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.
Friday, January 27, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Friday, January 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 – Probate
What is the probate process?
Answer #1
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 #2 – Probate
Is life insurance subject to probate?
Answer #2
No, unless you name your estate as the beneficiary of the policy.
Question #3 – Wills
What is the youngest age at which I can set up a will?
Answer #3
In order to draft a will, the individual must be:
a)At least 18 years old;
b)Of sound mind;
c)Free from duress, coercion; and
d)Able to completely understand the property they own, its value, and who they wish to leave it to upon their death.
Question #4 –Advance Directive
Who should I give copies of my Advance Directive to?
Answer #4
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., 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 #5 – Probate
If I do not have any family, who closes my estate?
Answer #5
Your family does not have to close your estate. You may designate a close friend/colleague or someone that you trust to close your estate.
Question #6 – Probate
What is non-probate property?
Answer #6
Non-probate is property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust, proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan, stocks and bonds held in beneficiary forms and money in a payable-on-death bank account.
Question #7 – Wills
What is the difference between a Grantor and a Testator?
Answer #7
A grantor is the title used for the individual who sets up a trust. A testator is the title used for the individual that has written and executed a Last Will and Testament.
Question #8 –Trusts
What is a trust?
Answer #8
A trust is a legal agreement that allows you (the trustor) to transfer property and assets for the benefit of someone else (the beneficiaries). Beneficiaries can be individuals, businesses, or charitable organizations. You place your assets under control of a trustee, an individual or organization that manages and distributes the assets as set out in a trust document specifying your wishes.
Question #9 – Trusts
I am interested in drafting a trust; however, I heard they are relatively complex?
Answer #9
There are roughly eight steps in the process of developing a valid trust document:
1. Decide what type of trust best suits your particular situation. You may already know what you are looking for, but if not, an experience lawyer will be able to help you determine which type of trust would satisfy your goals.
2. Decide what items to leave in the trust. Several types of property may be transferred to a Trust. The following types of property can be effectively transferred to a Trust:
a. Personal property
b. Automobiles
c. Real Estate (Real property)
d. Bank Accounts
e. Registered Stocks & Bonds
f. Life Insurance
g. Retirement Plans
3. Decide who will inherit your trust property.
4. Choose someone to be your successor trustee.
5. Choose someone to manage children's property (if applicable to your situation).
6. Prepare the trust and sign it in front of a notary.
7. Transfer title of property to yourself as trustee.
8. Store your trust document safely.
Question #10 – Wills
Can you cancel your own Will?
Answer #10
Yes, you may revoke your own will. You may revoke by: including a provision in a subsequent will which revokes any prior will, or by burning, canceling, tearing or obliterating your will and any copies of it.
MVP Law Group would like to thank everyone who contributed a question or comment.
Our next “Estate Planning Q & A Forum” is scheduled for Monday, February 13th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – Probate
What is the probate process?
Answer #1
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 #2 – Probate
Is life insurance subject to probate?
Answer #2
No, unless you name your estate as the beneficiary of the policy.
Question #3 – Wills
What is the youngest age at which I can set up a will?
Answer #3
In order to draft a will, the individual must be:
a)At least 18 years old;
b)Of sound mind;
c)Free from duress, coercion; and
d)Able to completely understand the property they own, its value, and who they wish to leave it to upon their death.
Question #4 –Advance Directive
Who should I give copies of my Advance Directive to?
Answer #4
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., 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 #5 – Probate
If I do not have any family, who closes my estate?
Answer #5
Your family does not have to close your estate. You may designate a close friend/colleague or someone that you trust to close your estate.
Question #6 – Probate
What is non-probate property?
Answer #6
Non-probate is property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust, proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan, stocks and bonds held in beneficiary forms and money in a payable-on-death bank account.
Question #7 – Wills
What is the difference between a Grantor and a Testator?
Answer #7
A grantor is the title used for the individual who sets up a trust. A testator is the title used for the individual that has written and executed a Last Will and Testament.
Question #8 –Trusts
What is a trust?
Answer #8
A trust is a legal agreement that allows you (the trustor) to transfer property and assets for the benefit of someone else (the beneficiaries). Beneficiaries can be individuals, businesses, or charitable organizations. You place your assets under control of a trustee, an individual or organization that manages and distributes the assets as set out in a trust document specifying your wishes.
