Frederick MD Estate Planning Law Blog

Frequently, when a relative passes away in Maryland and elsewhere, family members are not sure how to handle distribution of some of the assets. All kinds of digital assets, including online pictures, bank data, high-tech phones, and more are a lot to sift through. Dividing up this property can place added stress on relatives, already mourning the loss of a loved one, when a will or other estate planning document does not detail what is to occur.

The family pet is often an overlooked problem. Many people are including estate planning wishes concerning a beloved animal, including such things as veterinary care and end of life decisions. Relatives might disagree about how to care for a pet, and it could end up in the pound or going to that one relative who does not hold a special fondness for your pet absent arrangements made in advance.

Planning for how your assets will be treated after you pass away is an understandably tricky proposition. That is, it is not always easy to determine how they should be divided among those left behind, which may include a spouse, children, parents and other family members. For married Maryland residents, another wrinkle may be added when it comes to making plans for estate administration.

An article that recently appeared on Forbes' online website expounded on the issue. In one of the examples mentioned, a married couple in their mid-50s could not reach an agreement about who should be in charge of their living trusts. The husband argued that it should be their oldest son, while the wife said that it should instead be their youngest daughter. Ultimately, they were unable to reach an agreement and even sought a divorce, forcing both to start over with their estate planning.

One important aspect of estate planning is deciding whether or not to establish a trust. A trust can help not only with managing the assets of the estate, but can also reduce the impact of estate taxes and save beneficiaries from having to endure the probate process. Yet a trust can be a legally complicated instrument and before establishing one, it is important for residents in Maryland and elsewhere to understand the potential consequences of different types of trusts.

There are primarily two types of trusts: a living trust and a testamentary trust. A living trust is created during one's life, while a testamentary trust is created through one's will. Both can be used to avoid probate, but there are tax consequences associated with each depending upon not only how the trust is set up but also who is named as the trustee.

When people face the end of their lives, they may find themselves unable to dictate the terms of their medical treatment. This may be because they are either completely incapacitated due to an illness or simply unable to communicate. To avoid this kind of situation, it may be beneficial to draw up a living will.

A living will is a document that outlines when medical treatment should be withheld in the event of a terminal illness or severe disability, and it is something that all Maryland residents may do well to consider. It can help prevent long-term mental and financial anguish to one's family while also allowing someone to die in a dignified manner. However, it can also help resolve disagreements between physicians and the family.