December 8, 2016

It Is Time to Review Your Estate Plan

You should review your estate plan anytime something significant changes that could have an impact on your plans. That means that you should be reviewing it now.

Some things do get better with age. However, unlike fine wine and good cheese, estate plans do not improve after aging.

An estate plan can be viewed as a snapshot of a person's financial and life situation at the moment the plan is made. When something changes in a person's financial or life situation the snapshot is no longer an accurate representation. If the change was significant enough, then the estate plan itself could be ineffective.

For this reason, estate planning attorneys suggest that their clients review their estate plans every few years to make sure the plans are still good. Another reason to review estate plans is when there have been legal changes that could affect the plans. There have been recent changes in Maryland law and D.C. law in the past two years that mean residents of those states should review their plans. Maryland has enacted the Maryland Trust Act and D.C. has changed laws regarding wills and trusts as well.

Recent Treasury Department regulatory changes make it likely that your plan needs review as Wealth Management points out in "Remind Clients Importance of Updating Estate Plans."

Take some time to review your estate plan and consult with Profit Law Firm about whether you need to update your estate plan.

Make sure that it still does everything that you want it to do. Ask yourself if there have been any changes to your life and finances that are not reflected in your plan. Then, call your estate planning attorney and ask about any legal changes that have been enacted since you made your estate plan.

Once you are done with that and have an idea what needs to be changed in your estate plan, go to and have the changes made by your attorney.

Reference: Wealth Management (Nov. 21, 2016) "Remind Clients Importance of Updating Estate Plans."

November 23, 2016August 27, 2023

A Bypass Trust Might Still Be Your Best Option

Relatively recent changes to federal estate tax law have made bypass trusts less popular than they used to be. However, they are still good in many circumstances.

It used to be a complicated process for a married couple to get the most out of the estate tax exemption. When one spouse passed away his or her estate tax exemption could be useless if all of the assets went to the other spouse directly. When the second spouse passed away all of the couple’s assets would be considered part of his or her estate and the individual estate tax exemption would be applied.

To get around this couples had to get a “bypass” trust of which there were many types. Essentially, the surviving spouse was bypassed in the estate plan.

The relatively new federal law of spousal “portability” changed this and made bypass trusts less necessary. Now, if the paperwork is properly filled out, a surviving spouse can elect to carry over the deceased spouse’s estate tax exemption and use it along with his or her own later.

This move essentially doubles the estate tax exemption.

However, there are some situations where a bypass trust is still a good idea as discussed by the Poughkeepsie Journal in “Bypass trust works better for many families.”

Many states have estate taxes of their own and they do not all allow spousal portability. For instance, Maryland has a state estate tax and the District of Columbia has a state estate tax. Thus, in Maryland and the District of Columbia a bypass trust is still necessary to take full advantage of estate tax exemptions. A bypass trust can also be used to protect against a surviving spouse getting remarried and having all of the couple’s property eventually ending up in the new spouse’s family. As a result, bypass trusts are a useful estate tool for blended families, learn more here. They can also be used as a great way to include other family members in the estate plan, especially grandchildren.

If all this sounds a bit confusing, do not worry. That is why there are estate planning attorneys and firms like us.

Tell the attorney what you want done with your possessions after you pass away and let the attorney worry about the best way to accomplish that while minimizing the estate tax burden on your estate.

Reference: Poughkeepsie Journal (Nov. 4, 2016) “Bypass trust works better for many families.”

November 15, 2016February 15, 2024

Convincing Parents to Create Estate Plan

Many children with aging parents know that their parents should do estate planning, but convincing their parents of that can be difficult.

Many elderly people in the U.S. believe estate planning is something only the very wealthy need. If they only have a few major assets and modest back accounts, then they believe estate planning is unnecessary for them.

Many of their adult children know better, however.

