults; guardian of children dies or circumstances surrounding relationship change; unexpected illness or injury of a beneficiary; marriage; divorce; the birth of a grandchild, etc.

Question #3 – Advance Directive/Living Will
What is the difference between death from a terminal condition, persistent vegetative state and end state condition? They provide all three scenarios on the form, when discussing with my daughter, we thought that they overlap, please explain.

Answer #3
The Advance Directive form provided by the Maryland Attorney General’s Office includes a very important section entitled, “Preference in case of Terminal Condition.” Within that section, the three situations as indicated above are listed and you are given three choices to make.

As Defined by the Maryland Attorney General’s Office:

A. Terminal Condition" means an incurable condition caused by injury, disease, or illness which, to a reasonable degree of medical certainty, makes death imminent and from which, despite the application of life-sustaining procedures, there can be no recovery.
B."Persistent Vegetative State" a condition caused by injury, disease, or illness:
- In which a Resident has suffered a loss of consciousness, exhibiting no behavioral evidence of self-awareness or awareness of surroundings in a learned manner other than reflex activity of muscles and nerves for low level conditioned response; and
- From which, after the passage of a medically appropriate period of time, it can be determined, to a reasonable degree of medical certainty that there can be no recovery.
C."End-Stage Condition" means an advanced, progressive, irreversible condition caused by injury, disease, or illness:
- That has caused severe and permanent deterioration indicated by incompetency and complete physical dependency; and
- For which, to a reasonable degree of medical certainty, treatment of the irreversible condition would be medically ineffective.

Question #4 – Wills – SPECIAL: Digital Assets
I have multiple digital assets – facebook, twitter, linked in, myspace accounts; gmail, Hotmail and yahoo email accounts; a Kodak picture gallery account and several registered domain names. I heard through some friends of mine that there are ways to include this information in my actual estate plan, like incorporated into my will or something like that. Can you explain this process/procedure?

Answer #4
You are absolutely correct. There are ways to make reference to your digital assets in your estate plan so that your digital assets upon your death are either terminated or forwarded to a beneficiary that you named prior to your death. MVP works with a company called Entrustet (www.entrustet.com) who has developed software that allows for you to list all of your digital assets and either provide a beneficiary that the asset will be forwarded to upon your death, or state that the account/asset should terminate upon your death. This list is then incorporated into your will by reference. The company listed above only provides the program to list your digital assets, you then would go meet with a qualified Estate Planning Professional to have this list incorporated into your will.

Question #5 - Trusts
When should a Lawyer’s services be utilized?

Answer #5
There are many self-help kits on the internet that allow individuals to prepare and plan their own trusts; however, as the creation of a trust is complex and expensive in nature, we recommend that you obtain the expertise of a licensed professional who has experience in the estate planning process. It is always better to have the assistance of an experienced attorney to guide you through the challenging process.

Question #6 – Power of Attorney
I am in the military – contract basis. I am being deployed back to Afghanistan here shortly. I want to give my best friend the authority to pay my bills, take care of my mortgage, and take care of any other financial business while I’m gone. Would the Statutory Power of Attorney be the best vehicle to carry out my desires?

Answer #6
As provided on the first page of the MD Statutory Power of Attorney - The powers granted by the principal in the Statutory document are broad and sweeping. The power of attorney authorizes another person to make decisions concerning your property for you. Your agent will be able to make decisions and act with respect to your property (including your money) whether or not you are able to act for yourself. You should select someone you trust to serve as your agent. Unless you specify otherwise, generally the agent’s authority will continue until you die or revoke the power of attorney or the agent resigns or is unable to act for you. You need not grant all of the powers listed below. If you choose to grant less than all of the listed powers, you may instead use a Maryland Statutory Form Limited Power of Attorney and mark on that Maryland Statutory Form Limited Power of Attorney which powers you intend to delegate to your attorney-in-fact (the Agent) and which you do not want the Agent to exercise. The power of attorney becomes effective immediately unless you state otherwise in the Special Instructions.

*We recommend that you speak with a qualified Estate Planning Professional to ensure that you give only the power/authority you wish to your best friend to carry out your financial matters in your best interest.

Question #7 – Power of Attorney
What types of things can a POA cover?

Answer #7A POA can cover a wide variety of things, mainly dealings with property and finances. The principal may give the agent the authority to act in their behalf in regards to the following types of transactions:
• Real property transactions
• Tangible personal property transactions
• Stock & Bond transactions
• Commodity & option transactions
• Banking & other Financial institution transactions
• Business operating transactions
• Insurance & Annuity transactions
• Estate, trust & other beneficiary transactions
• Claims & Litigation
• Personal & Family Maintenance
• Benefits from Social Security, Medicare, Medicaid, or other Government programs or Military service
• Retirement plan transactions
• Tax matters

Question #8 - Trusts
What property can be transferred to a Trust?

Answer #8
Several types of property may be transferred to a Trust, and we can assist you through this process as a different method may be required for each type of property. The following types of property can be effectively transferred to a Trust:
• Personal property
• Automobiles
• Real Estate
• Bank Accounts
• Registered Stocks & Bonds
• Life Insurance
• Retirement Plans

Question #9 – Advance Directive/Living Will
Should I indicate/have a provision in my Will that provides my plans for my burial or in my Advance Directive or in both?

Answer #9
Considering that your Will - will not be seen until after your death, it would make sense to include any information concerning your funeral arrangements in your Advance Directive. If you do include information concerning your burial in your Advance Directive, you should also discuss these plans in detail with your immediate family members so that your wishes are known and carried out.

Question #10 - Wills
I don’t have much, but I don’t want what I do have going to any of my family members. I never married, don’t have any kids and I’ve worked very hard for what I do have. What would happen if I don’t set up a will? Can I give everything to a charity?

Answer #10
The Intestate Succession laws as provided by the Register of Wills for Maryland provides given your circumstances that the following will occur if you die without a will:
1. Parents of the decedent divide entire estate or surviving parent takes all;
2. Brothers/sisters of the decedent without heirs listed above-brothers and sisters divide estate equally (share of deceased sibling goes to their issue-nieces and nephews of the decedent);
3. Grandparents without other heirs listed above-grandparents divide entire estate or, if deceased, to their issue (see applicable law for details);
4. Great-grandparent without other heirs listed above-great-grandparents divide entire estate or, if deceased, to their issue (see applicable law for details);
5. Step-children-if there are no heirs listed above;
6. No living heirs or step-children-If decedent was a recipient of long-term care benefits under the Maryland Medical Assistance Program at time of death, net estate is paid to Department of Health and Mental Hygiene. Otherwise, the net estate is paid to the Board of Education.

If you do not want your assets going to your family members, you may in fact give everything to a charity by making that designation in your will.

MVP Law Group would like to thank everyone who contributed a question or comment.

Our next “Estate Planning Q & A Forum” is scheduled for Friday, August 26th, 2011!

Please remember to submit your questions/comments on our Website, Facebook or Twitter.

Estate Planning - Q&A Forum launches Friday, August 12, 2011

2011-08-04T08:22:00.000-07:00

MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.

Our first “Q & A Forum” will take place Friday, August 12, 2011. Act now and submit your questions!

To Prenup or Not to Prenup?

2011-04-13T07:54:00.000-07:00

According to a survey of American Academy of Matrimonial Lawyers, there has been a significant increase in couples choosing to have a prenuptial agreement in the last five years. Additionally, the lawyers surveyed reported a 52% increase in women requesting prenups.

First, what is a prenup or prenuptial agreement?
A prenuptial agreement is a document that both partners agree upon and sign before marriage that states how martial assets and debts would be distributed upon the death of either partner or divorce.

It’s advised for most everyone to get a prenup no matter how big your assets or real estate property. Those with children from previous marriages, a business or complicated investments are especially urged to have a prenup.

When considering a prenup it’s important for couples to discuss things beforehand and fully disclose all of their assets and debt. It also helps if the parties have a draft ready before going to see a lawyer.

South African "National Wills" Week

2010-10-07T11:04:00.000-07:00

The Law Society of Africa recently held its annual “national wills” week to encourage all South African citizens to get wills drawn up free of charge by Licensed Attorneys. When drafting a will there are a few tips and problems that can happen that you need to be aware of. Complications can arise in any size estate and it’s important to be aware of what do if those complications do arise.

