Do you have an estate plan? An estate plan is not only for the rich, it is for every hardworking person who does not want to see their loved ones go through hardships, or their assets distributed in a haphazard manner after they are gone.
Estate Planning involves the disposition of your assets based on your goals and objectives at the lowest tax cost possible. At the Law Office of Biola Bakare, LLC, we strive to help you achieve these goals by advising you on how best to maximize the distribution of your assets such as retirement plans, business interests, life insurance, monetary gifts, etc. during your lifetime and at the time of your death. As you consider estate planning, you need to plan for disability or incapacity when you are alive, figure out who will inherit your assets after you die, and come up with the best way to pass on these assets to your beneficiaries. Once you know who your potential beneficiaries are, we will advise you on effectively utilizing all credits, exemptions, and tax credits which can minimize potential estate taxes. Estate taxes both (federal and state) can take a huge chunk out of your estate. This can significantly change the distribution of assets to your beneficiaries. With proper estate planning and strategies, we can help you minimize or postpone the impact of these taxes. We will craft a comprehensive estate plan and coordinate with your financial adviser, accountant, insurance agent, etc. to obtain the most advantageous result for you based on your objectives, goals, and background. We offer a broad range of planning levels tailored and customized to meet each client's unique needs. |
An estate plan is for married couples, single individuals, seniors, or single parents. If you are a single parent, an estate plan will protect your minor children from being passed from one stranger to another in the event of a tragedy. You will have the peace of mind of knowing that a trusted individual appointed by you will care for your children and take care of their finances, according to your wishes.
Creating a comprehensive estate plan is the best thing you can do for yourself and your loved ones. Contact us or call us today at 301.356.5773 for a free consultation to get started. |
TrustsRevocable Living Trusts and Irrevocable Trusts.
A Revocable Living Trust is an inter vivos trust which can be amended by its maker (who is referred to as grantor, settlor, or trustor). Here are a few advantages and disadvantages of Revocable Living Trusts. Property Management: A revocable living trust is a flexible mechanism for the management of the grantor's assets if the grantor becomes incompetent or has diminished capacities. This can eliminate the need for guardianship proceeding for the purpose of managing a disabled person's property. Privacy: A trust is not a public document and it can afford privacy from the prying eyes of the public. This is due to the fact that all estate files are maintained by the Register of Wills in the county of deceased's residence. The members of public have a right to view these files at any time. In some circumstances, property held in trust can be made available to beneficiaries almost immediately as opposed to the probate process where such distributions cannot be made until the estate is closed, which is at least a 6 month period. Out-Of-State Property: if the decedent owns real property in another state, for example a vacation home, it will be necessary to open an ancillary probate estate in that state if the decedent uses a will to dispose of that property. If however, the decedent creates a revocable living trust and transfers that out-of-state property into the trust, there will be no need for an ancillary probate.One note of caution: the use of revocable living trust does not avoid applicable death taxes in that state. The grantor has to make sure that a living trust is permissible to own residential real property in that state e.g. Florida discourages the use of revocable living trust to hold residential real property but funding such an asset into a trust is still doable. Validity in all states: A Revocable Living Trust is valid in all states unlike a will that may have to be redrafted to comply with each state's laws. Revocable living trusts become irrevocable upon the grantor's death. Irrevocable Trusts: there are various types of irrevocable trusts. Most of these trusts have great tax advantages for the grantor's estate. The terms of this trust cannot be changed by the grantor. The grantor gives up control of all assets transferred to the trust, chooses a trustee or trustees, and names beneficiaries. Examples of Irrevocable Trusts: Irrevocable Life Insurance Trust (ILIT) avoids federal estate tax on the death of the surviving spouse and creates liquidity without delays of probate. Generation Skipping Transfer Trust (GST) is designed to pass greater wealth to your grandchildren or more remote descendants. This can result in great tax savings because wealth is preserved for future generations by skipping the transfer tax that would have been due at the death of each generation of heirs. Supplemental or Special Needs Trust is designed to ensure that people with mental or physical disabilities enjoy the use of property that is intended to be held for their benefit. This trust protects the assets of this class, while still allowing them to qualify for and receive government health benefits under Medicaid laws. IRA Stretch Trust: If you own a large IRA and do not need the funds for retirement, want to reduce taxes, and increase wealth to your heirs, you may want to consider establishing a Stretch IRA to benefit your children, and leave a legacy for successive generations. There are primarily two Stretch IRA designs. One is a Simple Stretch IRA. The other is a Generational Stretch IRA. Both designs are subject to estate tax when you pass away, but the full value of either IRA can be protected with life insurance, providing long-term benefits for your family. Depending on your situation, contacting an experienced estate attorney can help you utilize one of more of these trusts effectively in your estate planning. |
Wills
A Will is a legal document that spells out your wishes regarding distribution of your properties and assets when you die. If you die intestate (without a Will), state laws will determine how your assets will be distributed based on the laws of intestacy of that state.
