Wills and Trusts in Maryland
Planning for the future is one of the most important steps you can take to protect your loved ones. Without a legally sound estate plan, Maryland’s intestacy laws will determine how your assets are distributed. This means your estate could be handled in ways you never intended, leaving your family with added stress and legal hurdles.
By creating a will or trust, you maintain control over who inherits your property, who will care for your minor children, and how your final affairs will be handled. These documents also help streamline the legal process, ensuring your assets are distributed as efficiently as possible.
Estate planning is not just for the wealthy—it’s a critical tool for anyone who wants to safeguard their financial legacy. A carefully prepared estate plan can prevent unnecessary court involvement, reduce taxes, and eliminate potential conflicts among heirs.
The time to start planning is now. Working with an experienced estate attorney in Maryland can help ensure that your will or trust meets legal requirements and accurately reflects your wishes.
Wills vs. Trusts
A will is a legal document that specifies how your property and assets should be distributed after your death. It also allows you to designate an executor to manage your estate and name a guardian for minor children. In Maryland, a valid will must be signed by the testator and witnessed by two competent individuals.
A trust is a legal entity that holds assets on behalf of beneficiaries. Unlike wills, trusts do not go through probate, which means they can help expedite asset distribution and maintain privacy. Maryland law allows for a variety of trusts, including revocable, irrevocable, and special needs trusts, each designed to meet different estate planning objectives.
How to Create a Will or Trust in Maryland
Identify Assets
Start by taking inventory of your assets, including real estate, savings, retirement accounts, and personal property. Having a clear picture of your estate ensures that nothing is overlooked in your estate plan.
Choose the Distribution
Next, determine how you want your assets to be distributed. Some accounts, such as life insurance policies and retirement funds, have named beneficiaries that override your will. Regularly reviewing and updating these designations is essential.
Choose the Executor of your Maryland Will or Trust
Selecting an executor or trustee is a key decision in estate planning. In Maryland, an executor must be at least 18 years old and legally competent. Many people choose a trusted family member, while others prefer an attorney or financial professional to oversee their estate.
Choose a Guardian
For parents of minor children, naming a guardian in your will ensures their care is handled according to your wishes. If you do not make this designation, the court will appoint a guardian, which may not align with your preferences.
Sign with Witnesses
A will is legally binding in Maryland only if it is signed in the presence of two witnesses. Ensuring compliance with these legal formalities prevents potential disputes or challenges to your will.
Update and Create your Will or Trust as Necessary
Estate plans should be reviewed regularly, particularly after major life changes such as marriage, divorce, or acquiring new assets. Keeping your plan updated ensures it continues to reflect your wishes.
According to the Maryland State Bar, a will can be updated at any time before death. However, changes should generally be made only in response to major life events, such as divorce or adoption. Instead of altering the original will, any modifications should be made through a separate document known as a codicil.
The Different Types of Wills in Maryland
Simple Will
A simple will is the most basic form of a will, allowing you to specify how your property should be distributed. However, it does not prevent your estate from going through probate.
Joint Will
A joint will is a single will executed by two people, typically spouses, detailing how assets will be distributed after both have passed. While valid in Maryland, joint wills can be restrictive because they typically cannot be modified after one spouse’s death.
Living Will
A living will, also known as an advance healthcare directive, outlines your medical treatment preferences in case you become incapacitated. This document ensures that healthcare providers follow your wishes regarding life-sustaining treatments.
Holographic Will
A holographic will is a handwritten document signed by the testator, whether written on a scrap of paper or a notebook page. While most states require witness signatures to confirm its validity, some allow these wills, particularly in emergency situations.
Maryland law recognizes holographic wills, but they must strictly comply with state requirements. Even minor deviations can lead the court to reject the will, potentially leaving the testator without a valid estate plan.
Pour-Over Will
A pour-over will is designed to work alongside a trust, transferring any remaining assets into the trust upon your death. This ensures that all property is distributed according to the trust’s terms.
The Different Types of Trusts in Maryland
Irrevocable Trust
An irrevocable trust cannot be modified once established. It is often used for asset protection, estate tax reduction, and Medicaid planning.
Revocable Trust
A revocable living trust allows the grantor to manage their assets during their lifetime and ensure a seamless transition to beneficiaries upon death. Since assets in a revocable trust bypass probate, they are distributed more efficiently.
Family Trust
Many people establish this type of trust to provide for their loved ones after their passing. It offers peace of mind knowing that children, siblings, or other family members will receive the portion of assets you’ve set aside for them.
Charitable Trust
A charitable trust allows individuals to set aside assets for nonprofit organizations while offering potential tax benefits. Some charitable trusts enable donors to provide for their heirs before transferring the remaining assets to charity.
How to Avoid Probate in Maryland
Probate can be lengthy and costly, but there are strategies to minimize or bypass it entirely. Establishing a revocable living trust is one of the most effective ways to transfer assets outside of probate.
Joint ownership with rights of survivorship ensures that property passes directly to a surviving owner without probate. This is commonly used for real estate and financial accounts.
Using payable-on-death (POD) and transfer-on-death (TOD) designations allows bank accounts, securities, and real estate to pass directly to beneficiaries without probate involvement.
Maryland also offers a small estate affidavit process for estates valued at $50,000 or less ($100,000 if the sole heir is a spouse). This process allows heirs to claim assets without going through formal probate proceedings.
Estate planning requires careful attention to Maryland’s state laws and personal financial circumstances. By working with an estate planning attorney, you can ensure that your assets are protected and distributed according to your wishes, avoiding unnecessary legal complications for your loved ones.
Work with an Experienced Maryland Estate Planning Will and Trust Attorney
Planning for your eventual death is not a pleasant task. Along the way, you are bound to wonder how wills and trusts work in Maryland? How can I make this process easier?
It is tedious, but it’s crucial in order to ensure that your family and legacy are secured. The law does not require an individual to hire a trust attorney or will lawyer, but they can prove invaluable if they catch issues that could result in your estate going to probate. If you feel like you need help, it’s worth your time to consider hiring an experienced estate planning attorney. We can even help you connect with legal help across Maryland state lines.
Submit a request or call us today at (866)-345-6784 to speak to a local will and trust attorney!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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