Estate Planning

Blended families face unique challenges in estate planning due to the presence of natural children, stepchildren, and half-siblings. Trusts are especially valuable as they allow parents to control asset distribution privately and avoid probate. Well-drafted wills complement trusts by providing clear instructions that prevent confusion or disputes, ensuring assets are distributed according to the creator’s wishes rather than default intestacy laws.

In Maryland, the type of deed used for property ownership can have significant consequences in estate planning. This post compares normal title deeds—which require probate for transfer upon death—with life estate deeds, which automatically pass to remainder beneficiaries without probate.

This post explores the concept of fee simple determinable—a type of defeasible estate commonly used in estate planning to place conditional limits on property ownership. Unlike fee simple absolute, this interest automatically ends and reverts to a specified party if a condition is violated or a time frame lapses. By including precise grant language, Marylanders can ensure that real property is used for a specific purpose or transfers automatically under designated conditions.

The Mergner v. Estate of Mergner case underscores the binding nature of irrevocable trusts and marital property agreements in Maryland estate planning. The wife, who accepted nearly $450,000 in distributions from an irrevocable trust established by her husband, later sought to reclaim her right to an elective share despite having waived it in a marital property agreement.

Powers of Attorney (POAs) are vital tools in estate planning, allowing a designated agent (or attorney-in-fact) to act on behalf of a principal in financial, medical, or business matters. In Maryland, the statutory form POA—specifically the personal financial POA—is a standardized legal document carrying the full weight of state law. This form offers a streamlined, comprehensive way to grant authority while ensuring both principals and agents understand their rights and responsibilities.

Power of Attorney (POA) arrangements are vital legal tools that allow one person (the principal) to delegate decision-making authority to another (the agent or attorney-in-fact). Maryland’s General and Limited POA Act, modeled on the Uniform Power of Attorney Act but with unique state provisions, governs these arrangements.

Understanding Maryland’s estate tax is crucial for effective estate planning. As of May 2025, the estate tax exemption thresholds stand at $5 million for individuals and $10 million for married couples, with graduated rates up to 16%. Proposed reductions to these thresholds were recently defeated, preserving the current structure for now. Maryland’s estate tax is separate from its unique inheritance tax, which beneficiaries pay.

The 2018 case of Ibru v. Ibru illustrates how critical procedural accuracy is in estate litigation. This Maryland case revolved around whether a circuit court had subject matter jurisdiction to hear claims related to a power of attorney, ultimately hinging on the distinction between estate matters and fraud claims.

Understanding the different types of bank accounts—individual, joint, and trust—is essential for effective estate planning in Maryland. This blog explores how each account type functions and how Powers of Attorney (POAs) can be used strategically.

In the Matter of Watkins (2017) marks Maryland’s first application of the unclean hands doctrine in an estate case, where a surviving spouse sought an elective share after allegedly procuring a marriage through undue influence. The appellate court found the doctrine applicable, barring the claim as it was tied directly to improper conduct. This case illustrates how equity principles can override statutory rights when fraud or manipulation is involved.

Transferring property in Maryland, whether by adding a co-owner or transferring full ownership, is a complex process requiring accurate preparation of a new deed. Key steps include preparing the deed, notarization, filing a lien certificate, and paying transfer and recording fees. Consulting an expert is highly recommended to avoid costly mistakes.

Maryland law protects surviving spouses from disinheritance through the elective share, allowing them to claim a portion of the augmented estate, which includes probate and non-probate assets. This right ensures fairness, but spouses must act within strict deadlines to claim it. The amount varies based on whether the decedent left surviving children or not.

This blog explores key distinctions between types of property ownership: fee simple absolute, fee simple subject to condition subsequent, and fee simple determinable. Each form affects control, transferability, and estate planning strategies. Understanding these distinctions is essential for effective property and estate planning in Maryland.

Life estate interests grant property rights for the duration of a holder’s life, with future ownership predetermined. They offer benefits like avoiding probate and enabling multi-beneficiary planning, often within families. However, they can carry tax implications and are generally irrevocable, so careful planning is crucial.

In Maryland, a will can be contested by an interested party, such as a beneficiary or heir, if there are legitimate grounds. Common reasons for contesting a will include lack of testamentary capacity, undue influence, fraud, or failure to meet legal requirements. The challenge must be filed within 6 months of a personal representative being appointed. The process involves submitting a formal petition to the Orphan’s Court, presenting evidence, and possibly appealing the decision if the challenge is unsuccessful.

Selecting a personal representative (PR) for your will is crucial. The PR ensures the will’s terms are carried out, managing debts and distributing assets. Trust, dependability, and competency are essential qualities in a PR. It's also important to consider how the PR’s relationship with other beneficiaries might affect the process. Careful selection is key to avoiding issues during estate administration.