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, May 4th, 2012. Act now and submit your questions!
Tuesday, April 3, 2012
Friday, March 23, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Friday, March 23, 2012
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. Therefore, your communication with us through this forum will not be considered as privileged or confidential.
Question #1 – Wills
What does it mean to die “intestate”?
Answer #1
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.
Question #2 – Advance Directives
What is a health care proxy? What types of people should look into having one?
Answer #2
A health care proxy is a person who you appoint to make decisions regarding your health when you are unable to do so. In Maryland, you may appoint a person to serve as your health care agent (‘proxy’) in the Advance Directive.
Everyone should have an Advance Directive, as you never know when you will be unable to communicate your wishes concerning your healthcare.
Question #3 – Wills
How is the commission for the executor of the will determined?
Answer #3
Executor's fees are usually strictly controlled by statute.
Question #4 – Trusts
What is an inter vivos trust?
Answer #4
An inter vivos trust is a trust that is created during the lifetime of the creator, as compared to a testamentary trust which established on one’s death.
Question #5 – Probate
What is the probate?
Answer #5
In short, Probate involves paperwork and court appearances by lawyers once an individual dies. Probate is the legal process of overseeing the estate of a deceased person by resolving all claims and distributing the deceased person's property in accordance with the valid will. The probate court decides the validity of a testator’s will.
Question #6 – Wills
Do you owe a commission to anyone that you appoint to do something in you will?
Answer #6
Generally, only the Executor of the Will is entitled to a commission for carrying out the duties attributed to him/her as Executor of the Will. Obviously, Attorneys and other professionals who are sought after by the Executor to assist with probate, etc., are entitled to be paid for their services.
Question #7 – Prenuptial Agreements
My boyfriend wants to have a prenuptial drafted for us. Should I seek independent counsel?
Answer #7
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 #8 – General
Are there other methods of leaving my property to someone outside of wills?
Answer #8
Yes, through trusts, payable on death accounts, etc. Although it is recommended to still have a Will drafted as those other instruments may not cover everything that you own.
Question #9 – General
What is a GST tax and who does it affect?
Answer #9
The U.S. Generation-skipping transfer (GST) tax imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren. The generation-skipping tax will be imposed only if the transfer avoids incurring a gift or estate tax at each generation level.
Question #10 – General
What are the benefits of having accounts set up as “payable on death” for my beneficiaries?
Answer #10
The beneficiaries of those assets receive their share of the assets immediately, as they do not have to undergo the probate process.
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, April 6th , 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – Wills
What does it mean to die “intestate”?
Answer #1
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.
Question #2 – Advance Directives
What is a health care proxy? What types of people should look into having one?
Answer #2
A health care proxy is a person who you appoint to make decisions regarding your health when you are unable to do so. In Maryland, you may appoint a person to serve as your health care agent (‘proxy’) in the Advance Directive.
Everyone should have an Advance Directive, as you never know when you will be unable to communicate your wishes concerning your healthcare.
Question #3 – Wills
How is the commission for the executor of the will determined?
Answer #3
Executor's fees are usually strictly controlled by statute.
Question #4 – Trusts
What is an inter vivos trust?
Answer #4
An inter vivos trust is a trust that is created during the lifetime of the creator, as compared to a testamentary trust which established on one’s death.
Question #5 – Probate
What is the probate?
Answer #5
In short, Probate involves paperwork and court appearances by lawyers once an individual dies. Probate is the legal process of overseeing the estate of a deceased person by resolving all claims and distributing the deceased person's property in accordance with the valid will. The probate court decides the validity of a testator’s will.
Question #6 – Wills
Do you owe a commission to anyone that you appoint to do something in you will?
Answer #6
Generally, only the Executor of the Will is entitled to a commission for carrying out the duties attributed to him/her as Executor of the Will. Obviously, Attorneys and other professionals who are sought after by the Executor to assist with probate, etc., are entitled to be paid for their services.