The children know estate planning is an important responsibility for everyone regardless of wealth. While those children would like to talk their parents into estate planning they may find it difficult. In the Washington Metropolitan area, estate planning is very important. Maryland estate planning is critical because Maryland has both a state estate tax and a state inheritance tax. The District of Columbia also has a state estate tax.

This topic was addressed by NJ 101.5 in “Talking to your parents about a will.”

If you find yourself having this problem with your aging parents, there are some steps you can take.

First, explain to your parents that without an estate plan their estates will have to go through probate and everything will be distributed according to state law and not your parents’ wishes. That means if they would like to leave something directly to their grandchildren, they will not be able to do so in most cases. It also means that they might be subject to Maryland or D.C estate planning axes.

You can also talk to your parents about how costly and time-consuming probate can be and how it could be a burden on the family.

If all else fails and you can afford it, you might offer to pay for your parents to visit an estate planning attorney. They do not have to commit to anything before seeing the attorney, but the attorney can discuss the benefits of estate planning with your parents and give them some options. At Profit Law Firm, we also conduct two generation family planning sessions. Contact us for a consultation with Maryland estate planning attorneys and DC estate planning attorneys.

Reference: NJ 101.5 (Nov. 1, 2016) “Talking to your parents about a will.”

October 13, 2016August 15, 2022

Should Seniors Get Married?

Getting married always comes with challenges and finances that needs to be worked out. This is especially true for people in their retirement years.

When people fall in love and decide that they want to get married, they often do not think of all of the financial consequences of their decision to wed. In the popular imagination this is something that young couples do all the time. They rush into a marriage without having first considered all of the financial implications.

However, elder law experts point out that the tendency does not go away with age.

Senior citizens are just as likely to get married without thinking everything through. That can be a problem, because seniors have more they need to think about than younger people as the Hartford Courant reports in “Fit To Be Tied? Think Twice About Marriage In Your Golden Years.”

Senior citizens considering getting married need to think about how marriage will affect all of their other plans, including retirement and estate plans. For example, a retired person might think his well-crafted estate plan to leave his assets to his children is solid and that a new wife with assets of her own will not affect those plans. Under the law, in Maryland and DC, however, a spouse is given inheritance rights. Therefore a retired person should contact a Maryland estate plannning attorney to review options to protect his children and the new spouse. There are several trusts that protect a spouse during life, while leaving the underlying assets to children from a prior marriage. Call Profit Law Firm, for consultation to find an option that works for your family.

In reality, it is almost impossible to cut a spouse out of an estate plan entirely. Consequently, whether or not the couple intends it, the new spouse is likely to inherit something without very careful planning. An estate planning

That is not to say senior citizens should never get married. They just need to think about it and visit an elder law attorney familiar with estate planning to learn about all the implications and what can be done about them.

Reference: Hartford Courant (Sept. 24, 2016) “Fit To Be Tied? Think Twice About Marriage In Your Golden Years.”

September 23, 2016November 26, 2024

Librarian Leaves Millions to University

Every once in a while a story comes out about a person who lived frugally and managed to amass a fortune. The latest example is a librarian from New Hampshire.

Robert Morin loved books. It is believed that with only a few exceptions he once read every book published in the U.S. between 1930 and 1940 in chronological order. Thus, it was probably fitting that when he graduated from the University of New Hampshire in 1963 he went to work in the school’s library.

Librarians do not normally make a lot of money, so it came as a surprise to everyone when Morin left the university his entire fortune when he passed away, which was approximately $4 million.

Apparently, Morin lived simply and invested well. He stipulated that $100,000 should go to the library where he worked, but the university can use the rest for other purposes.

My Central Oregon reported this story in “Librarian Quietly Saved $4 Million, Left it to School Where He Worked.”

Similar stories come up every few years. For example, grade school teachers have been known to save and leave millions to charity. In another recent case, a janitor left a small fortune to the school where he worked.

What this shows is that anyone who has the desire to do so can make a fortune by living simply and investing money well.