Question #9 – Trusts
I am interested in drafting a trust; however, I heard they are relatively complex?
Answer #9
There are roughly eight steps in the process of developing a valid trust document:
1. Decide what type of trust best suits your particular situation. You may already know what you are looking for, but if not, an experience lawyer will be able to help you determine which type of trust would satisfy your goals.
2. Decide what items to leave in the trust. Several types of property may be transferred to a Trust. The following types of property can be effectively transferred to a Trust:
a. Personal property
b. Automobiles
c. Real Estate (Real property)
d. Bank Accounts
e. Registered Stocks & Bonds
f. Life Insurance
g. Retirement Plans
3. Decide who will inherit your trust property.
4. Choose someone to be your successor trustee.
5. Choose someone to manage children's property (if applicable to your situation).
6. Prepare the trust and sign it in front of a notary.
7. Transfer title of property to yourself as trustee.
8. Store your trust document safely.
Question #10 – Wills
Can you cancel your own Will?
Answer #10
Yes, you may revoke your own will. You may revoke by: including a provision in a subsequent will which revokes any prior will, or by burning, canceling, tearing or obliterating your will and any copies of it.
MVP Law Group would like to thank everyone who contributed a question or comment.
Our next “Estate Planning Q & A Forum” is scheduled for Monday, February 13th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Tuesday, January 24, 2012
Next Estate Planning Q&A Forum - Friday, January 27, 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 27th, 2012. Act now and submit your questions!
Our next “Q & A Forum” will take place Friday, January 27th, 2012. Act now and submit your questions!
Friday, January 13, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Friday, January 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 – Health Care Proxy
What does it mean to have a health care proxy? Does it cost any money to obtain one?
Answer #1
A Health Care Proxy is a document that allows a patient to appoint an agent to make health care decisions on the patient’s behalf in the event that the patient is incapable of making such decisions. Once the document is drafted, the patient continues to be allowed to make health care decisions as long as they are still competent to do so. In Maryland, we use a document called an Advance Directive which lays out your health care wishes in the event you are unable to communicate them and appoints an agent to make health care decisions on your behalf.
You can request that an Attorney draft an Advance Directive on your behalf OR you can download an advance directive off of the Maryland Office of the Attorney General website.
Question #2 – Life Insurance
How should I decide how much life insurance to purchase?
Answer #2
There are several considerations: how much will it take to meet your family’s needs; how long your family will need the monetary support; and if any family members suffer from chronic health issues or disabilities. We recommend that you speak with an experienced Professional in the Life Insurance business.
Question #3 – Trusts
What are Qualified Terminable Interest Property (QTIP) Trust and Qualified Personal Residence Trust (QPRT) and how does one qualify for these types of trusts?
Answer #3
A QTIP is the most common type of marital trust. A QTIP allows the grantor to provide for a surviving spouse and maintain control of how the trust's assets are distributed once the surviving spouse has died. It has two principal requirements, namely that the spouse have a “qualifying income interest for life,” and that the decedent’s personal representative elect to treat this type of trust as qualifying for the marital deduction on the death of the first to die. IRC §2056(b)(7).
A QPRT is an irrevocable trust created by the Grantor for the Grantor’s benefit. The Grantor funds the trust by transferring a primary or secondary residence into the trust retaining the continued right to use the residence for the term of the trust. The Grantor must select a term of years that the trust will exist. After the trust ends, the residence will pass to the named trust beneficiaries. The QPRT is a tax strategy for the wealthy.
Question #4 – Will
What type of stuff does a will not cover?
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 – Life Insurance
What is the difference between term and whole-life insurance?
Answer #5
Term life insurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time.. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the applicant must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Whole life insurance is life insurance that remains in force for the insured's whole life and requires (in most cases) premiums to be paid every year into the policy.
We recommend that you speak with an experienced Professional in the Life Insurance business.
Question #6 – Will
If I leave my children out of my will, does that automatically disinherit them?
Answer #6
No; however, you are allowed to disinherit your children. When you disinherit a child you must make sure to mention them by name in the will and say that they should receive nothing; otherwise, there is still potential for them to take something.