Question #7 – Prenuptial Agreements
My boyfriend wants to have a prenuptial drafted for us. Should I seek independent counsel?
Answer #7
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 #8 – General
Are there other methods of leaving my property to someone outside of wills?
Answer #8
Yes, through trusts, payable on death accounts, etc. Although it is recommended to still have a Will drafted as those other instruments may not cover everything that you own.
Question #9 – General
What is a GST tax and who does it affect?
Answer #9
The U.S. Generation-skipping transfer (GST) tax imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren. The generation-skipping tax will be imposed only if the transfer avoids incurring a gift or estate tax at each generation level.
Question #10 – General
What are the benefits of having accounts set up as “payable on death” for my beneficiaries?
Answer #10
The beneficiaries of those assets receive their share of the assets immediately, as they do not have to undergo the probate process.
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, April 6th , 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Monday, March 19, 2012
Next Estate Planning Q&A Forum - Friday, March 23rd, 2012
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, March 23rd, 2012. Act now and submit your questions!
Our next “Q & A Forum” will take place Friday, March 23rd, 2012. Act now and submit your questions!
Tuesday, March 13, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Friday, March 9, 2012
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
In regards to probate, what is the difference between an administrative probate and a judicial probate?
Answer #1
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
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
Question #2 – Wills
Does the size of my estate affect the probate?
Answer #2
Yes, your estate will either be classified as a regular estate or a small estate.
Question #3 – Wills
If I want my minor child to inherit something, even if they will still be a minor at the time of inheritance, how do I go about doing that?
Answer #3
The Maryland Uniform Transfers to Minors Act (MUTTMA) allows the donor of the gift to transfer title to a custodian who will manage and invest the property until the minor reaches the age of 21. You may include a provision in your will or you may create a Trust to preserve these attests for your minor children until they reach the age of the majority.
Question #4 – Power of Attorney
Does a third party have to acknowledge a power of attorney?
Answer #4
If the new Statutory Power of Attorney is presented to a third party who does not want to acknowledge the executed POA, the agent may initiate legal proceedings against the third party in order for them to acknowledge the POA. The new Statutory POA provides support from the Courts, as this is a statutory legal document drafted in order to create uniformity when presented to third parties.
Question #5 – Wills
If I do not have a will, but I have immediate family, how are my estate and assets divided?
Answer #5
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.
Question #6 – Power of Attorney
Can I revoke my POA?
Answer #6
A POA can be revoked at any time, and the POA should clearly provide in its language that the Principal may revoke it.
Question #7 – Wills
What a Will can’t do?
Answer #7
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 #8 – Trusts
I have been designated as a trustee of my grandfather’s Trust. What are my official duties as a Trustee?
Answer #8
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 should be clearly spelled out in the Trust Document.
Question #9 –Wills
What is intestate succession?
Answer #9
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. (Please see answer to question #5 above).
Question #10 –Wills
Is there anything I can do to avoid probate?
Answer #10
Drafting trusts to protect your assets, and re-titling property. Before making any attempts to avoid probate in its entirety, please speak with an Experience Attorney regarding whether or not that is something that you should do. Sometimes, depending upon the circumstances of the situation, Probate is not a complicated process.
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, March 23rd, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – Wills
In regards to probate, what is the difference between an administrative probate and a judicial probate?
Answer #1
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
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
Question #2 – Wills
Does the size of my estate affect the probate?
Answer #2
Yes, your estate will either be classified as a regular estate or a small estate.
Question #3 – Wills
If I want my minor child to inherit something, even if they will still be a minor at the time of inheritance, how do I go about doing that?
Answer #3
The Maryland Uniform Transfers to Minors Act (MUTTMA) allows the donor of the gift to transfer title to a custodian who will manage and invest the property until the minor reaches the age of 21. You may include a provision in your will or you may create a Trust to preserve these attests for your minor children until they reach the age of the majority.
