As a Maryland estate planning attorney, I meet with many people who do not know if they need a will, a trust or both. So, how do you know if you need a Trust instead of a simple Will? Many people assume that Revocable Living Trusts are only for the wealthy, but Revocable Living Trusts have benefits even for the average person. If your life or financial situation fits into one or more of the categories below, then you should consider a Revocable Living Trust instead of a Will.
Planning for Disability
Regardless of your net worth, and particularly if any of your assets are titled solely in your name, then you should consider a Revocable Living Trust for disability planning to avoid court-supervised guardianship or conservatorship.
Estate Planning for Minor Beneficiaries
Parents with minor children and who have life insurance policies or retirement plans with high values should consider a Revocable Living Trust. In the event both parents die while the children are still minors, the insurance or retirement funds will be placed in the Trust for the benefit of the children instead of in a court-supervised guardianship or conservatorship.
Estate Planning for Singles
Anyone who is single and has assets titled solely in their name should consider a Revocable Living Trust to avoid court-supervised guardianship and the costs and hassles of probate.
Tax Planning for Married Couples
If you are married and the combined estates of you and your spouse exceed the Federal exemption of $10,000,000 (2011) or your state’s exemption ($1,000,000 for Maryland the Washington, DC), then you should consider establishing a Revocable Living Trusts to eliminate or avoid estate taxes.
If You Own Real Estate in More Than One State
If you own real estate in more than one state or outside of your home state, then you should consider a Revocable Living Trust to avoid multi-state probate.
Kinsey Law Group, P.C. was formed to focus on the needs of families. We are dedicated to assisting you in the areas of Estate Planning and Assisted Reproduction/Surrogacy. If you have questions or concerns, you’re invited to call 301-968-1630 or send an e-mail any time, without cost or obligation.
Locations: Montgomery County (Bethesda, Maryland); Prince George’s County (Largo, Maryland) and Washington, D.C.