The Fiduciary Institute of South Africa (FISA) advises individuals to constantly update their will due to a change in assets, relationships and/or other financial circumstances. Also, when choosing an executor or trustee for your will you should be sure to find out about their background and experience to make sure you pick the best person for the job. Other tips FISA gives are to make sure your local estate and any offshore assets don’t conflict, to research capital gains tax/estate duty/liquidity aspects to make sure you would be able to pay off all your outstanding debts, and how the marriage you may have can affect what rights your spouse has to your assets.

MVP Law Group profiled on Entrustet Blog

2010-08-03T08:27:00.000-07:00

Digital Asset Protection

Do you own Digital Assets? Domain names, email, paypal accounts...have you ever thought about what would happen to those assets when you pass away?

Entrustet.com has created an amazing free online tool that allows you to list all of your digital assets, determine whether those assets will be transferred or terminated, and designate beneficiaries for each asset. After creating the list, you should contact a Licensed Estate Planning Attorney experienced in dealing with digital assets in your state to assist you with the preparation of your estate planning documents.

MVP Law Group, a Maryland law firm, is familiar with the Entrustet digital asset tool and knows how to incorporate your digital assets into your estate planning documents - to protect your family and secure your legacy.

Contact MVP Law Group today to schedule a free initial consultation!

The Importance of Keeping one’s Affairs in Order

2010-06-24T08:19:00.001-07:00

Actor Gary Coleman died May 28, 2010 from a brain hemorrhage after suffering a fall in his home. Three weeks after his death, he was finally cremated after weeks of legal battles. Since Mr. Coleman’s death, two wills have surfaced, one allegedly created in 1999, and an addendum to a will dated 2007 that names his former wife as sole heir to the actor’s estate.

Click here to read the entire article.

Here is just one story where the importance of keeping one’s affairs in order could have avoided the confrontation and legal battles that followed the actor’s death. Whether celebrity or not, proper planning for the inevitable may avoid the confusion and frustration, and legal/money scuffles after your death.

Last Will & Testament
You have worked your entire life to create a legacy to be passed on to your family, why not execute a Will that will protect your property, your family and carry out your wishes after you are no longer here to oversee how things are carried out. Plan now to protect for later.

Besides distributing property, your will may name a guardian for any minor children. It may also name a personal representative/executor to carry out the terms of the will. If you have pets, you can even name a guardian and provide arrangements for their care. Additionally, with a will you can create a trust and designate a trustee to handle the estate.

Talk with your family, discuss your wishes and then execute legal documents (wills/trusts) that will carry out those wishes long after you’re gone.

Advance Directive
Gary Coleman’s ex-wife, Shannon Price, ordered doctors at Utah Valley Regional Medical Center to disconnect his life support a day after he fell into a coma. With an executed HealthCare Advance Directive you prepare in advance for the inevitable.

The Advance Directive allows for you to inform your health care providers of your medical wishes in case something where to occur that would leave you unable to communicate your wishes to your doctor/hospital/family members and allows for you to designate a health care agent to make sure that your wishes are carried out, and to make decisions on issues not addressed in your Advance Directive in your best interest.

The Advance Directive normally involves these types of issues: Admission and/or Discharge from Hospital, Hospice, Nursing Home, or other medical facility; Request to Receive Protected Health Records as your Personal Representative under HIPAA; Withholding/Withdrawing Life-Prolonging Procedures; Withdrawing Food & Water (Artificially Administered Nutrition & Hydration); Palliative Care; Authorizing Organ, Tissue or Body Donation; Authorizing an Autopsy; Authorizing Disposition of Your Remains; Nominating a Guardian; and Pregnancy (you may indicate whether or not you want Health Care directions carried out in the event of your pregnancy). However, with an Advance Directive, you may specify your care for different situations, or if you wishes are simple, you may leave all decisions to your health care agent to act in your best interest.

We know that NO ONE wants to plan for the inevitable; however, having the proper estate planning protections in place is an investment in your future and the future of your family. We all are aware of the legal battles and emotions that may arise from conflicting legal documents and disgruntled family members, so it is best to discuss these issues now and put them in writing for later so that hopefully, your wishes are carried out when the time comes.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

Post Marital/Separation Agreements – RESOURCES RESOURCES RESOURCES

2010-06-14T12:38:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I have provided several different resources for you to find out any and all things related to Post-marital/Separation Agreements.

POST-MARITAL/SEPARATION AGREEMENT - RESOURCES:

 Divorce HG.com
Separation Agreements

 About.com: Marriage
Postnuptial Agreements: Latest Trend in Promoting Harmony in Marriage

 The Boston Globe
Sealing a contract after the Marriage: Couples spell out duties, finances

 Equality in Marriage Institute
Creating a Postnuptial Agreement

 American Bar Association
Prenuptial and Postnuptial Agreements

 DivorceSupport.com
Separation Agreements

 eHow
How Long Does A Marital Separation Agreement Last?

 The Standard Legal Law Library
Marital Separation Agreement: an Overview Q & A

 Divorcenet.com
Maryland Separation Agreement FAQs

 Ezine Articles
Can a Martial Separation Ever Save a Marriage?

If you know of any additional credible resources, please leave a comment below with the URL. Thank you!

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

Introduction – Post-marital/Separation Agreements

2010-06-03T12:39:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I will provide you with basic information regarding Post-marital/Separation Agreements. Most people are not familiar with the term Post--marital Agreement, yet it is identical to and operates in the same manner as a Separation Agreement.

Preparing a Post-Marital agreement is a process that can be a helpful experience for some and an unpleasant experience for others. However, having a post-marital agreement in place is better than having a Court of Law determine what’s in your best interest.

We have assembled a brief Q&A regarding the basics related to the planning and preparation of your Post-Marital Agreement.

What is a Post-Marital Agreement?
A post-martial agreement is an agreement made between spouses after marriage. The post-martial agreement is similar to the pre-nuptial agreement; however, it is entered into after the marriage of the parties, and normally when circumstances have changed. It is a way for couples to legally resolve property distribution matters, divide debt, and provide for or deal with children. The agreement must be in writing and signed freely and voluntarily by both parties, with fair and reasonable terms free from fraud and duress to be enforceable in court. The agreement may provide specific financial benefits to ensure that if your spouse fails to live up to their end of the agreement, a court will enforce it.

Should I execute a post-marital agreement?
The post-marital agreement is growing in popularity and as a result many more individuals are deciding to enter into post-martial agreements for various reasons. Some of those reasons have been: failure to create a pre-nuptial agreement; change in financial status; disagreement about finances and want a resolution; starting a business, and a host of other reasons for making the decision to create a post-marital agreement.

However, a couple should be aware of the advantages and disadvantages involved with a post-marital agreement. Most use the agreement as a blue print for eventual divorce, but this type of agreement has been used as an efficient and effective way to save a marriage. The very process of working with your spouse on this type of arrangement is a positive exercise for most couples.

What types of things can a post-marital agreement cover?
Just like a pre-nuptial agreement, a post marital agreement may cover a variety of issues:
• Alimony/spousal support
• Property rights (real and personal)
• Personal rights
• Household responsibilities
• Child Custody and Visitation
• Child Support & Support Guidelines
• Child-rearing issues
• Debts
• Health Insurance coverage
• Life Insurance coverage
• Retirement & Survivor benefits
• Business Interests
• Bank Accounts & Investments
• Income Tax Returns
• Jurisdiction/Controlling Law
• Merger/Incorporation clauses
• Attorneys fees
• Waiver clauses

Should I seek the services of an experienced Attorney?
Yes, you should seek the services of an experienced Attorney to draft a post-marital agreement that meets your specific needs. We also suggest that each spouse obtain independent counsel to ensure the rights and interests of both of you are fairly represented.

Can I revoke a post-marital agreement?
A Post-Marital Agreement is revocable if signed in writing by both parties, freely and voluntarily absent fraud and duress.