Question #4 – Power of Attorney
Does a third party have to acknowledge a power of attorney?
Answer #4
If the new Statutory Power of Attorney is presented to a third party who does not want to acknowledge the executed POA, the agent may initiate legal proceedings against the third party in order for them to acknowledge the POA. The new Statutory POA provides support from the Courts, as this is a statutory legal document drafted in order to create uniformity when presented to third parties.
Question #5 – Wills
If I do not have a will, but I have immediate family, how are my estate and assets divided?
Answer #5
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.
Question #6 – Power of Attorney
Can I revoke my POA?
Answer #6
A POA can be revoked at any time, and the POA should clearly provide in its language that the Principal may revoke it.
Question #7 – Wills
What a Will can’t do?
Answer #7
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 #8 – Trusts
I have been designated as a trustee of my grandfather’s Trust. What are my official duties as a Trustee?
Answer #8
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 should be clearly spelled out in the Trust Document.
Question #9 –Wills
What is intestate succession?
Answer #9
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. (Please see answer to question #5 above).
Question #10 –Wills
Is there anything I can do to avoid probate?
Answer #10
Drafting trusts to protect your assets, and re-titling property. Before making any attempts to avoid probate in its entirety, please speak with an Experience Attorney regarding whether or not that is something that you should do. Sometimes, depending upon the circumstances of the situation, Probate is not a complicated process.
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, March 23rd, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Monday, March 5, 2012
Next Estate Planning Q&A Forum - Friday, March 9th, 2012
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, March 9th, 2012. Act now and submit your questions!
Our next “Q & A Forum” will take place Friday, March 9th, 2012. Act now and submit your questions!
Monday, February 27, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Monday, February 27, 2012
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
Is it possible to leave my company or business to someone in my will?
Answer #1
Yes. You should have a provision in your will for your business and should also prepare the necessary Business Succession documents for transfer of your company/business to someone else.
Question #2 – Wills
When do changes to your will become inadmissible?
Answer #2
When a doctor has declared you incapacitated/incompetent; when you no longer understand the nature of your property; when you are no longer of sound mind, etc.
Question #3 – General
Who makes decisions on your behalf if you become incapacitated?
Answer #3
If you have made the necessary preparations prior to your incapacitation, whomever you listed to make those decisions. If you did not prepare for your incapacitation, then your family/friend may have to petition the Court to ultimately make decisions on your behalf.
Question #4 – POA
What is a financial power of attorney? Is it necessary to have one?
Answer #4
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. An executed POA allows your agent to make decisions on your behalf when you are unable to do so on your own.
Question #5 – General
How is joint tenancy different from tenancy by the entirety?
Answer #5
Joint tenancy is a type of ownership of real or personal property held by two or more persons in which each owns an undivided interest in the whole.
Tenancy by the entirety is a type of ownership of real property held by a Husband and Wife where each owns the undivided whole of the property, with the Right of Survivorship, so that upon the death of one, the survivor is entitled to the decedent's share.
Question #6 – General
How do you determine if an estate is taxable?
Answer #6
If your death occurs during a year when the federal estate tax is in effect, then whether your estate will be liable for federal estate taxes will depend on the value of your gross estate, the amount of debt you owe at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take.
Question #7 – General
What is the tax rate for taxable estates?
Answer #7
The federal estate and gift tax rate for deaths in 2011 and 2012 is 35%.
Question #8 – Trusts
Does a living trust ever become public, like a will does when it goes to probate court?
Answer #8
No, a trust is not a public document.
Question #9 – Pour Over Will
If I have a living trust, why would I still need to create a will?
Answer #9
A trust document cannot necessarily cover all of your belongings. Accordingly, a pour over will would be recommended to handle all outstanding assets not covered in the trust.
Question #10 – General
Do all banks have the options to have an account Transfer on Death or make an account Payable on Death?
Answer #10
Yes, all banks should have the options.
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, March 9th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – Wills
Is it possible to leave my company or business to someone in my will?
