Posted on June 01, 2016 in Estate Planning

Access To Digital Assets

Many of us are using online accounts to some degree: to manage finances, correspondence, or social interactions, all with the storage of their personal information. Sometimes the information is stored on our own personal devices, such as a laptop or smart phone. Other times, the information may be stored in the cloud or on the social network’s own servers. While the concept of digital assets is constantly growing as technology advances, the most common forms of digital assets are our digital photographs, emails, and social media accounts. The inability to access such records could be a huge sentimental loss for a family. For those of us who own a business, the inability to access digital access could have a severe financial impact if a trusted family member or agent cannot open or use work email or other important records in the event of the disability or death of the person holding the passwords.

What Did You Accept, When You Clicked "ACCEPT"?

Almost every online account we’ve ever opened had a terms of service contract that control the use of those services. It’s a sure bet that most of us never bother to read those boring lengthy agreements with terms of use of those online accounts, but they generally provide who has the right to access them – – and typically the terms restrict their use to just you, the person clicking the "accept" button. So if you provide someone else with your username and password, you likely are violating your contract with the service provider. On top of that, you actually could be in breach of federal and/or state privacy laws. Of primary concern however, with digital assets becoming an increasing part of your everyday life, what happens to them in the event of your incapacity or death?

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 Posted on April 01, 2016 in Prenuptial Agreements

The news and media are loaded with stories about messy celebrity divorces involving prenuptial agreements. While it may seem that only extremely wealthy individuals – or superstars – enter into prenuptial agreements before tying the knot, that simply is not true.

While not everyone needs a prenuptial agreement, there are certain times when it may make sense to put an agreement in place before saying "I do."

If You And Your Marriage Partner Have Unequal Assets

When one person comes into the marriage with significant financial assets, or if one party enters the marriage with substantial debt, a prenuptial agreement may be a good idea.

During a divorce, property is divided based on what courts deem as most equitable, and they can have wide discretion when making this decision. A prenuptial agreement will lay out how property is to be divided – or preserved for one or both parties – in the event of a divorce and can avoid a party losing substantial assets or taking on substantial debts.

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 Posted on January 01, 2016 in Estate Planning

For many people, the new year is a time to set goals for the year ahead – a list of to-dos. Consider adding estate planning to your list, as a priority item.

When To Update Your Estate Plan

A lot can happen in a year. If you have an existing estate plan, now is a great time to review your documents and determine whether any changes are needed. The following indicate life events that may require updates to your estate plan:

• Did you get married or divorced, or remarried, since your last update?
• Were you, your spouse or one of your children diagnosed with an illness or disability?
• Have you moved across state lines recently?
• Was a child or grandchild born since your last update?
• Did a loved one pass away?
• Did you experience a significant change in finances, such as retirement or receipt of an inheritance or other windfall?
• Did you purchase or sell a major asset, like a house?
• Did one of your children turn 18 years old since your last update?

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 Posted on November 01, 2015 in Estate Planning

The holiday season is upon us. For many, that means hitting the mall the day after Thanksgiving in search of the perfect gift. An often overlooked area for gifts? Your own estate.

Think of this as "strategic gifting." Not only will you be giving a loved-one a gift, but you may also reducing the size of your estate, avoiding or minimizing estate taxes, and ensuring your wealth is transferred to the next generation.

Under federal tax laws, you can gift up to $14,000 a year to another individual without incurring any gift tax. Gifts under $14,000 also don’t count against your lifetime combined federal estate and gift tax exemption.

Want to give more? Spouses can each gift $14,000 for a total of $28,000 per recipient; gifts to your child and his or her spouse, from you and your spouse bring the exemption amount to $56,000 per year.

Have a particularly large gift in mind? Consider bunching the gift tax exemptions, by making a partial gift close to year-end and the balance right at the start of the new year.

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 Posted on November 01, 2015 in Estate Planning

Maryland’s New Estate Tax Exemption

In 2014, Maryland’s estate tax exemption had been $1 million, and increased to $1.5 million in 2015. Over the next four years, this exemption amount will increase as follows:

• $2 million for individuals who pass away in 2016
• $3 million for individuals who pass away in 2017
• $4 million for individuals who pass away in 2018
• $5.9 million or so, to match the federal estate tax exemption then in effect for individuals who pass away in 2019

What Is An Estate Tax Exemption?

An estate tax exemption is the amount of money or assets that are exempt from estate taxes. When you pass away, your estate is subject to estate taxes. However, this tax applies only to estates that exceed the tax exemption. For example, in 2015, the Maryland estate tax exemption is $1.5 million. If someone dies in 2015 with a net estate of $1.6 million, that estate will only be taxed on the $100,000 that exceeds this exemption.

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