St. Mary’s County, Wills & Trusts Lawyers

For residents of St. Mary’s County, from the historic streets of Leonardtown to the bustling community around Lexington Park, creating a plan for the future is a foundational responsibility. A well-structured estate plan provides peace of mind, protects your loved ones, and ensures your legacy is handled according to your specific intentions. Wills and trusts are two of the most important tools in this process. They serve distinct purposes but often work together to provide a comprehensive shield for your assets and your family.

What Is a Last Will and Testament in Maryland?

A Last Will and Testament is a legally binding document that outlines your instructions for how your property and personal belongings should be divided and distributed upon your death. It is the cornerstone of most estate plans. This document allows you to name a Personal Representative (also known as an executor) to manage the administration of your estate and, for parents, to nominate a guardian to care for minor children.

A will in Maryland can be used to address several key aspects of your estate, including:

• Asset Distribution: Specifies who will receive your property, such as real estate, bank accounts, investments, and personal items.
• Guardian for Minor Children: Allows you to nominate a trusted person to care for your children if they are under the age of 18. This is one of the most important functions of a will for young families.
• Personal Representative Appointment: Names the individual or institution you trust to carry out the terms of your will, pay your final bills, and manage your estate through the probate process.
• Charitable Contributions: Provides a formal way to leave a portion of your estate to charitable organizations you wish to support.
• Funeral and Burial Instructions: You can include your preferences for your final arrangements, which can relieve your family of difficult decisions.

For a will to be legally valid in Maryland, it must satisfy specific requirements. Without a valid will, the state’s intestacy laws will determine how your property is divided, which may not align with your wishes at all. The requirements are:

• The will must be in writing.
• It must be signed by you, the testator.
• Your signature must be witnessed by two credible individuals, who also sign the will in your presence.

What Are Trusts and How Do They Function?

A trust is a legal arrangement where you transfer assets to a trustee, who holds and manages them for the benefit of one or more beneficiaries according to your instructions. Unlike a will, which only takes effect after your death, a trust can be used to manage assets during your lifetime and after you are gone. Trusts offer significant flexibility and control.

The primary benefits of incorporating a trust into your estate plan include:

• Avoiding Probate: Assets held in a trust do not have to go through the public and often lengthy probate process in St. Mary’s County. This allows for a faster and more private transfer to your beneficiaries.
• Asset Protection: Certain types of trusts can shield your assets from creditors, legal judgments, or the irresponsible spending habits of a beneficiary.
• Managing Inheritances: A trust gives you control over how and when assets are distributed. This is particularly useful for providing for minor children, individuals with special needs, or beneficiaries who may not be prepared to manage a large inheritance.
• Tax Planning: Some trusts can be structured to help minimize or eliminate potential estate and inheritance taxes, preserving more of your wealth for your family.

There are two main categories of trusts used in Maryland estate planning:

Revocable Living Trust

This is a popular and flexible estate planning tool. With a revocable trust, you can:

• Alter, amend, or revoke it at any time during your life.
• Maintain complete control over the assets held within the trust.
• Serve as the initial trustee, managing your own assets as you always have.
• Designate a successor trustee to take over management if you become incapacitated or pass away.
• Ensure that upon your death, the assets are distributed to your beneficiaries without going through probate.

Irrevocable Trust

An irrevocable trust cannot be easily changed or revoked once it is established. This transfer of control is done for specific and powerful reasons.

• It provides greater protection for assets, as they are no longer legally considered your property.
• It is a key tool for more advanced planning goals, such as minimizing estate taxes for high-net-worth individuals.
• It can be designed for specific purposes, such as creating a Special Needs Trust to provide for a disabled loved one without jeopardizing their government benefits, or for Medicaid planning to protect assets from long-term care costs.

Wills vs. Trusts: What Are the Key Differences?

While both wills and trusts are used to direct the transfer of assets, they operate differently and offer distinct advantages. For many families, the best approach involves using both.

Guardianship for Minor Children

A will is the only document where you can nominate a legal guardian for your minor children. A trust cannot serve this function. If you have children under 18, having a will is absolutely essential to ensure they are cared for by someone you choose.

Privacy

When a will is submitted to the St. Mary’s County Register of Wills for probate, it becomes a public record. This means that the details of your estate, including your assets and beneficiaries, are accessible to anyone. A trust, by contrast, is a private document. The administration occurs outside of the court system, keeping your family’s financial affairs confidential.

The Probate Process

Assets passed down through a will must go through the court-supervised probate process, which can be time-consuming and costly. A properly funded trust completely bypasses probate, allowing your beneficiaries to receive their inheritance much more quickly and with less administrative hassle.

