As you research your estate planning options in Maryland, you’ve probably heard that setting up a trust allows you to keep your estate out of probate. But is a trust the smart way to avoid probate, and should you bypass probate at all? Let’s examine these questions.

Should You Avoid Probate?

For regular estates in the State of Maryland, probate takes approximately one year from the date of death. Probate involves court fees and usually other costs, which may amount to thousands of dollars. On top of that, it’s a public process open for everyone’s view and may be stressful for the decedent’s family members.

It’s easy to understand why many residents prefer to avoid probate and transfer assets directly to their beneficiaries through a trust.

The Advantages of Probate in Maryland

Having said that, probate in Maryland may be a comparatively straightforward process if the decedent left a clear and valid will. Probate may also abbreviate the period during which creditors may file claims against the estate.

Moreover, probate may allow the court to supervise the personal representative and make sure they comply with important estate administration requirements, like opening an estate account or filing tax returns on time.

The Advantages a Trust Offers

Is a trust the smart way to avoid probate? For many estates, yes, but that’s just one benefit of trusts. A trust allows you to control and shield your assets both during and after your lifetime. Apart from bypassing probate, a trust can fulfill many roles, such as:

• Safeguarding money for adult children until a predetermined period (like reaching a certain age or college graduation)
• Providing for a loved one with special needs while allowing them to qualify for public benefits
• Protecting assets from Medicaid and creditor claims, if it’s an irrevocable trust

How to Avoid Probate in Maryland Without a Trust

While a trust is a highly useful legal instrument, its costs and management requirements may make it impractical for many estates. If that’s your case, you may use other solutions to avoid probate when you transfer assets to beneficiaries, such as:

• Joint ownership with right of survivorship
• Payable-on-death bank accounts
• Transfer-on-death securities
• Transfer-on-death vehicle registration
• Insurance policies with designated beneficiaries

Finally, small estates undergo simplified probate in Maryland. This legal process is both shorter and less expensive than regular probate. Your estate may count as a small estate if your total assets are worth under $50,000 or under $100,000 if a surviving spouse is your only beneficiary.

Powers & Worshtil, P.C.: Cost-Effective Estate Planning Solutions in Upper Marlboro, MD

Are you asking yourself, “Is a trust the smart way to avoid probate? Should I avoid probate at all?” Contact Powers & Worshtil, P.C., for trusted legal counsel on estate planning in Maryland. An experienced estate planning attorney will answer all your questions and suggest flexible, secure solutions that protect your assets.

Call (301) 627-1000 or leave your details online to schedule a consultation with a skilled estate lawyer in Upper Marlboro, MD.