YOUR QUESTIONS ANSWERED
November 2024 Q: Who are all these people mentioned in my documents? A: Allow me to clarify: Fiduciary – person who acts in a position of trust over another person or that person’s assets - everyone below is a particular kind of fiduciary. Trustee – fiduciary who administers a trust and the assets owned by a trust. Guardian – appointed by a court to administer your financial affairs or oversee your medical care and have custody of your person in the absence of an effective power of attorney. Executor – fiduciary nominated by you in your will to execute the terms of your will, usually appointed by the Orphan’s Court/Register of Wills as Personal Representative (“PR”) unless someone demonstrates that the nominated executor has some...
(DON’T) DO IT YOURSELF!
October 2024 So you have some free time to do some research on the Internet to find out how to draft your own will. There are too many forms online for you to pay a lawyer. Lawyers are just so 1990s! You find a site that promises a document that will be effective “in all 50 states.” That’s good, you think, because you don’t really want to stay in Maryland forever. Taxes are too high here. You start clicking boxes. You select “simple will” and type in the name of your kids and your executor. You know your estate can’t be anything complicated. You just have a house and bank account, and a couple of IRAs. You want everything to go to the kids equally. Except for grandpa’s watch and your guns. The watch goes to your nephew, and your guns go...
YOUR QUESTIONS ANSWERED
September 2024. Q: I’ve signed a Life Estate Deed so that my children will receive full ownership of my house without probate. Is there anything else I have to do? A: Yes. It is still your responsibility to pay the mortgage, taxes and insurance – believe it or not, clients have misunderstood this. If you sell the property, the buyer’s title company might want you to take the kids off the deed for simplicity. We can do that for you, at a reduced cost. Just call us. When you die, your children will be responsible for insuring the property and paying taxes. They should contact me to have me prepare a “confirmatory deed” reciting that you are deceased and they are the record owners. This will clean up the tax record. They can take that deed...
YOUR QUESTIONS ON PROBATE
August 2024. Q: My mother just died. Do I need to do probate? A: If there was anything just in her name, with no living joint owner or beneficiary, then we have something that nobody owns. Nobody can take money out of a bank account that nobody owns; nobody can sell a car or house that nobody owns. “Probate” is the way we get someone appointed by the court to take care of an asset or account that nobody owns. If all of your mother’s assets and accounts had joint owners or beneficiaries, no probate is necessary. Q: My mother is the only owner of her bank account. My mother’s will says I get everything and that I’m the executor. Can’t I just take that to the bank? A: Sorry, that’s the stuff of old movies, but not how we do things now. The...
MORE ON GUARDIANSHIP
July 2024. Q: I’m the court-appointed guardian for my brother. He just died. What do I have to do? A: I’m sorry, both that your brother passed away and that you have to go through all the steps required for the termination of a guardianship. First, you have to petition the court to terminate the guardianship. The process is different for guardianship of the person and guardianship of the property. Strangely, even though your brother is deceased, the guardianship of his person doesn’t terminate until the court says so. It’s important to note that you only have 45 days from the date of his death to do this. For guardianship of the property, you have to give a final account of his financial affairs, and petition the court to terminate the...
THE DIFFICULTIES OF GUARDIANSHIP
June 2024. Q: My sister can’t pay her own bills anymore and can’t take care of herself. What can I do? She never signed a power of attorney. A: Your only option is to file in the courts for guardianship. Unfortunately, that’s a long, expensive and frustrating process. You have to file numerous forms with the court, including certificates from two medical providers attesting that they have examined your sister and found that she is unable to take care of her own needs. That form itself is about 6 pages long, and there are about 5 more that you need to file. The law requires that the court appoint an attorney for your sister, who will meet with her and probably with you and the doctors to see if your sister objects to the appointment of a...
