California, MD Wills and Trusts Lawyers

Wills and trusts are two important estate planning tools that serve distinct purposes but often work together to provide comprehensive protection for your assets and provide for your loved ones. While a will outlines how your assets should be distributed after your passing, a trust can offer greater flexibility, and privacy, and even avoid the probate process altogether. Understanding the differences between these tools and how they can be used to your advantage is essential to making informed decisions about your estate. 

At the Baddour Law Firm, we understand that estate planning is not just about documents. It is about protecting your family, your assets, and your future. Whether you need a will, a trust, or a combination of various estate planning tools, our experienced California, MD wills and trusts lawyers can guide you through the process with personalized solutions tailored to your unique goals. We can help you create a solid plan that ensures your wishes are carried out and your loved ones are taken care of.

Call us today at 301-494-2108 to schedule a consultation with one of our highly qualified California, MD wills and trusts lawyers. 

All You Need to Know about Wills in Maryland

A will, also referred to as a last will and testament, is a legally binding document that outlines how your assets and personal belongings should be divided and distributed after your passing. It allows you to specify the parties that can inherit your property, designate a guardian for your minor children, and name an executor or personal representative to manage your estate. It plays an important role in ensuring that your final wishes are carried out and your loved ones are provided for exactly according to your instructions. 

What a Will Can Include

A will in Maryland can cover various aspects of your estate, which can include:

• Asset Distribution: Specifies who will receive your property, including real estate, bank accounts, personal belongings, and investments.
• Guardian for Minor Children: Allows you to designate a trusted person to care for your children if they are under the age of 18.
• Executor Appointment: Names the individual responsible for carrying out the terms of your will, handling your estate, and settling debts.
• Charitable Contributions: Provides the opportunity to leave a portion of your estate to charities or organizations you support.
• Funeral and Burial Instructions: Allows you to include your preferences for end-of-life arrangements.

Requirements for a Valid Will in Maryland

For a last will and testament to be legally enforceable in Maryland, it must meet the following requirements:

• Age and Mental Capacity: You must be at least 18 years old and of sound mind.
• Written Document: The will must be in writing, whether typed or handwritten. Maryland does not recognize oral wills.
• Signature: You must sign the will at the end of the document. 
• Witnesses: You must sign the will in the presence of at least two credible witnesses, who must also sign the document. Witnesses cannot be beneficiaries of the will.
• No Undue Influence or Fraud: The will must be created voluntarily, without coercion, fraud, or pressure from others.

All You Need to Know about Trusts in Maryland

A trust is a legal arrangement that allows you to transfer your assets and belongings to a trustee, who can manage and distribute them according to your instructions. Trusts serve a variety of purposes, from avoiding probate to protecting assets for future generations. Unlike a will, which only takes effect after your death, a trust can be used to manage your assets during your lifetime as well as after your passing.

The key benefits of a trust include: 

• Avoiding Probate: Under Maryland law, assets held in a trust do not go through probate, which allows for a quicker and more private transfer to beneficiaries.
• Asset Protection: Certain trusts can shield assets from creditors, lawsuits, or irresponsible spending by beneficiaries.
• Managing Inheritance for Beneficiaries: A trust allows you to control how and when assets are distributed, which can be useful for minor children, individuals with special needs, or beneficiaries who might not be financially responsible.
• Tax Benefits: Some types of trusts can help minimize estate taxes, preserving more of your wealth for your loved ones.

Revocable vs. Irrevocable Trusts in Maryland

Revocable Trust (Living Trust)

• You can alter, modify, or revoke it at any time.
• Allows you to retain control over your assets during your lifetime.
• Helps avoid probate, but does not provide strong asset protection from creditors.
• Upon your death, the trust becomes irrevocable and assets are distributed according to the trust terms.

Irrevocable Trust

• Cannot be changed or revoked once established, except under rare circumstances.
• Provides greater asset protection since assets no longer legally belong to you.
• Can offer tax advantages, reducing estate taxes for high-net-worth individuals.
• Can be used for specific purposes, such as special needs trusts, charitable trusts, or Medicaid planning.

Key Differences between a Will and a Trust

Guardianship for Minor Children 

A will allows you to designate a trusted individual as the legal guardian for your minor children. A trust, on the other hand, does not serve this function. If you have children under the age of 18, a will is essential to ensure their care is assigned to someone you trust.