Of course, not everyone wants to live that way. Those who do, however, should not neglect to spend some of their money visiting with an estate planning attorney so they can makes sure the money goes where they want after they pass away. It does not make sense to save all the money only to have it go to someone you do not want to have it.

Reference: My Central Oregon (Sept. 4, 2016) “Librarian Quietly Saved $4 Million, Left it to School Where He Worked.”

September 22, 2016

You Actually Do Need a Will

Some people today suggest that not everyone needs a will because of the many other methods of transferring assets. However, everyone would benefit by at least having a simple will.

There are many different ways to transfer assets after you pass away. You can create all sorts of different trusts. You can title property as joint owners. You can make financial accounts payable on death.

These are all ways to transfer assets that would override any will that you write. Because all these different tools are available, some have suggested that not everyone needs a will today.

In response, however, Forbes notes in “Do You Really Need A Will?” there are still many reasons to have a will.

Anyone with minor children should have a will because, in most jurisdictions, it is the document through which you can appoint the guardian of choice for your children. Other instruments can be used to provide assets for a child, but only a will is available to state who should take care of the child.

Even if you do not have a child, you probably have personal property that is not easily handled in other legal instruments. If you want to have a say in who gets that property, then a will is necessary to do so.

That there are other ways to transfer assets after you pass away is wonderful and an estate planning attorney can help you navigate through the ways to find the best options for your unique circumstances. Call Profit Law Firm to find the best way to transfer assets for your family.

Nevertheless, a will is still necessary for things that cannot be included in those documents. For that reason expect your estate planning attorney to prepare a will for you, even if it is a very simple one.

Reference: Forbes (Aug. 31, 2016) “Do You Really Need A Will?”

September 16, 2016

The Role of an Estate Planning Attorney

There are several options for creating an estate plan on your own. That might lead you to wonder what role an estate planning attorney can play and whether you should hire one.

If you can do something by yourself without taking too much time to do it, you are probably hesitant to hire someone to do the job for you. For example, why bother to hire a handyman to fix a squeaky door when fixing it yourself takes no more than a few minutes and some lubricant?

With many downloadable estate planning forms available today, many people are starting to have the same thoughts about estate planning and wonder why they should hire an estate planning attorney when they can do it themselves.

As the Herald Times Reporter in “Estate planning attorneys are like a QB” suggests, estate planning attorneys still have a vital role to play.

Just like the quarterback of a football team, an estate planning attorney plays a key role in coordinating the plans and executing them. The attorney is the one with the expertise and ability to make sure everything goes according to plan. A Maryland estate planning attorney knows the details of Maryland Law and a DC estate planning attorney knows the details of DC law. You tell the estate planning attorney how you want things to go and the attorney creates a plan that does what you want and follows the law. If you are a resident of DC or Maryland, then Profit Law Firm can help you make a game plan for your estate.

The attorney can even call an audible just like a quarterback. If there are potential problems with what you want to do, then the attorney can advise you and help you come up with a different plan.

You can play football without a quarterback, but it is unadvisable. You can also create an estate plan without an attorney. That too is not advisable.

Reference: Green Bay Press-Gazette (Aug. 13, 2016) “Estate planning attorneys are like a QB”

Suggested Key Words: Estate Planning Attorney

September 15, 2016

A Trust Is Worth It

Setting up a trust can be time-consuming and there is no doubt that even the simplest trust takes some work to create. However, taking the time and making the effort is worth it.

A common question people have when they start to think about estate planning is whether it is worth the effort to create a trust. Just drafting a will is a lot simpler in most cases for the person doing the plan. Creating the trust requires funding the trust, which means that you have to transfer your assets into the trust.

If you just get a will, then you do not have to bother with any of that. However, if you are going to go to the effort of getting an estate plan, then you might as well make the effort of getting the best estate plan you can.

Taking the time to create a trust is almost always worth it as the Green Bay Press-Gazette explains in “Setting up a trust is worth the work.”

