Post Divorce Estate Planning

TYING UP LOOSE ENDS After the dissolution of a marriage, the last thing most people want to do is think about estate planning. With all the ups and downs associated with separation and divorce, it certainly is not a fun thing to plan for the distribution of property after one’s death. And yet, viewed from a different perspective, this fundamental life changing event can be a particularly good time to reflect on what is important to each of us and how we would like to be remembered by those who follow us. With some thoughtful preparation, recently divorced people can use the immediate post-divorce period to draft some basic estate planning documents consistent with their new legal status. The severing of the legal relationship between spouses has a major impact on estate planning. In Maryland, following a final divorce, the provisions made by the writer of a will regarding his or her former spouse are revoked by operation of law, unless there are alternative provisions in his or her will or there is language in the final divorce order to the contrary. While this affords us some measure of protection, as one might expect, relying solely on the legal default mechanism contained in the Estates and Trusts Article of the Maryland Code is likely not sufficient. Single people with minor children may have special concerns about the management of funds on behalf of their minor children. And as a general matter, because property is not exclusively passed through a will, it is essential to pay careful attention to titling of assets and forms designating beneficiaries for certain property such...

Estate Planning: Choosing Your Personal Representative

In thinking about those who are to receive our possessions after we pass from this earth, many of us weigh and balance this decision carefully. For example, it is not uncommon during the estate planning process for people to create extensive lists of their tangible personal property – including jewelry, tools, art, furniture, and other important items – and designate specific items to many different individuals. It is also not uncommon to name various individuals or charities to receive sums of money specified in a will. While deciding how to distribute our property is a key decision in preparing a will, it is equally important to think through the choice of a personal representative. A personal representative, who may also be called an executor, is the individual who is responsible for paying the final bills and taxes of the decedent, distributing the property of the decedent in accordance with his or her wishes, and generally interfacing with appropriate governmental agencies to ensure that all the business affairs of the decedent are conducted appropriately. It is important to remember that a personal representative is a type of fiduciary. When acting as a fiduciary a special relationship is established. One party places trust, confidence, and reliance in another. A fiduciary has a duty to act for the benefit of the party who nominated or appointed him or her. In the context of estate planning, at its most basic, a personal representative must be able to account for every dollar that flows into the estate and every dollar that flows out of the estate. The goal of the personal representative is to...