Your Will gives you the opportunity to make specific bequests to unrelated individuals or charities. You can indicate how you want your assets distributed to your family and individuals according to their needs. A Will helps you deal with particular concerns or assets (e.g. who will care for a disabled child, who will care for your pet, etc). Here are a Few Benefits of Having a Will: You can make specific bequests to unrelated individuals, charities, or a cherished pet; make unequal distributions to children, siblings, etc. according to their needs, or deal with particular assets or concerns (e.g. a disabled child). A Will allows you to choose a personal representative who will oversee the distribution of your assets according to your wishes. If you do not specify a personal representative, the court will choose one for you but this may not be your desire. You can name a trusted person to be the guardian of your minor children in your Will. Imagine the fiasco that can occur if you do not have this in place prior to your death. There can be a lot of fighting within the family as to who should care for your minor children and be in charge of assets distributed to them after your death, especially if there is no other parent alive. The probate process can be made simpler by including provisions in your will regarding payment of funeral and burial or cremation expenses, allocation of funds for perpetual care of your grave, payment of inheritance or estate taxes on probate and non-probate assets, etc. Remember, if you do not have a Will, the state will create one for you and it may not be in line with your wishes. Contact us or call us at 301.356.5773 to discuss a Will that will reflect your wishes. You will be glad you did. Intestacy Provisions (if you die without a Will): Maryland Spouse: a. if there is a surviving minor child: the spouse takes one-half of the estate. b. if there is no surviving minor child but there is a surviving issue (adult children, grand-children, etc.) or parent, the spouse takes $40,000 ($15,000 for a date of death prior to October 1, 2017) plus one-half of residue. c. if there is no surviving issue or parent, the spouse takes the entire estate. Children or Issue by Representation: these divide the balance of the estate not taken by the spouse, (the interest of a predeceased child passes to issue of that child) or the entire estate if no spouse. Parents (only take if no issue): these divide the balance of the estate not taken by the spouse, or the entire estate if no spouse and no issue or surviving parent takes all. Other Blood Relatives (including brothers and sisters of decedent and others related no more distantly than by shared great-grandparent; only take if no spouse, issue, or parent): these divide entire estate (share of deceased sibling or grandparent or great-grandparent going to their issue). Stepchildren (only if no other living blood relative): these take the entire estate by representation. No living heirs or stepchildren: estate goes to the Department of Health and Mental Hygiene if decedent was the recipient of long-term care benefits under Maryland's Medical Assistance Program. Otherwise, estate goes to the Board of Education where decedent resided. **Note "child" does not include a stepchild or foster child. Washington, D.C. Spouse: a. if there are surviving children (who are children of surviving spouse); spouse takes two-thirds, one-third goes to children. b. if there is one or more children who are not children of deceased or one or more who are not children of surviving spouse, spouse takes one-half, children takes one-half. c. if there are no children, only parents and spouse; spouse takes three-fourths of estate, parents take one-fourth. d. if there is no surviving issue or parent: the spouse takes the entire estate. Children or Issue by Representation: these take the balance of the estate not taken by the spouse, or the entire estate (if no spouse) divided equally among them. Parents (only take if no children): parents take one-fourth of estate not taken by the spouse, or the entire estate if no spouse and no issue, divided equally between mom and dad of deceased. Other Blood Relatives: if survived by brother, sister, niece or nephew but no children, spouse or parent, estate is divided equally among them. Collateral Relations: if no living spouse, children, parent brothers, sisters, or descendants of these relations, then collateral relations divide estate equally. Grandparents: if no living spouse, children, parent brothers, sisters, descendants of these relations or collateral relations, then grandparents divide estate equally. No other Relatives: estate goes to Washington, D.C. to be used by the Mayor of the D.C. for the benefit of the poor. Whether you know it or not, if you do not have a Will (or Trust plan), the State will provide one for you and it may not adequately reflect your desires. |