Privacy 

A will becomes a public record once it goes through probate, which means anyone can access it. A trust, on the other hand, remains private and does not need to go through the court system, keeping your financial affairs confidential.

Probate 

Assets distributed through a will must go through probate, which can be time-consuming and costly. A trust bypasses probate completely and allows your beneficiaries to receive their inheritance quickly.

Control over Asset Distribution 

A trust allows for structured distributions of your assets, such as setting aside funds for education or providing lifetime support for a beneficiary. A will, in contrast, might not be an effective tool to achieve these goals. 

Asset Protection 

A properly structured trust can protect your assets from creditors, lawsuits, and irresponsible spending by beneficiaries, while a will does not offer this level of protection.

Which One Do You Need? 

If you have minor children, own property, or want to ensure a seamless transfer of your assets, you might need a will as well as a trust. A will ensures your personal wishes – such as guardianship for children – are honored, while a trust provides privacy, asset protection, and more control over how your estate is handled.

At the Baddour Law Firm, our experienced California, MD wills and trusts lawyers can evaluate your unique circumstances and recommend the best approach for your future. Whether you need a will, trust, or a combination of various estate planning tools, we can create a customized plan tailored to your goals. 

Apart from a Will and a Trust, What Other Estate Planning Tools Do I Need? 

Estate planning is about more than just deciding who will inherit your assets. It is about planning for your future, protecting your loved ones, and ensuring your wishes are honored in every aspect of your life. A comprehensive estate plan should include not just a will and a trust, but several other legal tools that can help manage your affairs if you become incapacitated and ensure your healthcare and financial decisions are handled according to your wishes. These include: 

Financial Power of Attorney

A financial power of attorney allows you to designate a trusted person to manage your financial affairs if you become incapacitated. This person, who is commonly referred to as your agent, can:

• Pay bills and manage bank accounts
• Handle investments and real estate transactions
• File taxes and manage other financial matters

Without a financial POA, your family might have to go through an expensive and time-consuming court process to gain authority over your finances.

Healthcare Power of Attorney

A healthcare power of attorney lets you appoint someone to make medical and healthcare decisions on your behalf if you are unable to communicate. This ensures that a trusted individual, rather than the court or medical professionals, will be responsible for making important healthcare decisions that align with your values and preferences.

Advance Healthcare Directive (Living Will)

A living will is a legal document that outlines your wishes for medical care in situations where you are unable to make decisions yourself, such as being in a coma or suffering from a terminal illness. It allows you to specify:

• Whether you want life-sustaining treatment such as ventilators or feeding tubes
• Your preferences for pain management and palliative care
• Organ donation preferences

By having a living will in place, you can relieve your loved ones of the burden of making difficult medical decisions during emotional times.

Beneficiary Designations

Certain assets such as retirement accounts (401(k) accounts and IRAs), life insurance policies, and payable-on-death bank accounts allow you to name beneficiaries. Ensuring these designations are up to date is crucial, as they override any instructions in your will.

Medicaid and Long-Term Care Planning

If you might need nursing home care or assisted living in the future, Medicaid planning can help protect your assets while ensuring you qualify for government benefits. Without proper planning, long-term care costs can quickly deplete your estate. Common strategies include:

• Setting up an irrevocable trust to protect your assets.
• Transferring assets to your loved ones following Medicaid’s look-back rules.
• Structuring your income and resources to meet eligibility requirements.

Guardianship Designations

If you have minor children or dependents with special needs, you can name a legal guardian in your will. This ensures that if something happens to you, someone you trust will take care of them instead of leaving the decision up to the courts.

Business Succession Planning

If you own a business, a business succession plan ensures a smooth transition in the event of your retirement, disability, or passing. This might include:

• A buy-sell agreement
• Naming a successor
• Structuring ownership transfers to minimize tax consequences

Build a Comprehensive Estate Plan with the Baddour Law Firm

At the Baddour Law Firm, we know that estate planning is a lot more than just distributing assets. It is about protecting your future, your loved ones, and your legacy. It is why we take a holistic approach to estate planning and ensure that every aspect of your future is carefully planned for. Whether you need a will, trust, powers of attorney or long-term care planning, we can create a plan that meets your unique needs and goals. 

Call our firm today at 301-494-2108 or fill out our online contact form to schedule a consultation with one of our trusted California, MD wills and trusts lawyers.