Can it be modified?
Certain provisions may be modified UNLESS there is an express waiver or provision stating that the particular provision is not subject to court modification. Additionally, a provision may be included in the agreement that provides that modification will not occur except on the occurrence of an express condition (cohabitation by the supported spouse, substantial change in circumstances).

Provisions dealing with child support/custody/care/education and visitation are always going to be modifiable by a Court if in the “best interests of the child,” even if there is a waiver or other provision providing otherwise.

How is it enforceable?
A post-marital agreement standing alone has the same force as an independent contract; however, if the separation agreement is incorporated or merged into a divorce decree, then the type of enforcement varies.

If incorporated into the divorce decree, the Post-Marital agreement will be enforceable via contempt proceedings and as an independent contract.

If merged with the divorce decree, the agreement will only be enforceable through contempt proceedings.

Separation agreements provide a way to ease tension and have become favored by the courts as a peaceful means of terminating marital strife and discord. Although many may see entering into a separation agreement as a romance killer, or a white line to divorce; it has the same purpose of a pre-nuptial agreement; to lay out the rights, duties and responsibilities of the parties during and upon termination of the marriage through death or divorce. Even if the underlying interest is to obtain a divorce, a separation agreement is a way to work it out without having a Judge determine the terms of your separation.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, JUNE 15, 2010

Prenuptial/Premarital Agreements – Need More Information?

2010-06-02T11:52:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I have provided several different resources for you to find out any and all things related to Prenuptial/Premarital Agreements.

PRENUPTIAL/PREMARITAL AGREEMENT - RESOURCES:

 Prenuptial Agreements
Your Guide to Prenuptial Agreements

 About.com: Marriage
Prenuptial Marriage Agreements

 I Do! Take Two: Guide to Second Weddings, Second Marriage and Vow Renewals
Prenuptial Agreements

 Equality in Marriage Institute
Creating a Prenuptial Agreement

 USA Today
Prenuptial Agreements: Unromantic, but Important

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, JUNE 8, 2010

Introduction – Prenuptial Agreements/Premarital Agreements

2010-05-18T11:18:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I will provide you with basic information regarding Prenuptial Agreements/Premarital Agreements. Most people are not familiar with the term Pre-Marital Agreement, yet it is identical to and operates in the same manner as a Pre-Nuptial Agreement.

Preparing a Pre-Marital agreement is a process that involves significant planning and preparation for both parties to the agreement. We have taken the time to assemble a brief Q&A regarding the essentials related to the planning and preparation of your Pre-Marital Agreement.

What is a Pre-Marital Agreement?
A pre-martial agreement is an agreement made between two people who are contemplating marriage. The agreement requires full and frank disclosure from both parties. It provides a list of all property each person owns and their accompanying debt.

The agreement also lays out the rights, duties and responsibilities of the parties during and upon termination of the marriage through death or divorce. This agreement must be in writing and signed by both parties, with fair and reasonable terms free from fraud and duress to be enforceable in court. The agreement will become enforceable upon the marriage of the parties.

Should I get a prenuptial?
Prenuptial agreements used to be looked down upon; however, they now are becoming more acceptable in our society. You should definitely consider entering into a prenuptial agreement if you have children from a previous marriage, you own significant amounts of property, have previously been married, have a salary over $100,000, or own a business and/or family business. There are four main purposes of a prenuptial agreement: to avoid costly litigation, to protect family and/or business assets, to protect against creditors, and to give you assurance that marital property will be disposed of properly. If you do not have a prenuptial, the State of Maryland will divide the assets of the marital union based on an equitable distribution, equitable does not necessarily mean “equal,” in the event of a divorce.

Should I seek independent counsel?
YES, absolutely. Each party to the marriage should seek independent counsel before entering into a prenuptial agreement so that there is full and frank disclosure, a full understanding of the rights, duties and responsibilities of the parties to the agreement, and to ensure that the agreement is free from duress and fraud. If one party seeks counsel and the other does not, and the terms of the agreement are unfavorable to one party, the entire agreement may be considered unenforceable in a court of law.

What must be disclosed in a pre-marital agreement?
Certain information must be provided by both parties to the agreement, that particular information is provided below:
• Checking accounts
• Certificates of Deposit, Savings Accounts
• Stocks & Bonds
• Mutual Funds
• Real Estate
• Business Interest/Ownership
• Retirement Benefits (IRA, 401(k), other retirement benefits)
• Life Insurance polices/annuities
• Other Trusts, Anticipated Inheritance
• Personal Property (cars, boats, etc)
• Other Personal Property (home furnishings, jewelry, collections, etc)
• Liabilities (home mortgage, debts, etc)
• Other Assets
• Most recent personal federal income tax return

What types of things may be included in a pre-marital agreement?
A prenuptial agreement can include a wide array of things. It may include the following types of provisions:
• Alimony/Spousal Support or Waiver thereof
• Use or nonuse of Joint Bank Accounts
• Filing of Tax Returns
• Agreements about specific purchases or projects
• Purchasing a home/starting a business
• Use/nonuse/limited use of Credit Cards
• How to settle future disagreements
• Lifestyle clauses
• Right to inherit
• Right to be named beneficiary of life insurance policy and/or retirement benefits
However, personal agreements as to household chores, exercising, cooking, etc should be kept out of the agreement, as they are not binding in court, and may cause a Judge to take your pre-martial agreement less seriously.

What CANNOT be included in a pre-marital agreement?
Prenuptial agreements have been drafted to include almost anything; however, there are certain provisions that cannot be included and if they are, will be stricken and unenforceable. Those provisions are provided below:
• Illegal actions and issues that are against public policy
• Restricting child support, custody or visitation rights
• Financial incentives for divorce
Almost anything else may be included in a prenuptial agreement and have been included in such agreements.

Can I revoke my pre-marital agreement?
A pre-martial agreement may be revoked after the marriage by written agreement signed by both parties, free from fraud and duress.

**Words of Advice**:
Speak with your significant other regarding the benefits, and disadvantages of a prenuptial agreement before seeking the assistance of experienced attorneys. It will make the whole process and the final document more balanced if you have the necessary time and patience to discuss your options with your partner before preparing the document. It’s best to have a written outline prepared beforehand of what you want included in your prenuptial agreement.

If you or a loved one is contemplating a prenuptial agreement, think about it, discuss it with your partner, and contact our law firm for more information.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, JUNE 1, 2010

Advance Directive – Need More Information?

2010-05-11T06:44:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I have provided a plethora of resources for you to find out any and all things related to the Advance Directive, otherwise known as a Living Will or Health Care Power of Attorney.

ADVANCE DIRECTIVES RESOURCES:

 American Medical Association
Advance Care Directives

 American Hospital Association
Put It in Writing

 National Cancer Institute
Advance Directives

 American Heart Association
Insurance, Legal Issues and Advance Directives

 The AGS Foundation for Health in Aging
Advance Care Planning & Advance Directives

 Caring Connections
Planning Ahead

 National Alliance on Mental Illness
Advance Directives

 American Bar Association
Health Care Advance Directives

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MAY 18, 2010

What is an Advance Directive?

2010-05-04T05:41:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I will inform you of the definitions for the most basic terms used. I will also provide you with a general overview of what an Advance Directive (Living Will/Health Care Power of Attorney) is and how it is used.

DEFINITIONS:
 Advance Directive -
An advance directive is your life in your terms. It allows you to document your wishes concerning your health care. It is effective upon signature when signed in front of the required amount of witnesses. The State of Maryland has combined the living will and health care power of attorney and uses the term “Advance Directive”.

 Living Will -
A living will allows you to leave instructions for your health care treatment. It usually provides specific directions about the course of treatment that is to be followed by health care providers and caregivers. A living will may be general or very specific, a specific living will may include information regarding an individual's desire for such services such as analgesia (pain relief), antibiotics, hydration, feeding, and the use of ventilators or cardiopulmonary resuscitation.

 Health Care Power of Attorney -
A health care poa authorizes someone appointed by you to make decisions on your behalf concerning your health care when/if you are incapacitated.

 Health Care Proxy -
A health care proxy is a document that allows you to appoint an agent to make health care decisions in the event that you are incapable of executing such decisions. Once the document is drafted, you may continue to make health care decisions as long as you are still competent to do so.

