What Should Caregivers Know About Creating a Care Agreement?

When someone dies in Baltimore, MD, the money and property in that person's name must usually go through the Register of Wills. A probate attorney can tell your family whether Maryland's small estate process can apply. If so, things will be faster, cheaper, and easier. Small Estate Procedures in Baltimore, MD After a death, the person holding the original will must take it to the Register of Wills in the county or city where the deceased person lived, even if the family is not ready to open an estate. That office keeps the will as a public record, and anything titled only in the deceased person's name is a probate asset. Probate assets can't be collected by the family until the office appoints a personal representative to handle it. The personal representative of an estate is usually named in the will, or, if there is no will, the next person Maryland law allows to serve. Going through the normal probate process can be expensive, difficult, and time-consuming, which is why Maryland has an option for small estates. Small Estate Qualification When the probate assets are worth $50,000 or less on the date of death, the estate counts as small. If a surviving spouse is the only person who can inherit, that limit rises to $100,000. The count includes only property in the deceased person's name and property held as tenants in common. A small estate process is meant to be simpler than the process with a regular estate. Most of these files are handled at the Register of Wills desk and don't go to court at all. The office charges no probate fee, which also makes the process cheaper (though the family may still need to pay a newspaper to run a notice, and some files still need a bond). Discovering the Estate Value The process starts when the family has their lawyer put through a Petition for Administration, which lists what the person owned and what the person owed, using values as of the date of death. A List of Interested Persons is also required, and this must name everyone who inherits under the will and everyone who would inherit if there were no will. The people in the second group must be named even if there is a will. Those forms need to be accompanied by the original will, a death certificate, and proof of value for all property, including: Bank, retirement, and stock accounts Land and real estate Furniture, jewelry, and other valuable personal items Vehicles Guns and collectables Inheritance Tax Maryland does have an inheritance tax, but it does not apply to property paid out of a qualifying small estate. That rule is separate from the usual exemptions for a spouse, registered domestic partner, child, parent, grandchild, sibling, or charity. Other relatives who would normally pay a 10% tax on a regular estate do not pay that tax if their inheritance comes from a small estate. Protect Your Estate With a Probate Attorney Whether you're planning your estate and want to ensure everything can be done through the small estate process or you're currently dealing with a loved one's estate, a probate attorney can help you with the process. Visit Elville and Associates today to set up an appointment. We serve the Baltimore area, Columbia, Rockville, Annapolis, and beyond.

Maryland collects both an estate tax and an inheritance tax, and a Columbia, MD estate planning attorney can show you when each tax is likely to affect you and your loved ones and how best to minimize the effects. Maryland Estate and Inheritance Taxes The estate tax measures the value of what you leave as a whole; the inheritance tax is applied against individuals who inherit a particular asset. Maryland is the only state that still imposes both, though some assets are exempt from probate. Estate Tax Details The estate tax applies if your federal gross estate, plus adjusted taxable gifts, plus certain previously elected marital-trust property, equals or exceeds five million dollars. It only applies if you're a Maryland resident when you die, or if you're a nonresident owning real or tangible personal property with a taxable situs in Maryland. The return is due nine months after death, and the tax is due on that same date even if the Comptroller grants more time to file. Property passing to a surviving spouse who is a United States citizen can qualify for a marital deduction, which defers the estate tax until they pass away. Maryland also lets a surviving spouse use the unused portion of the first spouse's five-million-dollar exclusion. Inheritance Tax Details The inheritance tax is a tax on the "privilege" of receiving property from a decedent. Since 2000, neither a spouse, child, grandchild, great-grandchild, stepchild, parent, grandparent, sibling, nor the spouse of a child has to pay any inheritance tax, and a surviving registered domestic partner is exempt now, as well. Any organizations described in Internal Revenue Code section 501(c)(3) are also exempt. Nieces and nephews, uncles and aunts, cousins, friends, or unmarried partners who are not registered domestic partners have to pay 10% of the value of their inheritance to the state. This is true mostly without regard to the size of the estate, though gifts under $1,000 and anything that is dealt with as a small-estate filing are exempt. How They Work Together When both taxes overlap, the inheritance tax gets paid to the Register of Wills and is subtracted from the gross Maryland estate tax. If the inheritance tax equals or exceeds Maryland's computation of the credit for state death taxes, no Maryland estate tax remains. Get Help From an Estate Planning Attorney in Columbia, MD There are various strategies you can use to deal with both these taxes. Living trusts are a great way to take assets out of your estate and designate them for a beneficiary. Charitable giving can reduce the size of your estate, while strategic personal gifts under certain limits can give assets to your loved ones tax-free while reducing the size of the estate. There are more options available. Contact us today at Elville and Associates in Columbia or Rockville today to schedule a free consultation on your estate. We can look through your inventory, every beneficiary form, and the current draft of your will or trust and help you design an estate plan that protects you and your loved ones for the future.

It's natural to assume that we'll be there for our children at least until they become adults. And while that's the most common scenario, life can throw anyone a surprise. Planning out your minor children's inheritance now with a Columbia, MD trusts and estates attorney allows you to provide for your children as the one who knows and loves them best, even if you should pass before they reach adulthood. How the Courts Deal With Orphaned Minors When a parent dies and their assets pass straight to a minor child through a will or beneficiary designation, the Maryland's Orphans' Court will often step in to appoint a guardian of the property to manage the inheritance. That guardian files reports, may need to post a bond, and must seek approval for many spending decisions. And while the courts are careful and most guardians are reliable, there are no guarantees: someone you do not know will still have control of your children's inheritance. How a Revocable Living Trust Keeps You in Charge A revocable living trust is an excellent way to keep the courts out of your children's inheritance. You create the trust now, name yourself as trustee, and then transfer ownership of the bank accounts, investments, real estate, and other assets you want to leave your children. You retain full control of these assets so long as you're alive, and the trust document spells out exactly what happens after your death. If you pass away, your successor trustee – someone you trust and name – steps in immediately to manage the assets and follow your written instructions. There's no need to file anything with the Probate or Orphans' court. Planning Your Trust Details Inside the trust, you can build the rules. You might, for instance, create a separate share for each child. You can direct the trustee to use the funds for everyday needs, education, or medical care. You set the schedule when your children receive any bulk sums; perhaps one-third is available at age 25, another third at 30, and the balance at 35. Some parents add milestones for money to be paid out, such as finishing college or starting a business. You can also make the trust itself the beneficiary of certain accounts, such as life insurance. The funds in those accounts would be added to the trust upon your death. This is often better than directly naming a minor child as a beneficiary, as this can create some complications many families prefer to sidestep. Talk to a Columbia, MD Trusts and Estates Attorney Making arrangements now is never easy, since it means contemplating life for our kids without us there to guide them. But if the unexpected should happen, your children will get the support you want for them with minimal outside interference. If you would like to explore how to put such a plan in place for your family, contact Elville and Associates in Columbia, Rockland, or Annapolis, MD to book a consultation. Our mission is “planning that works,” and we stick with you through our Client Care Program to ensure your plan is always up to date, reflects your wishes, and gives you peace of mind.