Steven M. Heinl - Attorney

There’s nothing lucky about good estate planning. Happy St. Patrick’s Day! ☘️

What is estate planning and why does it matter?

Estate planning involves outlining how you want your money, property, and possessions handled—and who will make important health care decisions for you—if you pass away or become unable to communicate. At its core, this process is about peace of mind, knowing your family won’t be overwhelmed with added stress and confusion during an already emotional time.

A typical estate plan includes:

À last will and testament directs how your property and assets should be distributed, but does not avoid probate.

A revocable trust allows you to direct how your assets are managed and distributed, both during your lifetime and after you pass away, allowing your assets to avoid probate.

A financial power of attorney authorizes someone you trust make financial and legal decisions on your behalf.

An advance medical directive spells out your medical preferences if you can’t communicate them yourself.

A solid estate plan makes it easier to pass your assets to your heirs and helps prevent costly disputes and court delays later on. Starting early gives you time to explore your options and make thoughtful decisions.

Happy New Year! 🚨 This is a friendly reminder to review your beneficiary designations for accounts like retirement plans, life insurance, and bank accounts at least annually or after major life events (marriage, divorce, new child, death in family) to ensure assets go to your intended loved ones (or charitable organizations) and align with your estate plan, preventing potentially decades-old, outdated instructions from taking effect. These designations are legally binding and often bypass your will, making updates essential for a smooth transfer of assets to your family. If you are in need of a review and/or an update to your personal estate plan, contact me at [email protected] to schedule a consultation.

Estate planning, when done correctly, can help to alleviate family disputes upon the incapacity and/or death of a loved one. The process of putting your estate planning documents together doesn’t have to be complicated, but it requires action. A competent attorney can prepare an estate plan that helps you and your family avoid costly mistakes.

Once the process is complete, many of my clients say it was easier than they anticipated. If you have minor children, a second marriage with a blended family, or just want to better understand options for probate avoidance, I’m happy to discuss all estate planning topics with you. Hyatt & Weber, P.A. has law offices in Annapolis, Baltimore, and Easton, Maryland.

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🤔💡One of the most common concepts my clients want to understand is the difference between a will and a revocable trust. I prepare a lot of both (and everyone should have a pour-over will even if they have a revocable trust). In Maryland, a will dictates asset distribution after death but requires probate, which is public. The provisions of a revocable trust direct how assets are to be held/used during the life, incapcity, and after death of its creator. A revocable trust allows for assets titled to the trust to bypass probate, which typically allows for quicker distribution to beneficiaries, if that is the intended outcome.

Steven M. Heinl Steven serves as an at-large member on the Baltimore County Planning Board. He was appointed by the Baltimore County Executive in January of 2019. The Planning Board makes recommendations regarding the county budget and weighs-in on land use and zoning matters in Baltimore County, Maryland.

Probate is the court-supervised process of validating a decedent’s will if they have one, gathering and valuing their assets, identifying and settling their debts, and, ultimately, distributing their estate to their chosen beneficiaries or heirs as determined by law. There are compelling reasons to implement an estate plan that allows assets to avoid probate. Probate can turn a deeply personal matter into a public proceeding during an already difficult and grief-filled time. The most common tools used by my clients are creation of a revocable trust, payable-on-death designations, and lifetime gifting. An estate plan is not a ‘one size fits all’ proposition. Each client has their own goals and family dynamics.

Last night, I gathered with some of my colleagues in Annapolis to acknowledge that the year is off to a solid start.

HW attorneys were out in Annapolis celebrating recent wins for our clients.✌🏻is for victory!

Life insurance is often used to ensure there is liquidity available to take care of your dependents upon your death. Designating your minor children as the direct beneficiaries of life insurance proceeds is a mistake that should be avoided. Consider naming your trust as the beneficiary of your life insurance policy. The trust can be a standalone instrument or created within your last will and testament. The trust has terms that designate a trustee who will handle the money for the benefit of the children until they come of age.

When it comes to estate planning, a family home can be among the most valuable assets to be passed down. Generally speaking, there are three ways for leaving a home to your heirs:

1) Last Will and Testament: You can use your will to designate to whom the home should go and in what proportions. While designating through your will may achieve the desired end result, the home will go through the probate process, which will slow down the transfer or sale of the property for your beneficiaries.

2) Life Estate Deed: In Maryland, a homeowner has the option to re-title their real property into what is known as a life estate deed. There are different types of life estate deeds, so be sure to consult with a competent estate planning attorney to determine what is best for you. This type of deed allows for the real property to be transferred to the desired beneficiaries outside of probate upon your death. Your real property will also receive the benefit of a stepped-up basis for tax purposes, which can save your beneficiaries thousands of dollars in capital gains taxes, if/when they go to sell it.

3) Trust: Another way to avoid probate is to transfer the real property into a revocable trust, which has the benefit of allowing you greater control over how the real property is managed and under what conditions it can be sold. The real property is owned by your trust until your death with full rights of transfer and/or sale by the trustee, but avoids probate and receives a stepped-up basis upon your death.

Adding a child to your deed during your lifetime can have significant, negative tax consequences. It is imperative that you consult with competent legal counsel before re-titling your real property. There are numerous factors that go into determining which estate planning vehicle is most appropriate for you and your family.

Steven M. Heinl Steven serves as an at-large member on the Baltimore County Planning Board. He was appointed by the Baltimore County Executive in January of 2019. The Planning Board makes recommendations regarding the county budget and weighs-in on land use and zoning matters in Baltimore County, Maryland.

If it has been 5 years or more since you had your estate planning documents prepared, then you are due for a review of those documents. I help families understand their options and achieve their goals for asset transfers upon death and/or incapacity. The process can be relatively painless, and my clients feel a sense of relief in knowing that they have a complete and updated estate plan in place. For more information, contact me at [email protected] or (410)260-6593 to get started.