 Limited POA -
A limited POA may only encompass certain types of transactions and/or may be limited in duration. It may involve the selling of real estate, the closing of a bank account, or it may be valid for the time that you on vacation outside of the country, etc. Limited POAs are drafted to fit individual needs on a one-time basis or for a limited period of time and are usually your best choice.

 Durable POA -
A durable POA is effective upon signature, or at a designated time and will continue to be effective if the Principal becomes incapacitated, disabled or incompetent.

WHAT IS IT?
Advance Directives are documents in which you express your healthcare wishes and appoint a person to make decisions for you if, someday, you can no longer speak for yourself. If you do not prepare health care documents, the state law tells your doctors what to do.

The advance directive allows you to make decisions concerning the following types of medical procedures/health care issues: Admission and/or Discharge from Hospital, Hospice, Nursing Home, or other medical facility; Request to Receive Protected Health Records as your Personal Representative under HIPAA; Withholding/Withdrawing Life-Prolonging Procedures; Withdrawing Food & Water (Artificially Administered Nutrition & Hydration); Palliative Care; Authorizing Organ, Tissue or Body Donation; Authorizing an Autopsy; Authorizing Disposition of Your Remains; Nominating a Guardian, and in many states Pregnancy (you may indicate whether or not you want Health Care directions carried out in the event of your pregnancy).

With an Advance Directive in place, your health care directions will be carried out in the event that you are unable to communicate with your doctor, hospital, and/or loved ones.

HOW IT WORKS?
You should distribute copies of your Advance Directive to your agent, doctors, or medical facility most likely to treat you, otherwise it will be wasted time, money and words on a sheet of paper. Your Advance Directive should be in the hands of the people who need to know about it, so that your health care directions are carried out in accordance with your wishes.

If your Advance Directive is valid (signed by the appropriate amount of witnesses, and the person whom you have listed as your health care agent is not in violation of State law), then your agent, doctors and medical facility most likely to treat you must follow your wishes regarding your health care treatment.

We hope that the information presented in this post is helpful for our readers. If you have any questions or concerns, please address them in the comment box provided below.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR WEDNESDAY, MAY 11, 2010

Introduction to Advance Directives – The Basics

2010-04-27T05:46:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

We will be posting about "Advance Directives" for the next two weeks. Our postings will contain the most basic information about advance directives otherwise known as a Living Will or Health Care Power of Attorney.

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

For those that have questions surrounding the "Advance Directive" please take the time to review the "Question & Answer" discussion we have created below.

o What is an Advance Directive?
An advance directive is similar to the Power of Attorney which grants authorization to act on someone else’s behalf in matters relating to their health care. In order to make a valid Advance Directive, you must be at least 18 years of age, able to understand what the document means, what it contains, and how it works.

o What is the purpose of an Advance Directive?
The purpose of having an Advance Directive is to have a legal document in place which sets out instructions and/or wishes for your medical care, in case something where to occur that would leave you unable to communicate your wishes to your doctor/hospital/family members.

o What’s involved with an Advance Directive? An Advance Directive normally involves these types of issues:
• Admission and/or Discharge from Hospital, Hospice, Nursing Home, or other medical facility
• Request to Receive Protected Health Records as your Personal Representative under HIPAA
• Withholding/Withdrawing Life-Prolonging Procedures
• Withdrawing Food & Water (Artificially Administered Nutrition & Hydration);
• Palliative Care
• Authorizing Organ, Tissue or Body Donation
• Authorizing an Autopsy
• Authorizing Disposition of Your Remains
• Nominating a Guardian
• Pregnancy (you may indicate whether or not you want Health Care directions carried out in the event of your pregnancy)

However, with an Advance Directive, you may specify your care for different situations, or if you wishes are simple, you may leave all decisions to your health care agent to act in your best interest.

o Who can I name as my Health Care Agent?
You should appoint someone who you trust, who is reliable, and who you have shared your medical care concerns and/or wishes with, as your Health Care Agent. You may appoint your Attorney as your Health Care Agent, an immediate family member, or even a trusted friend. You may not name an owner, operator, or employee of a health care facility where you are/or have received care to be your health care agent. We recommend that you name two Health Care Agents in the event that your first choice is unavailable for some reason to act in your best interests.

o Should I execute an Advance Directive?
You should execute an Advance Directive for the mere purpose that life is full of unexpected events and issues. With an Advance Directive in place, your health care directions will be carried out in the event that you are unable to communicate with your doctor, hospital, and/or loved ones. Having an Advance Directive will save your family time and money.

o Can I revoke my Advance Directive?
You may revoke your Advance Directive at any time. You are completely in control of your health care directions, and if your desires change at any time, you should destroy the original and execute a new Advance Directive to reflect your wishes. You should also inform all who have a copy to return it to you to be destroyed, and let them know that you have revoked it, as your health care directions have changed.

o Should I distribute copies of my Advance Directive to my physician/insurance plan/immediate family members?
You should distribute copies of your Advance Directive to your agent, doctors, or medical facility most likely to treat you, otherwise it will be wasted time, money and words on a sheet of paper. Your Advance Directive should be in the hands of the people who need to know about it, so that your health care directions are carried out in accordance with your wishes.

o Does the MVP Law Group offer a bundle deal for executing both an Advance Directive and a POA?
Yes! Considering the fact that they are similar documents, both allowing someone else to act on your behalf if you are unable to do so. We offer a bundle deal for the preparation and execution of the Advance Directive and POA, a deal that you do not want to miss! Please contact our office for more information!

As an Individual in the United States, health care has become an extreme concern in this day and age. As such it is important to have protections in place in case you are unable to relay your health care wishes to your medical providers and/or immediate family members. Your health care directions are unique to you as an individual, encompassing your religious and/or spiritual beliefs, family traditions, and sincere values. We at the MVP Law Group want to help you prepare so that you are taken care of according to your wishes in the event that something would happen to you.

Act now and have your health care plan in place.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MAY 4, 2010

POA - Still in Need of More Information ????

2010-04-20T13:02:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I have provided a plethora of resources for you to find out any and all things related to the Power of Attorney (legal document).

POA RESOURCES:
 American Bar Association Section of Real Property/Trust & Estate Law (ABA)
o Estate Planning FAQs

 Association for the Advancement of Retired Persons (AARP)
o Understanding Power of Attorney

 National Caregivers Library
o What is Power of Attorney

 Internal Revenue Service (IRS)
o Federal Taxes Representation – Power of Attorney Information

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, APRIL 27, 2010

POA – What is it?

2010-04-13T12:05:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I will inform you of the definitions for the most basic terms used. I will also provide you with a general overview of what a POA is and how it is used.

DEFINITIONS:
 Power of Attorney -
• A power of attorney is a written instrument executed by one person, called the principal/grantor, which designates another person, called the agent/attorney-in-fact, to perform acts on the principal’s/grantor’s behalf.

 Principal/Grantor -
• The person who creates the Power of Attorney and thereby authorizes the agent to act on his/her behalf.

 Agent/Attorney in Fact -
• The person named in a Power of Attorney that must act on behalf of the Principal.

 General POA -
• A general POA gives the Agent the full power to act on behalf of the Principal and is effective upon signature, or at a designated time and will remain effective until the Principal becomes incapacitated, disabled or incompetent.

 Limited POA -
• A limited POA may only encompass certain types of transactions and/or may be limited in duration. It may involve the selling of real estate, the closing of a bank account, or it may be valid for the time that you on vacation outside of the country, etc. Limited POAs are drafted to fit individual needs on a one-time basis or for a limited period of time and are usually your best choice.

 Durable POA -
• A durable POA is effective upon signature, or at a designated time and will continue to be effective if the Principal becomes incapacitated, disabled or incompetent.

WHAT IS IT?
A Power of Attorney (POA) is the creation of a fiduciary relationship between an Agent and a Principal, where the Agent must be completely honest and loyal to the wishes of the Principal in their dealings.

In short, a POA is just a document that authorizes one person to handle the affairs of another. The document can cover many topics, from what happens to you in the event that you are incapacitated to make decisions about your healthcare, and what is to be done with your estate after death, to the investment of your money or the purchasing of real estate. It can be customized like any other contract.

