Unfortunately, estate planning is often neglected. This can be attributed to the common misconception that only certain indivduals should consider creating an estate plan. Most wrongly assume that estate planning is only beneficial for wealthy indivduals. However, that is far from the truth. Regardless of wealth, anyone with assets or a family should execute an estate plan. Estate planning is a critical process that ensures that you, your hard-earned assets, and your loved ones are safeguarded in the future after your passing. If you are considering creating an estate plan, it’s in your best interest to contact a trusted Montgomery County Estate Planning Attorney who can guide you through this complex process. Please continue reading to learn who can benefit from creating an estate plan in Maryland.
Who Can Benefit From Creating an Estate Plan in Maryland?
According to research, roughly half of Americans don’t have a will, and even fewer have an estate plan. Understandably so no one wants to think about dying. As such, many people put off estate planning. However, despite the difficulties associated with confronting our mortality, being prepared for the inevitable is critical. That said, any adult who is 18 years old or older who has assets should consider drafting an estate plan. It’s important to understand what will happen if you fail to create an estate plan in Maryland.
If you pass away without a valid will, you are considered to have died “intestate.” This means that the state will control your assets and distribute them according to Maryland’s intestate succession law, which typically follows bloodlines and degrees of consanguinity to determine who has priority to inherit your assets. Essentially, if you die with a surviving spouse, children, living parents, or other relatives, your assets may not be distributed according to your wishes. For instance, if you die with a spouse and children who are minors, your spouse will inherit 1/2 of your intestate property and the children will inherit everything else. It’s important to understand that even if you don’t have a spouse or children, you can still leave your hard-earned assets to your friends or charitable organizations.
What Should I Include?
Contrary to popular belief, an estate plan is much more than just a will. Although this is the fundamental foundation of a comprehensive estate plan, other legal documents should go hand in hand with a will. One thing that you should consider while estate planning is establishing a power of attorney and advance health care directive. This allows a trusted individual or individuals, to carry out certain, financial, legal, and business activities on your behalf. In addition, a health care proxy through an advance health directive is a person that you trust to make health decisions on your behalf in the event you are no longer capable of doing so yourself as a result of incapacitation. Furthermore, you should consider creating a trust fund, as it can provide certain tax benefits.
As you can see, creating an estate plan is critical to protect your hard-earned assets and loved ones after your passing. For information about the estate planning process, please don’t hesitate to contact an experienced attorney from JD Katz, who can help guide you through every step of the process ahead.