Answer #1
Yes. You should have a provision in your will for your business and should also prepare the necessary Business Succession documents for transfer of your company/business to someone else.
Question #2 – Wills
When do changes to your will become inadmissible?
Answer #2
When a doctor has declared you incapacitated/incompetent; when you no longer understand the nature of your property; when you are no longer of sound mind, etc.
Question #3 – General
Who makes decisions on your behalf if you become incapacitated?
Answer #3
If you have made the necessary preparations prior to your incapacitation, whomever you listed to make those decisions. If you did not prepare for your incapacitation, then your family/friend may have to petition the Court to ultimately make decisions on your behalf.
Question #4 – POA
What is a financial power of attorney? Is it necessary to have one?
Answer #4
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. An executed POA allows your agent to make decisions on your behalf when you are unable to do so on your own.
Question #5 – General
How is joint tenancy different from tenancy by the entirety?
Answer #5
Joint tenancy is a type of ownership of real or personal property held by two or more persons in which each owns an undivided interest in the whole.
Tenancy by the entirety is a type of ownership of real property held by a Husband and Wife where each owns the undivided whole of the property, with the Right of Survivorship, so that upon the death of one, the survivor is entitled to the decedent's share.
Question #6 – General
How do you determine if an estate is taxable?
Answer #6
If your death occurs during a year when the federal estate tax is in effect, then whether your estate will be liable for federal estate taxes will depend on the value of your gross estate, the amount of debt you owe at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take.
Question #7 – General
What is the tax rate for taxable estates?
Answer #7
The federal estate and gift tax rate for deaths in 2011 and 2012 is 35%.
Question #8 – Trusts
Does a living trust ever become public, like a will does when it goes to probate court?
Answer #8
No, a trust is not a public document.
Question #9 – Pour Over Will
If I have a living trust, why would I still need to create a will?
Answer #9
A trust document cannot necessarily cover all of your belongings. Accordingly, a pour over will would be recommended to handle all outstanding assets not covered in the trust.
Question #10 – General
Do all banks have the options to have an account Transfer on Death or make an account Payable on Death?
Answer #10
Yes, all banks should have the options.
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, March 9th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Monday, February 13, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Monday, February 13, 2012
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
Can I name anyone to become the beneficiaries of my retirement’s accounts?
Answer #1
Generally, yes; however, it does depend upon the type of Retirement account set up, as some restrict beneficiaries to spouses and children. You should carefully consider whom you are listing as a beneficiary, particularly their age and their ability to manage the assets.
Question #2 – General
What are the benefits of having an accounts set up with a “pay on death” for my beneficiaries?
Answer #2
The beneficiaries of those assets receive their share of the assets immediately, as they do not have to undergo the probate process.
Question #3 – General
What type of assets can be held in joint tenancy?
Answer #3
Joint tenancy is a type of ownership in which two or more people share an interest in personal property or real estate.
Question #4 –Wills
Can my 16 year old child be a beneficiary in my will?
Answer #4
Your 16 year old child may be a beneficiary in your will; however, you should have a guardian provision included in your will as well to hold the assets for your child if you die while your 16 year old is still a child. The guardian will hold the assets of your child until your child becomes emancipated under the law.
Question #5 – Wills
If my minor child cannot legally be a beneficiary and I would like to leave them something in my will, who has control over the items left to them until they are legally able to inherit them?
Answer #5
Please see answer to Question #4.
Question #6 – Wills
If I am terminally ill, at what point do admissions and changes to my will become invalid?
Answer #6
It depends. If someone is terminally ill, that does not declare them mentally incompetent so that they cannot make changes to their will. As long as you are over the age of 18, understand the provisions of the will, and understand the disposition of your property in your will, and have not been declared mentally incompetent, you can make changes to your will up until your death.
Question #7 – Advance Directive
What is the purpose of an advance directive?
