If you have finally decided to take the necessary steps to protect your hard-earned assets and ensure your legacy, it’s crucial to understand the estate planning process in Maryland. Many people confuse estate planning with writing a will. However, one is just part of the other. In other words, an estate plan is a broader plan of action for your assets that will apply during your life and after your death. On the other hand, a will is a legal document that dictates explicitly how to distribute the possessions that make up your estate after you die. A will is only one of the various documents in a comprehensive estate plan. If you are considering estate planning, contact a determined Montgomery County Estate Planning Attorney who can help ensure that your wishes are met and assets are secured.
What Does an Estate Plan Do?
An estate plan is a set of legal documents that protect your family and property by naming certain people to oversee the administration of your estate when you pass away and name the estate’s beneficiaries. Estate planning documents can also name people who can make medical and financial decisions on your behalf if you cannot do so for yourself due to incapacitation. Essentially, you can establish wills, powers of attorney, advance directives, trusts, and more through estate planning. Creating an estate plan is paramount as it can ensure the best outcome for your loved ones. An estate plan can help avoid unnecessary taxes and discourage fighting between beneficiaries.
How is Estate Planning Different From a Will?
As mentioned above, a will is part of an estate plan. A last will is the foundation of any good estate plan. This legal document outlines your wishes to distribute your property after you die and who will be named guardians of your minor children. In simple terms, the personal representative will follow a set of instructions to administer your estate. An estate plan can address other estate planning matters that cannot be addressed in a will.
It’s a common misconception that wills are for ordinary people, and estate plans are for the wealthy. In reality, this couldn’t be any further from the truth. Regardless of the size of your estate, there are always essential bases to cover to ensure your hard-earned assets are safeguarded. If you only choose to create a will, your estate could be subject to probate. This can be a stressful, expensive, and time-consuming legal process for those involved. In addition, your assets could end up being exposed to hefty taxes. Therefore, the people or organizations you intended to benefit from your estate may be left with much less than you anticipated.
If you are considering estate planning, please don’t hesitate to contact a trusted attorney from JD Katz. Our firm can help you navigate this complex process. Contact our firm today to schedule an initial consultation to start preparing for the future.