SECURE Act Proposed Regs provide clarity (and some surprises) regarding estate planning for retirement accounts
As we discussed in a previous blog post, the SECURE Act of 2019 drastically changed the landscape for how most individuals and trusts inherit retirement accounts. However, while laws provide a general framework, federal regulations often give us the details we need to give clients practical advice to put their plans into action. Recent proposed […]
IRS ANNOUNCES INCREASED ESTATE AND GIFT TAX EXEMPTION FOR 2023
The IRS has announced the new gift exclusion and estate and gift tax exemptions for 2023. Starting January 1, an individual may give up to $17,000 per year, per donee (up from $16,000) without having an obligation to report that gift to the IRS. The unified estate and gift tax exclusion will increase to $12,920,000 […]
TESTAMENTARY TRUSTS: Naming a Trust under a Will as a Beneficiary of Retirement Accounts
Many estate plans establish trusts for children, grandchildren, or other beneficiaries. These are known as testamentary trusts, or trusts established at your death (as opposed to an inter vivos trust, or a trust established during your lifetime). However, assets that pass outside of the Will – like retirement accounts or life insurance proceeds – will […]
LEGISLATIVE UPDATE: Effect of the New Electronic Execution of Wills Law
As mentioned in our previous post, the Maryland legislature enacted a law that allows for electronic execution of Wills. While this law is technically in effect, we have not yet found a cost-effective way to implement this for our clients. While we continue to offer virtual meetings to our clients, for the time being, estate […]
LEGISLATIVE UPDATE: Electronic Execution of Wills
While electronic execution of Wills has technically been available in Maryland since October 1, 2021, the prior law was written in a way to be impractical. This session, the Maryland General Assembly unanimously passed HB576/SB36 which greatly expands the ability for Marylanders to sign their estate planning documents remotely. Our firm looks forward to utilizing […]
IS YOUR ONLY PROBATE ASSET A CAR? – How to avoid the need to open a small estate
Because of the simplification of estate tax planning and the rise in probate avoidance techniques, we are finding that, for many, the only asset that is governed by a decedent’s Will is their car. Traditionally, the decedent’s family would have to open a small estate to transfer title to the vehicle. However, this can […]
NEW MARYLAND SPOUSAL ELECTION LAW – What is the spousal election, and what’s changing?
1. WHAT IS THE SPOUSAL ELECTION? We enjoy considerable freedom in choosing who should and should not benefit from our property at death. We can disinherit children and grandchildren and instead benefit charities, friends, or any other individual or organization. However, the American legal system has historically protected widows and widowers by ensuring that they […]
TRUSTS FOR DESCENDANTS – Are They Right for Me?
Most of our estate planning clients want the same thing: for their assets to pass to the people they love. For our clients with children, this typically means they ultimately want to benefit their descendants (i.e., their children, grandchildren, great-grandchildren, and so on). This article discusses one of the fundamental ways that you can accomplish […]