If someone has appointed you or asked you to be their agent/attorney in fact, we advise you to consult with a licensed Attorney if you are unsure about your responsibilities/liabilities as an agent/attorney in fact.

HOW IT WORKS?
The Power of Attorney is effective as soon as the Principal signs it, unless the Principal states that it is only to be effective upon the happening of some future event.

A POA is one of the strongest legal documents that an individual can give to another person. A POA can be used to create new debts, buy or sell property, and deplete your bank account. It is important to remember that YOU will be held responsible for the acts of your agent. Thus, you must exercise great care in choosing your agent.

A POA will be accepted as valid for most purposes. However, there are some actions that cannot be accomplished by using a POA because these actions are so personal in nature they cannot be delegated to another. In addition, some businesses require a power of attorney to be in a certain form or be recorded. For example, your bank may accept only a special power of attorney with the account number specifically listed. Whenever possible, you should check with the business before obtaining or using a power of attorney to be sure it will be accepted.

After being certain that the POA gives you the authority to do what you want to do, take the Power of Attorney (or a copy) to the third party. Explain to the third party that you are acting under the authority of the POA and are authorized to do this particular act. Some third parties may ask you to sign a form stating that you are acting properly. If it states something that you do not understand in your capacity as Agent for the Principal, you may wish to consult your attorney prior to signing it. The third party should accept the POA and allow you to act for the Principal. When acting as an Attorney-in-Fact, always make that clear when signing any document.

EXAMPLE - Tiffany Reid, by Nottingham Smith as her Attorney-in-Fact. In this example, Tiffany Reid is the Principal, and Nottingham Smith is her Agent/Attorney-in-Fact signing in his representative capacity.

We hope that the information presented in this post is helpful for our readers. If you have any questions or concerns, please address them in the comment box provided below.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, APRIL 20, 2010

Introduction to the POA “Power of Attorney” Document – The Basics

2010-03-30T10:26:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

We will be posting about the "POA" for the next two weeks. Our postings will contain the most basic information about the power of attorney document and how it is used.

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

For those that have questions surrounding the "POA" please take the time to review the "Question & Answer" discussion we have created below.

o What is a Power of Attorney (POA)?
 A Power of Attorney is the grant of authorization to act on someone else’s behalf in a legal or business matter. The person authorizing the action is deemed the Principal (grantor), and the person authorized to act is the Agent (Attorney-in-Fact, or any competent adult). It is the creation of a fiduciary relationship between an Agent and a Principal, where the Agent must be completely honest and loyal to the wishes of the Principal in their dealings. A POA normally ends when the Principal dies; however, a POA can end upon the Principal’s choosing.

o What does a POA do?
 A POA allows an individual who may be elderly, sick, planning to be out of state or the country, or otherwise unable to act on their own behalf to authorize another to act in their best interests in regards to their property and business transactions.

o Should I execute a POA?
 If any of the above reasons apply to your situation, you should execute a POA. Additionally, if any of the above situations were to occur, your family members would have to proceed to court so that they could act on your behalf to carry out specific transactions.
 An executed POA will hold up in Court, and in the long run it will save you and your family time and money.

o Can I revoke a POA?
 A POA can be revoked at any time, and the POA should clearly provide in its language that the Principal may revoke it.

o What types of things can a POA cover?
 A POA can cover a wide variety of things, mainly dealings with property and finances. The principal may give the agent the authority to act in their behalf in regards to the following types of transactions:
• Real property transactions
• Tangible personal property transactions
• Stock & Bond transactions
• Commodity & option transactions
• Banking & other Financial institution transactions
• Business operating transactions
• Insurance & Annuity transactions
• Estate, trust & other beneficiary transactions
• Claims & Litigation
• Personal & Family Maintenance
• Benefits from Social Security, Medicare, Medicaid, or other Government programs or Military service
• Retirement plan transactions
• Tax matters

o What is the difference between a general, limited and durable POA?
 A general POA gives the Agent the full power to act on behalf of the Principal and is effective upon signature, or at a designated time and will remain effective until the Principal becomes incapacitated, disabled or incompetent.
 A limited POA may only encompass certain types of transactions and/or may be limited in duration. It may involve the selling of real estate, the closing of a bank account, or it may be valid for the time that you on vacation outside of the country, etc.
 A durable POA is effective upon signature, or at a designated time and will continue to be effective if the Principal becomes incapacitated, disabled or incompetent.

Life is full of unexpected events, so why not have the necessary protections in place in case something where to occur. Having an executed POA in these current times is a protection that one should not be without. Certain situations could occur, like unexpected trips outside of the U.S., possible deportation proceedings, incarceration, or week-long destination trips on cruise ships, which would make it extremely difficult for you to conduct business transactions, handle bank accounts closures, sell certain real estate, or pay off a mortgage without a proper POA in place.

Act now and avoid the chaos of the unexpected.
Why not have a POA that will provide protection for all that you’ve worked for.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, APRIL 6, 2010

Different Types of Trusts

2010-03-24T07:04:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please remember feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

This entry will focus on the different types of trusts; their advantages, disadvantages and unique qualities/purposes.

 Testamentary Trusts
o A testamentary trust is created by a will. The will itself contains language that creates the trust and since a will does not become effective until death, the trust does not exist until death;
o Testamentary trusts are distinguished from inter vivos trusts which are created during the settlor's lifetime;
o In practical terms, testamentary trusts tend to be driven more by the needs of the beneficiaries (particularly infant beneficiaries) than by tax considerations, which are the usual considerations in inter vivos trusts;
o A testamentary trust provides a way for assets devolving to minor children to be protected until the children are capable of fending for themselves;
o The trustee is required to meet with the probate court regularly and prove that the trust is being handled in a responsible manner and in strict accordance with provisions of the will which created the trust;
o The trustee must be prepared to oversee the trust for its duration, which involves a considerable commitment in time, possible emotional attachment, and legal liability.

 Living Trusts
o A living trust is created during a person's lifetime to either save money on taxes or set up long term property management;
o With a living trust, your assets (your home, bank accounts and stocks, for example) are put into the trust, administered for your benefit during your lifetime, and then transferred to your beneficiaries when you die;
o Most people name themselves as the trustee in charge of managing their trust's assets. This way, even though your assets have been put into the trust, you can remain in control of your assets during your lifetime. You can also name a successor trustee (a person or an institution) who will manage the trust's assets if you ever become unable or unwilling to do so yourself.
o Young married couples without significant assets and without children, who intend to leave their assets to each other when the first one of them dies do not need a living trust and would not benefit from having a living trust. Other persons who do not have significant assets and have very simple estate plans also do not need a living trust;
o Because living trusts are not under direct court supervision, a trustee who does not act in your best interests may, in some cases, be able to take advantage of you;
o Living trusts are often used because they may allow assets to be passed to heirs without going through the process of probate. Avoiding probate will normally save substantial costs, time, and maintain privacy.

 Life Insurance Trusts
o A life insurance trust is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies;
o If the insured is the owner of the policy, the proceeds of the policy will be subject to estate tax when she dies; however, if she transfers ownership to a life insurance trust, the proceeds will be completely free of estate tax;
o The insured cannot serve as trustee of the life insurance trust. That means that he will have to find or hire a third party trustee. However, many banks and trust companies offer reduced fees for life insurance trusts because they involve essentially no investing decisions;
o Upon the death of the insured, the Trustee invests the insurance proceeds and administers the trust for one or more beneficiaries;
o Insurance trusts may be funded or nonfunded. A funded life insurance trust owns both one or more insurance contracts and income producing assets. The income from the assets is used to pay some or all of the premiums. Funded insurance trusts are not commonly used;
o Many people find that the tax saving potential of a life insurance trust is worth the cost and hassle. It allows you to remove from your estate a significant asset that you are unlikely to want access to during your life. And it ensures that the life insurance proceeds go 100% to the beneficiaries, not the federal government.

