4 Common Mistakes to Avoid in Maryland Estate Planning

 Posted on December 09, 2024 in Estate Planning

Estate planning is an important way to ensure that your wishes will be carried out when you pass away. You can decide who should get your property, raise your children, and manage your finances when you are no longer able to do so.  

While people tend to know about the most common aspects of an estate plan - having a will or trust - many make mistakes during the estate planning process that can cause confusion, increase costs, or prevent your wishes from being followed. For help creating a thorough plan for the future that anticipates and addresses various scenarios, speak with a qualified Silver Spring, MD estate planning lawyer.

Not Updating Your Estate Plan

There is a common misconception that once you have an estate plan in place, you do not need to change it. However, major life events like marriage, divorce, having children, or buying property in Maryland can change your estate planning needs. If you do not update your estate plan after any of these events, your will or trust might not reflect your wishes. 

For example, if you get divorced and later remarried, but forget to update your will, your ex could inherit your property and your new spouse might be left with nothing. It is important to regularly review and update your estate plan, particularly after experiencing significant changes in your life.

Forgetting to Name Guardians for Minor Children

If you are a parent with children who are minors, figuring out who would take care of them if something happens to you is one of the most important decisions you need to make. In the state of Maryland, if you fail to name a guardian for your children in your will, the courts decide who will take care of them. 

They might not end up in the care of someone you would have chosen. It is best to think about who you trust for this important potential role in your children’s lives. Once you have decided that, discuss the responsibility together with that person before naming him or her as the guardian in your estate plan.

Not Considering Estate Taxes

Maryland imposes an estate tax on estates worth over a certain amount. The taxes on a sizable estate could reduce the amount of money your beneficiaries receive. A comprehensive estate plan addresses this by including strategies to minimize estate taxes, such as establishing trusts or gifting assets before death.

Overlooking Incapacitation Plans

Estate planning is not only about what will happen when you die; it also addresses hypothetical situations where you might be disabled or otherwise incapacitated. If you are unable to manage your own affairs and have failed to plan properly for that, someone might have to go to court to petition for the authority to make important decisions on your behalf. 

Instead of hoping that turns out favorable, you can include various measures in your estate plan to avoid that type of situation altogether including:

• Durable Power of Attorney: This allows you to designate someone you trust to make financial decisions on your behalf if you are incapacitated.

• Healthcare Directive: This allows you to designate someone you trust to make medical decisions for you. 

Without these documents, the people you would prefer to handle these matters could face legal battles during an already challenging time.

Schedule a Free Consultation with a Silver Spring, MD Estate Planning Lawyer

If you want to make sure your wishes are carried out after your death, speak with a dedicated Bethesda, MD estate planning attorney to review the aspects of a thorough estate plan. Working with someone who has knowledge and experience can help you avoid common mistakes that create unintended obstacles for beneficiaries. 

At The Eleff Law Group, we are passionate about providing clients with all the information they need to make informed decisions that serve their interests and give them peace of mind. Call us at 301-857-1990 to schedule a free consultation.