Question #7 – Will
At what age should I meet with a lawyer to start planning my will?
Answer #7
It does not necessarily depend upon age, but upon life circumstances. We recommend that when circumstances change you plan for it accordingly in your will. Such as the following situations: marriage; divorce; birth; death; acquiring of a business; dissolution of a business; etc.
Question #8 –Will
Do I need to hire a lawyer to make a legal and binding will?
Answer #8
No. 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. Additionally, different states have differing requirements in order to make a will valid under the law. It is always better to have the assistance of an experienced attorney to guide you through the challenging process.
Question #9 – Probate
Does the executor of my estate have to be my lawyer?
Answer #9
No; however, the executor of your estate should be someone whom you trust.
Question #10 – Will
Can a will be changed after the person that created it has passed away?
Answer #10
No.
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, January 27th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – Health Care Proxy
What does it mean to have a health care proxy? Does it cost any money to obtain one?
Answer #1
A Health Care Proxy is a document that allows a patient to appoint an agent to make health care decisions on the patient’s behalf in the event that the patient is incapable of making such decisions. Once the document is drafted, the patient continues to be allowed to make health care decisions as long as they are still competent to do so. In Maryland, we use a document called an Advance Directive which lays out your health care wishes in the event you are unable to communicate them and appoints an agent to make health care decisions on your behalf.
You can request that an Attorney draft an Advance Directive on your behalf OR you can download an advance directive off of the Maryland Office of the Attorney General website.
Question #2 – Life Insurance
How should I decide how much life insurance to purchase?
Answer #2
There are several considerations: how much will it take to meet your family’s needs; how long your family will need the monetary support; and if any family members suffer from chronic health issues or disabilities. We recommend that you speak with an experienced Professional in the Life Insurance business.
Question #3 – Trusts
What are Qualified Terminable Interest Property (QTIP) Trust and Qualified Personal Residence Trust (QPRT) and how does one qualify for these types of trusts?
Answer #3
A QTIP is the most common type of marital trust. A QTIP allows the grantor to provide for a surviving spouse and maintain control of how the trust's assets are distributed once the surviving spouse has died. It has two principal requirements, namely that the spouse have a “qualifying income interest for life,” and that the decedent’s personal representative elect to treat this type of trust as qualifying for the marital deduction on the death of the first to die. IRC §2056(b)(7).
A QPRT is an irrevocable trust created by the Grantor for the Grantor’s benefit. The Grantor funds the trust by transferring a primary or secondary residence into the trust retaining the continued right to use the residence for the term of the trust. The Grantor must select a term of years that the trust will exist. After the trust ends, the residence will pass to the named trust beneficiaries. The QPRT is a tax strategy for the wealthy.
Question #4 – Will
What type of stuff does a will not cover?
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 – Life Insurance
What is the difference between term and whole-life insurance?
Answer #5
Term life insurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time.. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the applicant must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Whole life insurance is life insurance that remains in force for the insured's whole life and requires (in most cases) premiums to be paid every year into the policy.
We recommend that you speak with an experienced Professional in the Life Insurance business.
Question #6 – Will
If I leave my children out of my will, does that automatically disinherit them?
Answer #6
No; however, you are allowed to disinherit your children. When you disinherit a child you must make sure to mention them by name in the will and say that they should receive nothing; otherwise, there is still potential for them to take something.
Question #7 – Will
At what age should I meet with a lawyer to start planning my will?
Answer #7
It does not necessarily depend upon age, but upon life circumstances. We recommend that when circumstances change you plan for it accordingly in your will. Such as the following situations: marriage; divorce; birth; death; acquiring of a business; dissolution of a business; etc.
Question #8 –Will
Do I need to hire a lawyer to make a legal and binding will?
Answer #8
No. 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. Additionally, different states have differing requirements in order to make a will valid under the law. It is always better to have the assistance of an experienced attorney to guide you through the challenging process.
Question #9 – Probate
Does the executor of my estate have to be my lawyer?
Answer #9
No; however, the executor of your estate should be someone whom you trust.
Question #10 – Will
Can a will be changed after the person that created it has passed away?
Answer #10
No.
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, January 27th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
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!
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.
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!
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.
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!
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.
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!
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.
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!
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.
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.
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