 Special Needs Trusts (Supplemental Needs Trust)
o A special needs trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property (assets) which is intended to be held for their benefit;
o A special needs trust provides for the needs of a disabled person without disqualifying him or her from benefits received from government programs such as Social Security and Medicaid;
o A Supplemental Needs Trust provides for supplemental and extra care over and above that which the government provides;
o According to Congress a Supplemental Needs Trust must be irrevocable. A properly-drafted Trust will include provisions for Trust termination or dissolution under certain circumstances, and will include explicit directions for amendment when necessary;
o This type of trust can be established at any time before the beneficiary’s 65th birthday. It is very common to create a Special Needs Trust early in a child’s life as a long term means for holding assets to benefit the disabled family member;
o A special needs trust can be funded through a will or gifts from relatives and friends made directly to the trust instead of to the disabled child. Many special needs trusts are funded through "survivorship" or "second-to-die" life insurance policies that cover both parents and pay out on the death of the second parent.

 Charitable Remainder Trusts
o It's an irrevocable trust designed to convert an investor's highly appreciated assets into a lifetime income stream without generating estate and capital gains taxes;
o Charitable trusts are a handy tax-saving tool. But they can also greatly benefit a charity of your choice;
o Usually cash or readily marketable securities, including bonds are the types of assets commonly used to establish a CRT. But real estate, works of art and other assets may be deemed acceptable. The marketability of the asset is a prime consideration in funding a charitable remainder trust. Establishing a CRT may be especially advantageous if you have assets, like low-dividend stocks, that have been generating little or no income;
o The disadvantage is that the assets are permanently tied up or committed;
o There are two kinds of CRTs: the charitable remainder unitrust provides variable income; the charitable remainder annuity trust provides fixed income;
o Anyone who is subject to paying capital gain taxes on appreciated assets, whose estate is subject to estate taxes, would like to benefit charity, and has a need for income is a candidate to benefit greatly from a CRT.

 Dynasty Trusts
o A dynasty trust is an estate-planning tool that provides income and support to children and future generations of your family. Instead of wealth passing directly to your children, the assets reside in the trust, which helps protect them from estate taxes, the consequences of divorce, creditors and uncontrolled spending, while remaining in the family for generations;
o Most dynasty trusts are typically structured to continue in existence for the maximum period of time permitted under the applicable state law in which the trust is located;
o Dynasty trusts should only be funded with certain types of assets;
o The trust's assets are valued at the amount they were worth when the trust was created as long as they stay in the trust. Any appreciation generally is exempt from estate taxes;
o The trust's structure can be as flexible as possible to protect the grantor and beneficiaries from the unknown;
o This type of trust protects future generations against uncertainties and provides a variable income for them, stretching out such payments as long as legally possible.

For more information on a particular type of trust, our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MARCH 30, 2010 REGARDING THE POWER OF ATTORNEY DOCUMENT.

Preparing/Drafting a Trust Document

2010-03-18T11:32:00.000-07:00

Welcome Back to the MVP Estate Planning Blog!

Please remember feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

This entry will focus on planning/preparing and drafting a Trust document– what it is, what it can include, benefits, etc.

There are roughly eight steps in the process of developing a valid trust document:

1. Decide what type of trust best suits your particular situation. You may already know what you are looking for, but if not, an experience lawyer will be able to help you determine which type of trust would satisfy your goals.

2. Decide what items to leave in the trust. Several types of property may be transferred to a Trust. The following types of property can be effectively transferred to a Trust:
a. Personal property
b. Automobiles
c. Real Estate (Real property)
d. Bank Accounts
e. Registered Stocks & Bonds
f. Life Insurance
g. Retirement Plans

3. Decide who will inherit your trust property.

4. Choose someone to be your successor trustee.

5. Choose someone to manage children's property (if applicable to your situation).

6. Prepare the trust and sign it in front of a notary.

7. Transfer title of property to yourself as trustee.

8. Store your trust document safely.

Now for more general information:

A trust is a legal agreement that allows you (the trustor) to transfer property and assets for the benefit of someone else (the beneficiaries). Beneficiaries can be individuals, businesses, or charitable organizations. You place your assets under control of a trustee, an individual or organization that manages and distributes the assets as set out in a trust document specifying your wishes.

A trust can give you:
• Control--by protecting your beneficiaries from fraud or mismanagement of your assets, especially in case of your disability or death.
• Continuity--by continuing to manage your assets appropriately if you encounter a life-changing event.
• Privacy--by keeping your affairs out of the public record. A will becomes a public record when it's filed with a probate court upon your death, so if you use just a will for estate planning, anyone can access it.
• Tax advantages--by distributing your assets in a way that minimizes your tax burden, or that of your beneficiaries.

There are many types of trusts, each designed to accomplish specific goals. Trust agreements can be great tools, but they're complex, so it's important to understand how they work and how to get started.

To establish a trust, the trustor develops a trust agreement, usually with the help of an attorney. This legal contract specifies the property the trust covers; names the trustee(s); and includes instructions for holding and investing the property, and for disbursing the property and any related income.

A trust can govern the management of diverse assets--money, real estate, an insurance policy, a business, or stocks--during the trustor's lifetime or after his or her death or disability. Once a trust agreement is activated, the trustor no longer owns the assets; they're the property of the trust. The trust is a separate entity.

The trustee has a fiduciary responsibility, which means that the individual or organization is legally obligated to act impartially, in the best interest of all beneficiaries, and may not seek personal benefit from trust transactions. It's important to select a trustee with sufficient knowledge and experience to manage the trust skillfully. For example, if the trust includes a stock portfolio, the trustee must know how to invest the stocks appropriately. Trustees also must keep complete records of trust activity, and file tax returns and make tax payments for the trust.
Trustors can select individuals, such as family members, as trustees. In some cases they can act as their own trustees. However, because the responsibilities are complex, many select an organization with trust services representatives specially trained to administer trusts.

Trusts are classified as either living or testamentary. A living, or inter vivos, trust is created during the trustor's lifetime, while a testamentary trust is created as part of a will and becomes active upon the trustor's death.

Property covered by a living trust usually doesn't have to go through probate when the trustor dies. (Probate is a required legal validation that a person's will is genuine. The term also broadly refers to the administering of an estate.) With a testamentary trust, property must go through probate before it becomes subject to the trust agreement. Both types of trusts can bring tax advantages.

A living trust can be revocable, meaning that the trustor can amend or cancel it at any time. Trustors usually use a revocable living trust when they don't want to lose permanent control of the assets, or they want the flexibility to change their trustee arrangements in the future.

A living trust also can be irrevocable, meaning that the trustor can't change or cancel it after signing the agreement. A testamentary trust is always revocable because it's part of a will, which can be changed at any time.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MARCH 23, 2010 FOCUSING ON THE DIFFERENT TYPES OF TRUSTS AVAILABLE.

Introduction to Trusts – The Basics

2010-03-04T12:39:00.000-08:00

Welcome Back to the MVP Estate Planning Blog!

We will be posting about "Trusts" for the next two weeks. Our postings will contain some of the most basic information about trust planning, drafting and general information on the most used types of trusts. Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

For those that have questions surrounding the "Trust" please take the time to review the "Question & Answer" discussion we have created below.

o What is a Trust? A trust is a legal person that comes into existence when an individual signs a legal document which contains certain provisions. A grantor/trustor is the creator of the trust and the one who transfers property to the trust. A trustee is the person who has a fiduciary duty to protect the assets of the trust, whose powers are spelled out in the trust, and who must make sure that the purposes of the trust are carried out. A beneficiary is one who benefits from the trust. There can be two types of beneficiaries in a trust document, an income beneficiary and a principal beneficiary. An income beneficiary receives only income from the trust (i.e.; savings account bond, dividends from stock, rental income from Real Estate, etc) A principal beneficiary receives the actual trust assets (i.e., monies in a savings account, bond, stock or rental Real Estate, etc)

There are two basic types of trusts, an intervivos trust, and a testamentary trust. An intervivos trust is created during one’s life, and can be either revocable or irrevocable. Whereas, a testamentary trust is created under the terms of an individual’s will and does not become effective until an individual’s death.

A trust is a complex and expensive estate planning tool compared to a Will, and does not eliminate the need for a Will, as there may be some assets that do not get transferred to the trust, leaving the need for a Will.

