Is a Trust Worthy of Consideration in Maryland?
To save time and costs for beneficiaries, estate planning attorneys often advocate trust formation. When seeking to avoid a probate proceeding of significant length, to address trust administration concerns or to weigh the advantages and disadvantages of the different types of trusts, it is a good idea to work with experienced estate planning attorneys who can provide candid advice about creating a customized plan.
Can I establish a trust?
According to the Maryland Trust Code Title 14.5, to create a trust, a present conveyance of a beneficial interest in property and a manifestation of present intent to transfer property is required. In addition, there must be a gift of property to the trust and a valid purpose behind the creation of the trust, which may include:
- Minimizing gift, estate and inheritance taxes
- Conserving wealth
- Simplifying transfer of property upon the death of the property owner
To simplify the distribution of assets by avoiding probate and the expenses associated with the process, a trust should likely be formed. There are various types of trusts an estate planning attorney may form for a client. A revocable trust is a flexible tool because the creator, or settlor, can alter provisions of the trust at any given time. Although an irrevocable trust is more advantageous under the tax code, its conditions cannot be changed or terminated by the settlor without the consent of the trustee and beneficiaries. There are several other types of trusts a highly skilled estate and family law attorney can recommend depending on a client’s objectives.
Mudd, Mudd & Fitzgerald, P.A. implements strategies gained from practicing law for more than a century. The firm serves clients with estate planning matters in southern Maryland.