FLY AWAY
May 2024. The vacation is all planned, tickets bought, pet sitters engaged, but … “Hon, did we ever sign that will?” “What will? The one you downloaded? No, because we could never figure out the thing for the kids’ money.” “Oh, yeah. Well, do you want to pull it up again?” “Are you kidding? After the argument we got into last time?” “Well, what about talking to a lawyer? There’s this guy the neighbors mentioned …” Before you board the plane, make sure you’re not leaving legal chaos behind. Your Will: Is your will up-to-date? Does it still name your deceased brother as executor? Your Powers of Attorney: If you weren’t able to make decisions for yourself – or if you weren’t able to get home when you plan to – is there someone still local...
YOUR QUESTIONS ON DOMESTIC PARTNERSHIP. PART 2.
April 2024. Q: I’m not married to my partner, but want to leave everything to my partner when I die. I’ve heard that there are huge taxes. What can I do? A: If you and your partner are “domestic partners,” the Maryland inheritance tax that levies a 10% tax when your partner inherits from you can be eliminated. You become “domestic partners” by either (a) registering your partnership as a domestic partnership with the Register of Wills, or (b) signing an affidavit that says you’re domestic partners and providing evidence of the “relationship of mutual interdependence.” Oddly enough, the law does not require intimate relations or even living together, so you and your roommate can be “domestic partners” even if you aren’t intimate; and you...
YOUR QUESTIONS ON DOMESTIC PARTNERSHIP. PART 1.
March 2024. Q: I’m not married to my partner. I have kids from my marriage. Why do I need a will? Won’t everything just go to my kids, since my partner and I aren’t married? A: As of last year, your “domestic partner” becomes like a spouse, and will get half of your estate if you don’t have a will. Your “partner” might be your “domestic partner” if you have agreed “to be in a relationship of mutual interdependence in which each individual contributes to the maintenance and support of the other individual and the relationship, even if both individuals are not required to contribute equally to the relationship.” That agreement might be substantiated by an affidavit signed by you and your partner, but doesn’t have to be, so it’s best to...
WHO TO TELL?
February 2024. Q: When I sign a power of attorney or will, who knows about it? A: Only you, your attorney, and anyone you tell. Your attorney can’t even disclose that he or she has met you, and certainly can’t disclose that you’ve signed a power of attorney or will, or what its contents might be. There’s no “registry” or database that contains this information. It’s up to you who you tell that you’ve signed a power of attorney or will. If you don’t tell anyone that you signed these documents, then no one will know to look for them, and your affairs might be administered without regard to your documents, which might result in guardianship proceedings before the court or your estate being distributed to the wrong people. Many of my clients...
YOUR QUESTIONS ANSWERED – JANUARY ’24
January 2024. Q: I need a trust so my kids don’t have to pay a boatload of taxes. A: Actually, a trust doesn’t avoid taxes. In fact, a trust might actually increase the taxes due if your estate plan is not correctly set up. For example, if your IRA or 401(k) pays to your trust and your trust isn’t drafted correctly, the entire payment might be taxed as income to the trust, and trusts can pay much more in taxes on a dollar of income. But aside from IRA’s, 401(k)’s and other retirement plans or annuities, inheritances are not income, so there’s no tax on the inheritance itself. Let’s look at your situation to see if a trust is best for you, or whether there is a simpler way to plan your estate and benefit your kids without the expense of a...
INTESTACY
December 2023. Revised August 2024 Q: What happens if everyone named in my will is deceased? A: Under Maryland law, if you are not survived by the beneficiaries named in your will, your estate (everything you own that does not have a living joint owner or beneficiary) will be distributed as if you had no will (“intestacy”). Assuming your spouse or domestic partner and children and their descendants (your grandchildren) have already died, this would be as follows: 1. To your parents or the survivor of them, or, if both are deceased, to their descendants (your siblings, or nieces and nephews), or, if none, 2. To your grandparents (1/2 to each pair) or the survivor of each pair, or, if both of one pair is deceased, to their descendants (your...