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Wednesday, November 23, 2011

Next Estate Planning Q&A Forum - Friday, January 13, 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, January 13th, 2012. Act now and submit your questions!

Monday, November 7, 2011

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

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's the difference between an inheritance tax and an estate tax?

Answer #1
The inheritance tax is imposed on the clear value of property that passes from a decedent to some beneficiaries. The tax is levied on property that passes under a will, the intestate laws of succession, and property that passes under a trust, deed, joint ownership, or otherwise. The tax is collected by the Register of Wills located in the county where the decedent either lived or owned property. Property passing to a child or other lineal descendant, spouse of a child or other lineal descendant, spouse, parent, grandparent, stepchild or stepparent, siblings or a corporation having only certain of these persons as stockholders is exempt from taxation, all other individuals are taxed at a rate of 10%.
The Maryland estate tax is a state tax imposed on the transfer of property in a decedent's estate. Accordingly, an estate tax return is required for every estate whose federal gross estate equals or exceeds $1,000,000. Therefore, if your federal gross estate does not equal or exceed $1M, you do not have to worry about the Maryland estate tax. The tax rate is limited to 16% of the amount that the estate value exceeds $1,000,000.


Question #2 – Trusts
What does it mean to have a living trust and why is it important?

Answer #2
A living trust, also called an inter vivos trust, is a trust which is effective during the lifetime of the person who created the trust. The person who created the living trust, the creator (grantor), may change the terms of the living trust during his/her lifetime. A living trust typically contains instructions for managing trust assets during the creator's lifetime as well as instructions for distributing trust assets upon the creator's/grantor’s incapacity or death, thereby eliminating the need for conservatorship or probate proceedings.


Question #3 – Wills
If my children are under 18, still legal minors, can they inherit anything that I leave them?

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.


Question #4 – Advance Directive/Living Will
Does power of attorney medical care mean that only my attorney can make decisions regarding my health?

Answer #4
The term ‘power of attorney’ is a term of art; it does not mean that your attorney may make decisions regarding your health. You may in fact appoint your attorney to serve as your health care agent; however, anyone whom you trust may serve as your health care power of attorney and/or financial power of attorney.

A power of attorney is a document that allows you to appoint a person or organization to handle your affairs while you're unavailable or unable to do so. The person or organization you appoint is referred to as an "Attorney-in-Fact" or "Agent.


Question #5 – Trusts
If I create and irrevocable trust and later decided that I need to amend it, is there really nothing that can be done to change it?

Answer #5
An irrevocable trust is a trust that cannot be modified or terminated without the permission of the beneficiary. The creator/grantor, having transferred assets into the trust, effectively removes all of his or her rights of ownership to the assets and the trust. This is the opposite of a "revocable trust", which allows the creator/grantor to modify the trust.


Question #6 –Wills
What is probate?

Answer #6
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 #7 – Wills
What property is included in an individual's probate estate?

Answer #7
An individual’s probate estate includes only property subject to estate administration after the death of the individual. Examples of probate property are houses, cars, furniture, stocks, bonds, and bank accounts titled in an individual’s name. Examples of property not typically included an individual’s probate estate are assets which pass pursuant to a beneficiary designation form such as life insurance policies, annuities, and certain retirement accounts, or assets held jointly with others with rights of survivorship, or assets titled in the name of the deceased individual's trust.


Question #8 – General
What is a conservatorship?

Answer #8
A conservatorship is a court procedure where a Judge declares an individual unable to take care of his/her own legal matters and appoints another individual, known as a conservator, to do so.


Question #9 – Trusts
In what ways can I protect my child who has special needs in case of my death? Is there anything special that I need to do?

Answer #9
You could create a Special Needs Trust. A special needs trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property which is intended to be held for their benefit. In addition to personal planning reasons for such a trust (the person may lack the mental capacity to handle their financial affairs) there may be fiscal advantages to the use of a trust. Such trusts may also avoid beneficiaries losing access to essential government benefits. A common feature of trusts is that they may be run either by family members (a private trust) or by trustees appointed by the court. Especially where a trust is to be established for a disabled child or young person, great care is generally taken in the choice of appropriate trustees to manage the trust assets and to deal with future replacement appointments.


Question #10 – General
What is estate tax and how does it affect me?

Answer #10
The Maryland estate tax is a state tax imposed on the transfer of property in a decedent's estate. Accordingly, an estate tax return is required for every estate whose federal gross estate equals or exceeds $1,000,000. Therefore, if your federal gross estate does not equal or exceed $1M, you do not have to worry about the Maryland estate tax.



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

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

Monday, October 31, 2011

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

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!

Monday, October 24, 2011

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

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.

Monday, October 17, 2011

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

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!

Monday, October 10, 2011

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

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.

Monday, October 3, 2011

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

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!

Monday, September 26, 2011

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

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
My nephew executed an advance directive directing his mother to serve as his agent. She has since taken advantage of this POA, how can my nephew revoke this POA, can he?

Answer #1
Your nephew may revoke the POA. If the POA was filed with the Clerk of Court, then he will need to draft and sign a statement revoking his POA, have it signed by two witnesses and notarized and filed with the court. He should also serve this revocation letter to his mother as notice of revocation of her power to act as Agent, and he should provide a copy of this revocation letter to his bank/financial institutions, so that no further unauthorized actions are taken.


Question #2 - Wills
Do I really need a will? I have less than 1M in assets, no children, been married but now divorced; but I own two homes and two rental properties?

Answer #2
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.


Question #3 – Prenuptial Agreement
I own my own business, never been married, no children, and just got engaged. I am considering a prenuptial Agreement, any advice?

Answer #3
You should 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.


Question #4 – Wills
Can I just use a self-help kit to draft my will or should I hire legal counsel to take care of this?

Answer #4
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. There are certain formalities that must occur when signing the will and without an attorney or real-life guidance, these formalities may not occur which can invalidate the will.


Question #5 - Wills
Do you normally include an alternate Personal Representative in your Last Wills?

Answer #5
Yes, it is our standard policy to include a provision naming a personal representative and in the event that they cannot so act or are precluded from acting for a specific reason, the provision allows you to appoint a second/alternate Personal Representative.


Question #6 – Power of Attorney
Why would I prepare a Power of Attorney?

Answer #6
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


Question #7 – Wills
I heard that if I do not draft a will, my property/belongings could go to the state. Is this true? How is that possible?

Answer #7
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. (Please check out our website to view the intestacy laws for the State of Maryland). 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 #8 – Advance Directive
Why would I prepare a Living Will/Advance Directive/Health Care POA?

Answer #8
You should prepare an Advance Directive because 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.


Question #9 – Advance Directive
If I have changed my mind about receiving life support, can I change my Advance Directive?

Answer #9
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 #10 – Wills
My husband and I have not updated our wills in twenty years; our children now have their own children. What is your recommendation on updating the will(s)?

Answer #10
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. Depending upon the changes that have occurred in the last twenty years, you may want to consider creating an entire new 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 7th, 2011!

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

Tuesday, September 20, 2011

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

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!

Friday, September 9, 2011

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

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.

Tuesday, September 6, 2011

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

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!

Friday, August 26, 2011

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

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.

Monday, August 22, 2011

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

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!

Friday, August 12, 2011

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

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.

Thursday, August 4, 2011

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

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!

Wednesday, April 13, 2011

To Prenup or Not to Prenup?

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.