Trusts are most popular with individuals who own large estates, and may not be necessary for many estates. Therefore, it is important to consult an experienced Estate Planning Attorney before taking the planning plunge on your own.

o What can a Trust do? Basically, a trust collects all of your assets in one place, which simplifies management and investment of your assets making it easier to keep track of everything. Trusts enable a grantor to determine who receives their assets, when and under what conditions. A trust clearly and specifically identifies trustees, beneficiaries, and trust assets.

A trust is an efficient and effective method to avoid probate because it allows assets to pass quickly to beneficiaries.

o What are the duties of a Trustee? As indicated above, a trustee has a fiduciary duty to protect the assets of the trust, and to make sure that the purposes of the trust are carried out. Accordingly, by having possession and control of the trust assets the trustee must preserve the trust assets; control the investment of the trust assets; keep an accounting of the trust assets; keep the assets separate; make accurate distributions and keep beneficiaries fully informed.

The powers of a Trustee vary by State and are clearly spelled out in a Trust Document.

o What property can be transferred to a Trust? Several types of property may be transferred to a Trust, and we can assist you through this process as a different method may be required for each type of property. The following types of property can be effectively transferred to a Trust:
• Personal property
• Automobiles
• Real Estate
• Bank Accounts
• Registered Stocks & Bonds
• Life Insurance
• Retirement Plans

o Are there many different types of Trusts? Yes, there are several different types of trusts available for the needs of every individual. Some of the different types of trusts include:
• Testamentary Trusts
• Living Trusts
• Life Insurance Trusts
• Special Needs Trusts
• Charitable Remainder Trusts
• Qualified Domestic Trusts
• Personal Residence Trusts
• Dynasty Trusts

If you would like more information on a specific type of trust, please contact our office for more information.

o When should a Lawyer’s services be utilized? There are many self-help kits on the internet that allow individuals to prepare and plan their own trusts; however, as the creation of a trust is complex and expensive in nature, we recommend that you obtain the expertise of a licensed professional who has experience in the estate planning process. It is always better to have the assistance of an experienced attorney to guide you through the challenging process.

We are here to assist YOU in this process. We know you do not want to plan for the inevitable, but with the peace of mind that you gain by knowing that the assets you worked your lifetime to accumulate will pass to your beneficiaries quickly and as you intended, should leave no question in your mind that a Trust could possibly be for YOU.

Act now and prepare for the future of your family.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MARCH 16, 2010 FOCUSING ON PLANNING AND DRAFTING A TRUST DOCUMENT!

Administering an Estate - An Overview

2010-03-02T12:12:00.000-08:00

WELCOME BACK to the MVP Estate Planning Blog!

Please ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide some feedback.

This post will focus on administering an estate – what it is (definitions), what to expect, and timeframes.

You may have a will already prepared and filed in the Register of Wills Office for the county in which you are domiciled, but are you aware of what will occur after your death once your will is admitted to probate? Have you shared this information with your family? In this post, I will inform you of the definitions for the most basic terms used in the process as provided by the Register of Wills Office. I will also provide you with a general overview of Administering an Estate in the State of Maryland and inform you of the timeframes associated with Administering an Estate.

DEFINITIONS
Administration of an Estate – the management of a decedent’s assets, which includes the collection of property, payment of expenses and debts, and distribution to the heirs or legatees

Administrative Probate – a proceeding that is initiated by an interested person with the Register of Wills for the appointment of a personal representative and for the probate of a will, or the determination of intestacy of the decedent

Decedent – a deceased person

Estate – the property of a decedent

Information Report – the document that reports all non-probate property (property that passes outside the probate estate). (Non-probate property includes jointly held assets, life estate or remainder interests in a trust or deed, trusts in which the decedent had an interest, payable on death (P.O.D.) assets, and pension and benefit plans including IRAs with named beneficiaries)

Inheritance tax – a tax imposed on the privilege of receiving property from a decedent’s estate

Heir – a family member who inherits from an estate under the laws of intestacy (decedent died without a will)

JudicIal probate – a probate proceeding conducted by the Orphans Court (as opposed to the Register of Wills) when the situation prohibits administrative probate (validity of the will is questioned, will is damaged, more than one qualified person applies for personal representative, etc)

Legatee – a person named in a will to receive

Letter of Administration – a document issued by the Register of Wills that authorizes a personal representative to administer an estate

Limited Order – an order allowing for the search of assets in the decedent’s name alone or the will located in a safe deposit box in the name of the decedent

Lineal heir or legatee – one who is of the direct line of the decedent

Modified Administration – a streamlined version of administrative probate available to the personal representative (in estates where the decedent died on or after 10/1/97). In lieu of an inventory and account, the personal representative is required to file a final report within 10 months from the date of appointment

Net estate – property remaining after the deduction of liens, debts and expenses

Petition to Probate – the document required to initiate a probate proceeding

Probate estate – property owned solely by the decedent or as a tenant in common

Regular estate – the estate procedure for a decedent who owned probate assets with a gross value in excess of $30,000 (or $50,000 if the sole heir or legatee is the surviving spouse)

Small estate – the estate procedure for a decedent who owned probate assets with a gross value of $30,000 or less (or $50,000 or less if the sole heir or legatee is the surviving spouse)

ADMINISTERING A REGULAR ESTATE IN MD
Before administering an Estate, the will of the decedent must be filed with the Register of Wills in the county where the deceased was domiciled at the time of death. Once the Register has the decedent’s will, the process of administering the estate can begin. The Petition for Administration (Form 1112) and Schedule A (Form 1136) are the forms that initiate the opening of an estate. The Petition indicates who is applying to open the estate and Schedule A lists the amount of assets and debts of the estate. The Notice of Appointment (Form 1114) must be filed with the Petition. This Notice is published for three consecutive weeks to put others (other persons, creditors) on notice that a personal representative has been appointed and that a will may be admitted to probate. If a person wishes to avoid notice requirements they may file the Waiver of Notice (Form 1101) to avoid notice requirements. The Nominal Bond (Form 1116) or the Bond of Personal Representative (From 1115) must also be filed. The List of Interested Persons (Form 1104) may also be filed with the petition, but must be filed within 20 days after appointment.

If the person applying to administer the estate is not a Maryland Resident, the Appointment of Resident Agent (Form 1106) will need to be completed and filed. Additionally, if the proper person is not applying to administer the estate, the Consent to Appointment of Personal Representative (Form 1118) is required by all interested persons who have greater priority.

The duties and powers of a personal representative begin when the Letters of Administration are issued by the Register to those named in the will, a spouse, children, creditors or any other person.

The Register of Wills will also provide a schedule of mandatory filing deadlines. For instance, within 20 days the Personal Representative must provide the Register with copies of the Notice of Appointment; within three (3) months, complete the Inventory and Information Report; and within nine (9) months, file an accounting with the Register. The final approval of the final account by the Register automatically closes the estate.

Please refer to the link above for more specific information or contact the Register of Wills Office in your county for details on administering a regular estate.

ADMINISTERING A SMALL ESTATE IN MD
Before administering an Estate, the will of the decedent must be filed with the Register of Wills in the county where the deceased was domiciled at the time of death. Once the Register has the decedent’s will, the process of administering the estate can begin. The Petition for Administration (Form 1103) and Schedule B (Form 1137) are the forms that initiate the opening of an estate. The Petition indicates who is applying to open the estate and Schedule A lists the amount of assets and debts of the estate. The Notice of Appointment (Form 1109) must be filed with the Petition unless the values of the assets in the estate are less than the allowances . This Notice is published once in a newspaper of general circulation to put others (other persons, creditors) on notice that a personal representative has been appointed and that a will may be admitted to probate. If a person wishes to avoid notice requirements they may file the Waiver of Notice (Form 1101) to avoid notice requirements. A Waiver of Bond (Form 1117) may also need to be filed. The List of Interested Persons (Form 1104) may also be filed with the petition, but must be filed within 20 days after appointment.

If the person applying to administer the estate is not a Maryland Resident, the Appointment of Resident Agent (Form 1106) will need to be completed and filed. Additionally, if the proper person is not applying to administer the estate, the Consent to Appointment of Personal Representative of Small Estate (Form 1105) is required by all interested persons who have greater priority.

