Most people who put off estate planning are not careless. They are working from assumptions that sound reasonable and turn out to be wrong. At Grant, Riffkin & Strauss, P.C., a Rockville firm that handles estate planning and probate for Montgomery County families, attorneys often meet relatives who learned the real rules only after a parent died or became unable to make decisions. Below are seven common myths, what Maryland law actually says, and five local firms that can help you build a plan that holds up.
What are the most common estate planning myths?
Myth 1: Do I need an estate plan if I don’t have much money?
Yes. Without a will, Maryland’s intestacy statute decides who inherits, and without a power of attorney your family may have to petition the circuit court for guardianship if you become incapacitated. That process takes time, involves court filings and fees, and puts a judge in charge of choices you could have made yourself.
Myth 2: Does having a will mean my family avoids probate?
No. Probate is the court-supervised process of settling an estate, and a will passes through it. In Maryland it starts with the Register of Wills in the county where the person lived. Assets that skip probate are those with their own transfer rules: jointly titled property, accounts with payable-on-death or transfer-on-death designations, retirement accounts with named beneficiaries, and property held in a trust.
Myth 3: Will my spouse automatically inherit everything?
Not always. If you die without a will and leave children, Maryland law can give your spouse as little as half the estate, with the rest going to the children. When those children are minors, their share may need court-supervised management until they turn 18.
Myth 4: Isn’t estate planning only about what happens after I die?
No. A complete plan also covers incapacity. A durable power of attorney names someone to handle finances, and an advance directive under Maryland’s Health Care Decisions Act names a health care agent and records your treatment wishes.
Myth 5: Do estate taxes only matter for the very wealthy?
In Maryland, they reach further than many expect. The state taxes estates above $5 million, and that total includes your home, retirement accounts, and life insurance proceeds. Maryland also charges a 10 percent inheritance tax on gifts to beneficiaries such as nieces, nephews, and friends, while spouses, children, parents, and siblings are exempt.
Myth 6: Once my documents are signed, am I finished?
No. Marriage, divorce, a new child, a move, or a large change in assets can make a plan outdated. Beneficiary designations need the same review, because they override what the will says about those accounts.
Myth 7: Will an online form work just as well?
Sometimes, but errors are common. Maryland requires a will to be in writing, signed by the person making it, and witnessed by two people. A form can also miss state-specific issues such as the inheritance tax or the needs of a beneficiary who receives disability benefits.
Which Montgomery County firms can help with estate planning?
These five firms each handle estate planning matters for clients in the Rockville and Bethesda area.
- Grant, Riffkin & Strauss, P.C.
- The Tyra Law Firm
- Altman & Associates
- Bregman, Berbert, Schwartz & Gilday
- Hamelburg Law
1. Grant, Riffkin & Strauss, P.C.
Grant, Riffkin & Strauss, P.C. began as Alan H. Grant, P.C. and has grown into a boutique civil practice at 15204 Omega Drive in Rockville, with Alan H. Grant as owner and managing partner. Its estate planning work addresses several of the myths above directly: wills, durable powers of attorney, health care directives, planning for non-probate assets, and succession planning for business owners.
The firm also handles probate and trust administration, advising personal representatives and trustees on locating assets, paying debts, filing taxes, and distributing the estate. Because it practices real estate and small business law too, clients whose plans involve a home, rental property, or a company can work with one firm on the related documents.
2. The Tyra Law Firm
A Rockville law firm whose practice includes estate planning.
3. Altman & Associates
This firm has a Rockville office and works with clients on estate planning matters.
4. Bregman, Berbert, Schwartz & Gilday
A Bethesda law firm that counts estate planning among its practice areas.
5. Hamelburg Law
Based in Bethesda, this firm’s work includes real estate and estate matters.
How do you avoid these mistakes?
The common thread in every myth above is waiting. Families rarely lose money because a plan was imperfect; they lose it because no plan existed, or because the one on file no longer matched their lives. Gather your current documents, list your accounts and who is named on each, and note anyone who depends on you. Then schedule a conversation with a Maryland estate planning attorney before a crisis makes the decisions for you.
This article provides general information and is not legal advice. Reading it does not create an attorney-client relationship.