Planning your estate is a vital step in securing your family’s future. At Gershberg & Associates, LLC, located in Owings Mills, MD, near Baltimore, we assist you in creating comprehensive wills and trusts that reflect your wishes and protect your assets.
Understanding Wills and Trusts
Wills are legal documents specifying how your assets are distributed after your death. They allow you to:
- Designate beneficiaries for your property.
- Appoint guardians for minor children.
- Specify funeral and burial arrangements.
To be valid In Maryland, will must be in writing, signed by you, and witnessed by two credible individuals.
Trusts are arrangements where a trustee holds and manages assets on behalf of beneficiaries. Trusts can be established during your lifetime (living trusts) or upon your death (testamentary trusts). They offer benefits such as:
- Avoiding probate, which can save time and costs.
- Managing assets if you become incapacitated.
- Potentially reducing estate and inheritance taxes.
Explore Maryland’s detailed guide on living trusts.
Benefits of Estate Planning
Creating wills and trusts offers many advantages:
- Control Over Asset Distribution: Ensure your assets go to your chosen beneficiaries.
- Protection for Minor Children: Appoint guardians to care for your children if you’re no longer able.
- Minimizing Taxes: Strategically plan to reduce estate and inheritance taxes.
- Avoiding Probate: Trusts can help your estate bypass the probate process, maintaining privacy and reducing legal expenses.
Common Mistakes in Estate Planning
Avoiding common pitfalls is crucial. Some frequent mistakes include:
- Not Updating Your Plan: Life changes like marriage, divorce, or the birth of a child necessitate updates.
- Overlooking Beneficiary Designations: Ensure retirement accounts and life insurance policies have current beneficiaries.
- Failing to Fund a Trust: Simply creating a trust isn’t enough; you must transfer assets into it for it to work.
Check out our blog post, “Common Mistakes in Estate Planning – Part V”.
Choosing the Right Executor and Trustee
Selecting the right individuals to manage your estate and trusts is essential. Consider these factors:
- Trustworthiness: Choose someone reliable and honest.
- Organizational Skills: They should be capable of managing financial matters efficiently.
- Willingness to Serve: Ensure they’re ready to take on the responsibilities involved.
Learn more by reading our blog post, “How Do I Trust Thee…Part I”:
Maryland Estate and Inheritance Taxes
Understanding Maryland’s tax laws is critical in estate planning. Maryland imposes both estate and inheritance taxes:
- Estate Tax: Applied if the estate’s value exceeds the exemption amount.
- Inheritance Tax: Levied on property passing to certain beneficiaries.
Visit the Maryland Comptroller’s site for more information.
Let Gershberg & Associates, LLC Help You
Creating a will or trust ensures your loved ones are protected and your wishes are honored. Contact Gershberg & Associates, LLC today to get started. Call us at 410-654-3850 or schedule a consultation today.
Serving Owings Mills and Surrounding Areas
Located in Owings Mills, near Baltimore MD, Gershberg & Associates, LLC proudly serves clients in:
- Columbia
- Eldersburg
- Ellicott City
- Towson
- Randallstown
- All of Baltimore County
Let our experienced and trusted wills and trusts attorney assist you in planning for a secure future.