The duties and powers of a personal representative begin when the Letters of Administration are issued by the Register to those named in the will, a surviving spouse, children, creditors or any other person.

The Register of Wills will also provide a schedule of mandatory filing deadlines. You must make a reasonably diligent effort to ascertain the names and addresses of the decedent’s creditors and mail or deliver notice to those creditors and within three (3) months, complete an Information Report.

Please refer to the link above for more specific information or contact the Register of Wills Office in your county for details on administering a small estate.

**Administering an Estate may seem like a quick and easy process and in most cases, it is; however, there can be claims raised against an estate which will in effect prolong the process. Typically, many estates can be administered within a few months up to a year, but there are some that can take several years to administer depending upon a number of factors.

For more information on administering an estate, please contact the Register of Wills Office located in your county or a licensed Probate and Trust Administration Attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MARCH 9, 2010 FOCUSING ON TRUSTS – THE BASICS.

Wills - Initial Client Meeting

2010-02-23T08:28:00.000-08:00

WELCOME BACK to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

This entry will focus on the initial client meeting – what to expect, what to bring, costs, and timeframes.

Although the Last Will & Testament will be unique to your individualized situation, the initial client meeting and the preparation stages are basically the same for all applicants.

Before determining which estate planning tools would be best suitable for your particular situation, we will need to schedule an initial client meeting to determine and identify (1) your goals; (2) your family situation; (3) your property (real and personal) and (3) your finances.

At the initial client meeting, we will go over very general information, and any specific questions that you may have. You will not need to bring anything with you to this meeting. Also, if applicable at that time I will discuss with you the dual representation agreement, which explains how I, as the Attorney, can represent both you and your spouse with the preparation of your Estate Planning Documents, and how the information that either of you share with me, will be communicated to and shared with the other. We will also discuss the legal agreement and any questions that you may have. Nothing will need to be signed at this time; however, if you do choose to retain our office for your Estate Planning, the dual representation agreement and legal agreement will need to be signed and returned to our office to proceed.

Additionally, at the end of our initial client meeting, I will provide you with a lengthy questionnaire that asks for specific information about your life including your property (real and personal), family, and finances. Please be as specific as possible, in the event that a court does get a hold of your will, we do not want any inconsistencies or unclear statements. Once you have completed the questionnaire, we will schedule another meeting where you will bring your financial documents, deed(s), etc., to our office so that we can review them and plan for the preparation of your Last Will & Testament. Generally, it takes about two (2) weeks time from the time we receive your completed questionnaire and background documents until your will is ready for your first review. We will have another client meeting to review your will, so that we can thoroughly review each provision and make any changes if needed. At the close of that meeting we will schedule for the final drafting and signing, which is when you must bring two witnesses with you to our office to sign your Last Will & Testament.

Our legal fees range from $650.00 to $1200.00 depending upon the complexity of the will provisions. (Wills can be simple containing only disposition of property provisions and a provision naming a Personal Representative, but may include complex provisions regarding the Appointment of a Guardian for minor children, the establishment of a trust, the creation of a Power of Attorney, etc., depending upon your particular situation,) The legal fee is determined based upon the complexity of the provisions and the number of provisions.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an Estate Planning Attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MARCH 2, 2010 FOCUSING ON ADMINISTERING AN ESTATE.

Introduction - Wills

2010-02-16T08:50:00.000-08:00

Welcome to the MVP Estate Planning Blog.

We thought that with our first entry we would start out with the basics. We will be blogging about "Wills" for the next two weeks. Our postings will contain the most basic information about will planning and drafting and administering an estate. Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

This topic is not the easiest to address with a new client, but it is something absolutely necessary to discuss and plan for.

In the State of Maryland, if you die without a will, your property will be dispursed as follows:

IF THE DECEDENT IS SURVIVED BY:

Spouse and minor children of the decedent- spouse receives one-half, children share remaining one-half

Spouse and children (all adult) of the decedent-spouse receives $15,000 plus one-half of remaining estate-children divide balance (the interest of a predeceased child passes to issue of that child)

Children only of the decedent-children (does not include step-children) divide entire estate (the interest of a predeceased child passes to issue of that child)

Spouse and parents of the decedent- spouse receives $15,000 plus one-half of remaining estate-both parents divide balance or surviving parent takes balance

Spouse of the decedent without other heirs listed above-spouse receives entire estate

Parents of the decedent without other heirs listed above-both parents divide entire estate or surviving parent takes all

Brothers/sisters of the decedent without heirs listed above-brothers and sisters divide estate equally (share of deceased sibling goes to their issue-nieces and nephews of the decedent)

Grandparents without other heirs listed above-grandparents divide entire estate or, if deceased, to their issue (see applicable law for details)

Great-grandparent without other heirs listed above-great-grandparents divide entire estate or, if deceased, to their issue (see applicable law for details)

Step-children-if there are no heirs listed above

No living heirs or step-children-If decedent was a recipient of long-term care benefits under the Maryland Medical Assistance Program at time of death, net estate is paid to Department of Health and Mental Hygiene. Otherwise, the net estate is paid to the Board of Education.

For those that have questions surrounding the "Last Will & Testament" please take the time to review the "Question & Answer" discussion we have created below.

What is a Will?
A will is a legal document which determines what happens to your property after you pass. A will deals with who receives your property and in what amounts.

What can a Will do?
Besides distributing property, a will may name a guardian for any minor children. It may also name a personal representative/executor to carry out the terms of the will. If you have pets, you can even name a guardian and provide arrangements for their care. Additionally, with a will you can create a trust and designate a trustee to handle the estate.

What a Will can’t do?
A will cannot cover property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust. A will cannot cover proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan. However, you may on your own change the name of the beneficiary on the forms provided by the insurance agency, financial institution, etc. A will cannot cover stocks and bonds held in beneficiary forms. Additionally, a will cannot cover money in a payable-on-death bank account, as a simple form can be obtained from your bank to change the beneficiary listed.

Who should make a Will?
Everyone. Especially anyone who owns property, whether personal or real should make a will. There is absolutely no need to have a large estate to plan and prepare a will. Individuals with cash, vehicles, jewelry, furniture (personal property) should make a will to distribute their assets. Additionally, individuals owning land and/or houses (real property) should make a will.

If married, each spouse should make a will distributing their assets. Widows and single parents should also make a will to dispose of their most valuable possessions.

When should a lawyer’s services be utilized?
There are many self-help kits on the internet that allow individuals to prepare and plan their own wills; however, certain situations may require the expertise of a licensed professional who has experience in the estate planning process. It is always better to have the assistance of an experienced attorney to guide you through the challenging process.

What happens if you die without a Will?
If you die without a will, you will have died intestate; meaning your property and belongings will be distributed through the strict intestacy laws of the State. In other words, without a will, your possessions will be dispersed to your closest relatives, and if you have no living heirs, to the State. Therefore, in order to protect your family and your belongings, it is extremely important that everyone makes a valid will; otherwise the State may get to determine how your property is distributed.

Can you make changes to your Will?
You may make changes to your will whenever desired and should when your current situation changes. For instance, if you move to a new state, get married or divorced, have a baby, have step children or adopt, and if you acquire or dispose of substantial assets, you should change your will to reflect your current situation.

You may make changes by adding a codicil to your existing will or by creating an entirely new will.

Can you revoke your own Will?
Yes, you may revoke your own will. You may revoke by: including a provision in a subsequent will which revokes any prior will, or by burning, canceling, tearing or obliterating your will and any copies of it.

What are the requirements to make a Valid Will?
To make a will anywhere, the maker must be:
a)At least 18 years old;
b)Of sound mind;
c)Free from duress, coercion; and
d)Able to completely understand the property they own, its
value, and who they wish to leave it to upon their death.

What are the specific requirements to make a Valid Will in Maryland?
To create a valid will in Maryland, the will must be:
1)In writing;
2)Signed by the testator in the presence of two witnesses; and
3)Attested and signed by the two witnesses
* A valid will does not need to be notarized in MD

We know that NO ONE wants to plan for the inevitable; however, having the proper estate planning protections in place will leave you with less worry, allowing you to spend quality time with your family and friends without the constant “what if” thoughts running through your mind.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, FEBRUARY 23, 2010