what is included in my maryland estate plan
TRANSCRIPT
![Page 1: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/1.jpg)
WHAT IS INCLUDED IN MY MARYLAND
ESTATE PLAN? “The ideal estate plan will vary depending on the circumstances. However, there is a basic framework, and we will look at the rudimentary anatomy of an estate plan in this paper.”
Colleen Sinclair Prosser
Annapolis, Maryland Estate Planning Attorney
![Page 2: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/2.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 2
The ideal estate plan will vary depending on the circumstances. However, there is
a basic framework, and we will look at the rudimentary anatomy of an estate
plan in this paper.
TRANSFERRING MONETARY ASSETS
When you plan your estate, you facilitate postmortem asset transfers. There are
various different legal devices that can be used to state your wishes regarding
the distribution of your resources. One commonly utilized vehicle of asset
transfer is the last will.
![Page 3: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/3.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 3
If you use a last will to state your final wishes, you nominate an executor. This is
the person who will administer the estate after you pass away. The executor
would be required to admit the will to probate, and the court would supervise
the administration of the estate.
This is not inherently negative, but there are some pitfalls that go along with the
probate process. For one, it is time-consuming. In most areas, a case that is not
complicated in any way will be stalled in probate for close to a year. The
inheritors receive nothing during the probate process, so this time lag can be a
cause for concern.
Probate can also be
expensive. There are various
different costs that
accumulate during the
process, and these
expenditures reduce the
value of the estate before it
is passed on to the heirs.
A revocable living trust can
be used as an alternative to
a last will as your primary asset transfer vehicle. With a revocable living trust,
you can retain control of the assets while you are living. You would typically act
as the trustee and the beneficiary while you are alive and well, and you can even
dissolve the trust if you choose to do so.
![Page 4: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/4.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 4
After your passing, the successor trustee that you name in the trust declaration
would distribute assets to the beneficiaries in accordance with your wishes
outside of the process of probate.
There are other types of trusts that can be used to satisfy more advanced
objectives. For example, high net worth individuals may be exposed to the estate
tax. You would face exposure if your assets exceed the amount of the estate tax
exclusion. The exclusion
stands at $5.45 million in
2016. The portion of your
estate that exceeds this
amount would potentially
be subject to taxation
when it is being
transferred to the heirs.
We practice law in
Maryland, and there is a state-level estate tax to contend with in our state as
well. The exclusion on the state level is just $2 million.
Certain irrevocable trusts are used to gain estate tax efficiency. These would
include grantor retained annuity trusts, generation-skipping trusts, charitable
lead trusts, charitable remainder trusts, and qualified personal residence trusts.
Special needs planning can enter the picture for some families. You could use a
![Page 5: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/5.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 5
supplemental needs trust to provide for a loved one with special needs without
impacting eligibility for government benefits like Medicaid and Supplemental
Security Income.
Trusts that include stipulations can also be created. The stipulations would
prevent spendthrift heirs from squandering their inheritances.
INCAPACITY PLANNING
A well-constructed estate plan will also include an incapacity planning
component. Many elders become unable to handle their own affairs at somepoint
in time, with Alzheimer's
disease being a leading
cause of incapacitation.
You could use a legal
document called a durable
power of attorney to
name someone to handle
your financial affairs in the
event of your
incapacitation. Your incapacity plan could also include a health care proxy or
durable power of attorney for health care. With this document, you empower
someone to make medical decisions on your behalf.
![Page 6: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/6.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 6
A living will would be part of the plan as well. A living will would be used to state
your preferences regarding the implementation of artificial life-sustaining
measures.
SUMMARY
Estate planning is a core responsibility of adulthood. Everyone should have an
estate plan in place, because you
never know what the future will
hold. Even if you are a young
adult, you should devise a plan to
protect your family members.
There are numerous different
legal devices that can be used to
state your final wishes regarding
the distribution of your resources.
The ideal choice or choices will
vary depending upon the
circumstances.
You should also name decision-
makers to act on your behalf in
the event of your incapacitation
![Page 7: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/7.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 7
when you create your estate plan, and you should express your wishes regarding
the utilization of life support measures.
If you would like to obtain more detailed information about estate planning,
contact a licensed estate planning attorney to set up a consultation.
REFERENCES
Forbes
http://www.forbes.com/sites/janetnovack/2012/10/14/the-forbes-guide-to-
estate-planning/
American Bar Association
http://www.americanbar.org/groups/real_property_trust_estate/resources/estate
_planning.html
![Page 8: What Is Included in My Maryland Estate Plan](https://reader036.vdocument.in/reader036/viewer/2022092622/587708c81a28ab890e8b5fd7/html5/thumbnails/8.jpg)
What Is Included in My Maryland Estate Plan? www.sinclairprosserlaw.com 8
About the Author
Colleen Sinclair Prosser Currently the owner and manager of SinclairProsser Law, LLC, Colleen steers her firm with both a guiding hand and direct involvement with the clients, bringing to the table a wealth of Estate Planning experience from many years spent at the helm of a busy law practice. In recent years Colleen served on the Board of Trustees for By Their Side, Lifelong Advocates for
Marylanders with Developmental Disabilities, and on the Board of Governors of the American Academy of Estate Planning Attorneys. EXPERIENCE An established member of the American Academy of Estate Planning Attorneys, Colleen offers years of experience in estate preservation and transfer. A strong proponent of the living trust, she also focuses on wills, powers of attorney, living wills, probate, trust administration, prenuptial agreements, nursing home planning, and special needs planning. She strongly endorses long-term care insurance and, in certain cases, life insurance and some annuities as valuable estate preservation vehicles, and strives to assure the compatibility of her clients’ estate plan and financial plan. Sensitive to the challenges presented by lifestyle and circumstance, Colleen addresses each situation with personal attention, wisdom, and skill.
SinclairProsser Law, LLC www.sinclairprosserlaw.com
ANNAPOLIS 900 Bestgate Road Suite 103 Annapolis, MD 21401 Phone: (410) 573-4818 Fax: (410) 573-2802
MILLERSVILLE 1520 Jabez Run Rd, Suite 300 Millersville, MD 21108 Phone: (410) 573-4818 Fax: (410) 573-2802
BOWIE 14300 Gallant Fox Lane, Suite 204 Bowie, MD 20715 Phone: (301) 970-8080 Fax: (410) 573-2802
WALDORF Waldorf Business Suites, LLC 3195 Old Washington Road, Suite 102 Waldorf, MD 20601 Phone: 800-366-4615