The two biggest advantages to a trust are that the trust makes it easier for you to control how your assets are used and distributed after you pass away. Moreover, a trust is much easier for your heirs to deal with after you pass away versus going through probate to sort out a will.

There are other advantages as well, such as keeping the details of your estate unavailable to the general public.

Even though a trust does take more effort to create than a will, the truth is that most of that effort can and should be done by an estate planning attorney. The attorney can make sure everything is set up properly and can normally assist in transferring assets into the trust. If you want to see how a trust might benefit you and your heirs contact Profit Law Firm.

In the end, getting a trust does not have to be that much more work for you.

Reference: Green Bay Press-Gazette (Aug. 29, 2016) “Setting up a trust is worth the work”

September 13, 2016

What You Need to Know About Estate Planning

Estate planning can be a complicated topic to learn. However, most people only need to know the basics and where to find a good attorney.

If you are trying to research estate planning online, you will be forgiven if you get a headache. There are many articles written on the subject, but they often have confusing terminology and long lists of various legal documents most of the public have never heard of. This turns many people off of an important subject that they need to consider.

On the other hand, most people need to know only enough of the basics of estate planning so they know enough to hire a good estate planning attorney.

Recently, Realtor.com published a list of those basics in “7 Things Your Estate Planner Wants You to Know Before You Die,” including:

You are going to die someday so you need to think about it and think about what will happen to your property when you do.
If you die without an estate plan, sorting out your estate will be far more complicated for your family than it needs to be. This is true even if you do not have many assets.
One of the first steps to estate planning is simply to take an inventory of your important assets.
Naming a qualified executor to oversee your estate is one of the best things you can do to make sure everything goes well for your family.
If you own a home, the property tax issues can be complex after you pass away. It is important that you have the advice of a local estate planning attorney.
After you get an estate plan, you need to review it periodically to make sure everything is still up to date.
Should you ever need long term care in a nursing home, you may not need to sell your home to pay for it. However, long-term care planning is complex, so consult with a qualified elder law attorney.

Reference: Realtor.com (Aug. 28, 2016) “7 Things Your Estate Planner Wants You to Know Before You Die”

September 1, 2016

Choosing an Estate Planning Attorney

There are many attorneys who can prepare an estate plan for you, but if you want the best possible plan for your family, then you need to know how to choose the best attorney for you.

As is the case with any other profession, not all attorneys are the same. Attorneys all have different qualifications and specialties. Many attorneys will be more than happy to create an estate plan for you, but that does not mean the quality of the estate plan will be the same.

Just as some doctors are better at performing brain surgery than others, some attorneys are better at estate planning.

The Times Herald recently posted a list of questions to ask attorneys about estate planning that can help you decide which attorney to pick in “Six questions you should ask your estate planning attorney.”

The questions include:

Ask how much of the attorney’s practice is estate planning. This will tell you if the attorney is a specialist or just someone who does estate planning occasionally.
Ask whether the attorney offers comprehensive estate planning or whether an attorney just focuses on a few areas in the field.
Ask the attorney whether they focus on trying to reduce costs or whether their practice is to make money when the estate goes through probate. Sometimes attorneys that seem cheaper upfront are actually looking to make more through probate.
Ask whether the attorney can help you title and transfer your assets to a trust or whether you will have to seek out another professional to do that.
Ask how many hours of continuing education on estate planning the attorney takes. The longer the hours, the more up to date on the law the attorney is likely to be.
Ask the attorney how much you will need to do to make sure the attorney has all the information necessary to create your estate plan. The more information that is provided by you, the more likely you are to get the best estate plan.

When in doubt, ask around and research attorneys online. Check third party attorney directories like Avvo.com and Lawyers.com.

Reference: Times Herald (Aug. 6, 2016) “Six questions you should ask your estate planning attorney.”

Building Legacies that Last Estate Planning and Elder Law

Category: Maryland Estate Planning Attorney