When we hear the words ‘estate planning’ many misunderstand its significance for all income levels; it really does apply to all of us. The first element, the will, and the second, trusts, when applicable, form the important foundations of a financial document whose basic purpose is to secure your estate, of any size. For those of us who decline to write a will, the State of Maryland will direct the disposition of assets through the law of intestacy as found in the Estates and Trusts Article of the Maryland Code.
The will is essential, serving as your voice when you are gone. It allows you to determine beneficiaries, designate guardians for your children, reduce estate taxes, and contribute to preferred charities. While not everyone needs trusts, they are a way of supporting the will by specifically naming who manages your estate and even placing conditions on the distribution of your assets.
An estate plan, finally, is a gift to your family. By preparing and planning not only will your estate be distributed as you wish, but you will help avoid potential conflict among members of your family after your passing.