Control Over Asset Distribution

A trust offers far more control and flexibility over how your assets are distributed. For instance, you can structure a trust to distribute funds to a child at certain ages or life milestones, like graduating from college. You can also create a trust to provide lifetime support for a spouse or a beneficiary with special needs. A will generally results in an outright distribution of assets.

Asset Protection

A will offers no protection for your assets against creditors or lawsuits, either for your estate or for your beneficiaries. A properly structured irrevocable trust, however, can provide significant protection, ensuring that the assets you leave behind are shielded for your loved ones.

Do I Need a Will, a Trust, or Both?

The answer depends entirely on your personal circumstances, your assets, and your goals for your family.

• You likely need a will if: You have minor children, as it is the only way to nominate their guardian. Even if you have trust, you will still need a will.
• You likely need a trust if: You own real estate (especially in more than one state), have a significant level of assets, wish to keep your estate private, want to protect assets for your beneficiaries, or want to make the transfer of your estate as seamless as possible.
• Many people need both: For many residents in St. Mary’s County, the most effective estate plan involves a revocable living trust as the primary tool for asset management and distribution, combined with a special type of will called a “pour-over will.” This will name a guardian for minor children and ensures that any assets not properly transferred into the trust during your lifetime are “poured over” into it upon your death.

Beyond Wills and Trusts: Essential Components of a Comprehensive Plan

A complete estate plan addresses more than just what happens after you pass away. It also includes vital legal tools to protect you and your assets in the event you become incapacitated and unable to make decisions for yourself.

Financial Power of Attorney

A durable power of attorney for finances allows you to appoint a trusted individual, known as your agent, to manage your financial affairs if you become unable to do so. Your agent can pay bills, manage investments, and handle real estate transactions on your behalf. Without this document, your family might have to endure an expensive and public court proceeding to have a guardian appointed to manage your finances.

Healthcare Power of Attorney

This document lets you appoint an agent to make medical decisions for you if you are unable to communicate your wishes. This ensures that someone you trust, who knows your values, is in charge of your medical care, rather than leaving those personal decisions to a court or medical professionals.

Advance Medical Directive (Living Will)

Working alongside a healthcare power of attorney, an Advance Medical Directive outlines your preferences for medical treatment in end-of-life situations. It allows you to specify your wishes regarding life-sustaining procedures, such as ventilators or feeding tubes, and your preferences for pain management. This document provides immense clarity and relieves your loved ones of an emotional burden during a difficult time.

Special Considerations for St. Mary’s County Residents

The unique character of St. Mary’s County, with its deep agricultural roots and significant military presence, presents specific planning needs that a generic plan might not address.

Planning for Military Service Members

Naval Air Station Patuxent River is a cornerstone of our community. Active-duty military personnel and their families face unique challenges, including deployments and frequent relocations, that make having a solid estate plan imperative. Planning should address:

• Ensuring Powers of Attorney and wills are up-to-date and accessible during deployment.
• Clearly nominating temporary and permanent guardians for minor children.
• Properly integrating military benefits like the Servicemembers’ Group Life Insurance (SGLI) and Survivor Benefit Plan (SBP) into the overall estate plan.

Agricultural and Farm Planning

Farming is part of St. Mary’s County’s heritage. Families with farms or significant land holdings require specialized planning to preserve their legacy. This can involve using trusts to pass the farm to the next generation without it being sold to cover estate taxes and exploring tax provisions like special use valuation.

Business Succession Planning

For the many small and family-owned businesses in St. Mary’s County, estate planning must include a strategy for the company’s future. A business succession plan creates a clear path for transferring ownership and management, using tools like buy-sell agreements and key person insurance to ensure a smooth transition.

When Should I Review and Update My Estate Plan?

Estate planning is not a one-time event. It is a process that should evolve with your life. It is good practice to review your will, trust, and other documents every three to five years, or whenever a major life event occurs.

Consider updating your plan after:

• Marriage, divorce, or remarriage.
• The birth or adoption of a child or grandchild.
• The death of a spouse, beneficiary, or nominated fiduciary (like an executor or trustee).
• A significant change in your financial situation, such as receiving an inheritance or selling a business.
• A move to a different state, as laws can vary.
• Changes in state or federal tax laws.

Secure Your Legacy with Our St. Mary’s County Wills and Trusts Attorneys

Creating a comprehensive estate plan is one of the most meaningful actions you can take to protect your family and secure your assets. It is a process that involves deeply personal and financial matters, and having knowledgeable guidance is invaluable. The Baddour Law Firm is committed to helping individuals and families throughout St. Mary’s County build estate plans that are tailored to their unique circumstances and goals. We take the time to listen to your concerns and craft a plan that provides security and confidence for the future. 

To begin the conversation about your estate planning needs, contact us at (301) 494-2108 today to schedule a confidential consultation.