Answer #7
The purpose of an Advance Directive is to have your health care wishes carried out in your best interest if you are unable to dictate how you want to be treated. The advance directive allows you to make decisions regarding types of treatments and also allows you to appoint a Health Care Agent to carry out your wishes in the event you are unable to do so.
Question #8 – Advance Directive
What is a “durable power of attorney for health care”? Does this role actually have to be fulfilled by my attorney?
Answer #8
In Maryland, we have one document entitled an Advance Directive which combines the medical directive and durable power of attorney for health care. You are allowed to designate a particular person as your power of attorney or ‘Health Care Agent’. Once designated as your health care agent, that person is able to carry out your wishes with regards to health care treatment in the event you are unable to do so.
Question #9 – Advance Directive
If I create an advance directive, will it still be valid if I move out of state?
Answer #9
It depends upon the particular requirements of another state.
Question #10 – Wills
Do I have to have a legal will?
Answer #10
You do not have to have a legal will. Disposing of property both personal and real is entirely optional. If you do not wish to create a will, any belongings both personal and real will be disposed of in accordance with the Intestacy Laws of the state where you lived when you died.
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, February 24th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – General
Can I name anyone to become the beneficiaries of my retirement’s accounts?
Answer #1
Generally, yes; however, it does depend upon the type of Retirement account set up, as some restrict beneficiaries to spouses and children. You should carefully consider whom you are listing as a beneficiary, particularly their age and their ability to manage the assets.
Question #2 – General
What are the benefits of having an accounts set up with a “pay on death” for my beneficiaries?
Answer #2
The beneficiaries of those assets receive their share of the assets immediately, as they do not have to undergo the probate process.
Question #3 – General
What type of assets can be held in joint tenancy?
Answer #3
Joint tenancy is a type of ownership in which two or more people share an interest in personal property or real estate.
Question #4 –Wills
Can my 16 year old child be a beneficiary in my will?
Answer #4
Your 16 year old child may be a beneficiary in your will; however, you should have a guardian provision included in your will as well to hold the assets for your child if you die while your 16 year old is still a child. The guardian will hold the assets of your child until your child becomes emancipated under the law.
Question #5 – Wills
If my minor child cannot legally be a beneficiary and I would like to leave them something in my will, who has control over the items left to them until they are legally able to inherit them?
Answer #5
Please see answer to Question #4.
Question #6 – Wills
If I am terminally ill, at what point do admissions and changes to my will become invalid?
Answer #6
It depends. If someone is terminally ill, that does not declare them mentally incompetent so that they cannot make changes to their will. As long as you are over the age of 18, understand the provisions of the will, and understand the disposition of your property in your will, and have not been declared mentally incompetent, you can make changes to your will up until your death.
Question #7 – Advance Directive
What is the purpose of an advance directive?
Answer #7
The purpose of an Advance Directive is to have your health care wishes carried out in your best interest if you are unable to dictate how you want to be treated. The advance directive allows you to make decisions regarding types of treatments and also allows you to appoint a Health Care Agent to carry out your wishes in the event you are unable to do so.
Question #8 – Advance Directive
What is a “durable power of attorney for health care”? Does this role actually have to be fulfilled by my attorney?
Answer #8
In Maryland, we have one document entitled an Advance Directive which combines the medical directive and durable power of attorney for health care. You are allowed to designate a particular person as your power of attorney or ‘Health Care Agent’. Once designated as your health care agent, that person is able to carry out your wishes with regards to health care treatment in the event you are unable to do so.
Question #9 – Advance Directive
If I create an advance directive, will it still be valid if I move out of state?
Answer #9
It depends upon the particular requirements of another state.
Question #10 – Wills
Do I have to have a legal will?
Answer #10
You do not have to have a legal will. Disposing of property both personal and real is entirely optional. If you do not wish to create a will, any belongings both personal and real will be disposed of in accordance with the Intestacy Laws of the state where you lived when you died.
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, February 24th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
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