Ancillary Documents
Advanced Healthcare Directive:
An advanced healthcare directive or Living Will is a legal document that spells out your wishes and preferences in the event you are incapacitated, ill and/or unable to make health care decisions for yourself. With this document, you can indicate whether you would like to be placed on life support machines, resuscitated in the event of cardiac or respiratory arrest, have any diagnostic testing, donate an organ, prefer certain surgical procedures, or any other critical medical care you may need in situations when you are unable to make healthcare decisions for yourself. With an advanced healthcare directive, your loved ones don't have to guess what your healthcare preferences or decisions when you are incapacitated. Doctors and other health professional will carry out any wishes contained in the document, implement your plans, and everyone is in a win-win situation under the circumstances. If you are dying, you can specify if you would like to spend the rest of your days in a nursing home, hospital or at home. You get to make your decisions ahead of time. HIPAA Authorization: With a HIPAA authorization, you can direct your doctors and medical care team to release all your medical and private information to trusted individuals named within the document. Doctors and medical personnel will not release information about you to a loved one or relative unless you have instructed them to do so. If you do not have these important documents, your family and doctors will have to guess and/or decide on what is best for you. Durable Power of Attorney: A durable power of attorney is a document that authorizes the creation of an agency relationship wherein you (the principal) appoints another person (the agent) to act on your behalf or transact business or legal and financial matters. In the event that the principal is incapacitated or disabled, this document permits an agent to take actions that can protect or preserve your assets. There are 2 types of powers or attorney: General and Limited Powers of Attorney. General Power of Attorney: A principal can choose to appoint someone he/she trusts and who shares their values to act in all areas of their affairs, personal, business, legal, taxes, etc. This person will perform every act the principal would perform if they were available or competent. Limited Power of Attorney: A principal can choose to restrict the types of transactions an agent will undertake on their behalf or limit the period of time within which a power of attorney can be effective. An example of this is when a principal appoints someone to handle a real estate settlement on their behalf. A durable power of attorney is legally binding and absent other limitations, is terminated only on the death of the principal. Contact us or call us at 301.356.5773 to discuss how best we can help you prepare an advanced healthcare directive/Living Will and a durable power of attorney as part of your comprehensive estate plan. |
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From within Prince George’s County, our law firm represents estate planning clients from Laurel, Clarksville, Columbia, Elkridge, Ellicott City, Marriottsville, Upper Marlboro, Mitchellville, Bowie, Beltsville, Glenn Dale, College Park, Greenbelt, Silver Spring, Rockville, Potomac, Washington, D.C. and surrounding areas. The Maryland and Washington, D.C. Law Firm of Biola Bakare, LLC focuses on Maryland and Washington, D.C. comprehensive estate planning, wills, trusts, estates, probate administration, asset protection, children’s trust, credit shelter or family trust, special needs trust, beneficiary planning, incapacity planning, enhanced durable power of attorney, enhanced advance directive, business succession planning, and family limited partnerships. Attorney Biola Bakare offers comprehensive planning as a trust attorney, probate attorney, asset protection attorney, corporate attorney, and business law attorney. Licensed in Maryland, Washington, D.C., and New York. DISCLAIMER: This website is for informational purposes only. It is not to be construed as formal legal advice. Viewing the contents or exchanging emails with the Law Office of Biola Bakare, LLC does not create a business or professional relationship between the parties. No attorney/client relationship will be created with the Law Office of Biola Bakare, LLC without a formal, written legal services agreement. |