Creating an Estate Plan for High Asset Individuals in Maryland

Introduction: High Asset Individuals Often Have Unique Concerns

Individuals who pass away with substantial assets tend to have unique concerns when it comes to estate planning. Developing a workable estate plan is a difficult task, no matter the amount of assets held by the individual or couple. When heavy assets are involved, an estate plan can rapidly become quite complex, as many contingencies, goals, and variables need to be accounted for. Tax laws need to be carefully scrutinized so as to maximize the value of an estate, wills need to be carefully written in order to prevent possible challenges, and so forth. In this post, we will provide a few general suggestions for high asset individuals as they go about creating their estate plan here in Maryland.

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Appoint Personal Representatives Who are Trustworthy

Whenever a will is drafted, a personal representative must be appointed. On top of this appointment, back up or reserve personal representatives also must be selected. The back up or reserve personal representatives will step in and act as personal representative in the event that the primary appointment isn’t available or willing to serve when the testator passes away. It is imperative for high asset Marylanders to select personal representatives who are very trustworthy and reliable; the importance of this task cannot be overstated.  

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When heavy assets are involved, the likelihood of litigation goes up. Personal representatives are akin to trustees of trusts: the representative carries out the instructions of the will and holds an obligation to stay true to the intentions of the testator. If the personal representative isn’t trustworthy, this could lead to very costly corruption. High asset estates are also likely to see challenges from certain parties, and trustworthy personal representatives are needed to ensure that the intentions of the testator prevail over any misguided challenges.  

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Select Trustees Who are Trustworthy

What we’ve said for personal representatives can also be said for trustees: whenever high asset individuals establish trusts as part of their estate plan – and this will be the case in the majority of instances – be sure to select trustees who are extremely reliable and trustworthy. Trustees manage trusts and ensure that the instructions are carried out correctly; they hold a fiduciary obligation and must fulfill their responsibilities or else face severe penalties. But, even with the possibility of penalty hanging in the background, trustees can be corrupted, and the probability of corruption is certainly higher in cases involving heavy assets.  

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Limit the Possibility of Viable Challenges to Your Will

As mentioned, high asset estates tend to see challenges more frequently. The possibility of viable challenges can be minimized by doing certain things. For example, one way to minimize potential challenges is to eliminate ambiguity within your will. This is where the value of a meticulous estate planning attorney becomes very clear. The more ambiguity your will contains – and the opportunities for ambiguity throughout a will are quite numerous – the more likely your estate is to see challenges when your will becomes scrutinized following your passing. Another way to minimize challenges is to ensure that all formalities with respect to your will are fully observed. This includes making certain that the will is witnessed properly and has genuine signatures from all parties.

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Donate to Charitable Causes via Separate Trust

Many, if not most, high asset individuals want to donate a sizable amount of wealth to charitable causes. This is a very noble goal, and it is one which should be approached with the requisite level of care. The best way to donate to charitable causes is to establish a separate trust specifically for that purpose. The trust can be established within your will, and then funded with estate assets. The trust can include all the instructions needed to ensure that the funds are used for your desired purposes. If, for instance, you want the trust to make multiple contributions to distinct charitable foundations, this can be achieved via the trust documents. And, if you want to the donated funds to be used only for certain charitable goals, this can also be achieved via the trust documents as well.

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Contact the Murphy Law Firm for More Information

If you’d like to learn more about creating an estate plan for estates with heavy assets, developing a viable last will and testament in Maryland, minimizing challenges to a Maryland will, or any other related estate planning topic, contact one of the estate planning attorneys at the Murphy Law Firm today by calling 240-219-1187.

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