Do I need a Will if I have a Revocable Trust?

Do I need a Will if I have a Revocable Trust?

Authored By: Adam Rubin, Esq.

            Many individuals benefit from a Revocable Trust as part of their Estate Plans. A Revocable Trust, that includes assets that have been transferred for the Trust, sets the stage for a smoother process following a loved one’s passing. A Revocable Trust enables a decedent’s wishes to be carried out in a private and usually expedient manner, thereby eliminating an often extended probate process.

            So why have a will?

            For most folks, a will is still a necessary ingredient in a sound Estate Plan. Even with vigilant attention, certain assets that a decedent may have wanted to be in her trust may not be properly transferred to the trust during her lifetime.

Paperwork for a bank account that a decedent wanted in her trust could have been left out of the files she brought in during Estate Planning meetings. After executing the trust, newly acquired stocks, bonds, or other assets may not be transferred into the trust due to the “hustle and bustle” of life. It’s the rare person who would think, “Oh, I just invested in this new mutual fund and now I must transfer it into my trust so that it does not go into probate!”

            Additionally, if the decedent were tragically taken from this world in an accident, a settlement or judgment from a wrongful death action would “payout” to the Probate Estate. Naturally, there is no way this money could be placed into a trust before the decedent’s unforeseen accident.

            A “pour over” will enable any assets that were not placed into a Revocable Trust during life, for any of the reasons mentioned above or otherwise, “pour over” into the trust after one’s passing. A Probate Estate will exist initially, but the process should be fairly quick as the assets will simply transfer into the trust after some of the early technical pieces of the probate process come to a close. Typically, there is no way to completely avoid probate, but a “pour over” will can make the process as painless as possible.

            Contrary to popular belief, nixing a will as part of an Estate Plan is not a dollars and cents saver either. If all of the terms in a standard will were included in a Revocable Trust, the cost of the “supped-up trust” would equal that of a standard will and typical Revocable Trust combined. Not having a will may leave a person penny wise, but pound foolish.

Contact an Attorney at The Shump Law Firm, PC, to discuss how the combination of a “pour over” will and Revocable Trust may be appropriate for your Estate Plan. Please call (410) 832.8865 to schedule a consultation today.

Disclaimer

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Estate Planning for Young Families with Children

Estate Planning for Young Families with Children

Authored By: Adam Rubin, Esq.

            You may think that Estate Planning is reserved for the 40-plus crowd with multiple assets and thick stock portfolios.

            Think again.

            Several Estate Planning tools are relevant for all young families with children and several other tools may be important, depending on your financial situation.

        Advance Directive: The Advance Directive is a document that allows you to (1) choose a person to make medical decisions for you if you are unable to and (2) capture, in writing, your choice of the treatment you would either want or refuse in various end-of-life situations. An Advance Directive will put your mind at ease and reduce the stress on loved ones who are functioning under very challenging circumstances. It helps to remove the “guess-work” from making decisions during medical crises. The Maryland Office of the Attorney General has provided an Advance Directive Form which is recognized throughout the State. This form may be used as an initial template and then tailored for your unique needs.

       Will: A will has several important functions. First, you can choose who will receive money or personal items in the unfortunate event of your passing. Secondly, and often more importantly for young families, a will can include a designation of the guardian who will take care of your children if the worst happens. An alternative Guardian can be designated in the even that your first choice is unable or unwilling to serve as Guardian for your children. Having a Guardian in place can bring a high level of peace of mind to parents who want to ensure that their children will be taken care of in the event the unspeakable happens.

       Power of Attorney: The Power of Attorney document enables another person to act for you in financial matters, with the option for other types of powers as well. The Power of Attorney can be solely limited to financial powers, or can include powers such as the ability to sign tax returns, enter into contracts, give gifts, and/or have powers over a revocable (living) trust. In 2010, Maryland adopted a Statutory Power of Attorney Form. This form may be used as an initial template and then tailored to your unique needs.

•      Advantages of a Power of Attorney:
• Inexpensive way to appoint an agent to have financial powers in the event that you are unable take care of your own finances (e.g. due to disability).
•  Can be restricted to one transaction/event or can be granted for a period of time.
•  Excellent replacement for a guardianship in many cases, reducing the financial and time related resources that would be needed for a guardianship appointment.

      The above documents are essential for all young families with children, and can prevent unnecessary hardship and pain that can arise without proper planning. You will have peace of mind as you carry a “toolbox” of Estate Planning documents for your growing and developing family. If you and your spouse have begun to accumulate a significant amount of assets, other Estate Planning tools, such as a revocable (living) trust, may be pertinent as well.

     Contact an Attorney at The Shump Law Firm, PC, to discuss setting up or updating your Estate Plan. Please call (410) 832.8865 to schedule a consultation today.

Disclaimer

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

What is a Personal Representative? What does a Personal Representative do?

What is a Personal Representative? What does a Personal Representative do?

Authored By: Adam Rubin, Esq.

      A Personal Representative is the person who “stands in the deceased’s shoes” in Maryland. The Personal Representative serves as the manager of the deceased person’s estate, including managing various types of assets that may be in the deceased’s estate (e.g. a house, automobiles, bank accounts, stocks, interest in a business, etc.). 

      Some duties of the Personal Representative include:
          • Taking possession of assets and marshaling assets
          • Generating and filing an inventory of the assets in the estate
          • Preparing and filing an accounting(s)
          • Paying creditors, taxes, and costs of administration 

      Serving as a Personal Representative is an important role with responsibilities. Taking on the role of Personal Representative is a kindness to the deceased. Serving in the role effectively can prevent many headaches among heirs and other inheritors under a will.

      Contact an Attorney at The Shump Law Firm, PC, if you are a Personal Representative or believe that you may become a Personal Representative for a friend’s or loved one’s estate. Please call (410) 832.8865 to schedule a consultation today.


Disclaimer

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.