Best Trusts Lawyers in Maryland

About Trusts Law in Maryland, United States

Trusts are legal arrangements where one person (the trustee) holds and manages assets for the benefit of another (the beneficiary). In Maryland, trusts play a significant role in estate planning, asset protection, charitable giving, and providing for minor children or individuals with special needs. Trusts can help avoid probate, manage tax liabilities, and offer greater control over how assets are distributed after death. Maryland law recognizes several types of trusts, such as revocable living trusts, irrevocable trusts, testamentary trusts, and special needs trusts, each serving different purposes depending on an individual’s estate planning goals.

Why You May Need a Lawyer

Setting up or managing a trust can involve complex legal and tax considerations. Many people seek the help of a qualified attorney for the following reasons:

• Creating a trust that aligns with your needs and complies with Maryland law
• Transferring assets into the trust properly to avoid probate
• Managing or modifying existing trusts
• Handling disputes between beneficiaries and trustees
• Ensuring the trust provides for minors, individuals with disabilities, or protects assets from creditors
• Understanding and minimizing tax implications
• Ensuring compliance with ongoing trustee responsibilities and reporting
• Navigating contested trusts or trust litigation

An experienced trusts attorney can provide guidance, draft necessary legal documents, help avoid costly mistakes, and represent your interests in any disputes.

Local Laws Overview

Maryland’s trust laws are governed by the Maryland Trust Act, which is found in Title 14.5 of the Maryland Estates and Trusts Code. The state has adopted the Uniform Trust Code with some modifications specific to Maryland. Important aspects include:

• Trusts can be revocable or irrevocable, with different rights and restrictions for each
• Trusts are not subject to the probate process if properly funded
• There are specific rules for powers and duties of trustees, including requirements for loyalty, impartiality, and prudent investing
• Trust amendments and revocation rules depend on the trust’s terms and whether it is revocable
• Special needs trusts must comply with both federal and Maryland regulations to protect public benefit eligibility
• Maryland has its own rules for reporting, notification of beneficiaries, and trustee accounting
• The statute of limitations for contesting trusts and possible grounds for challenging a trust under Maryland law

Consulting a lawyer familiar with Maryland’s law is essential to ensure compliance and proper administration of your trust.

Frequently Asked Questions

What is the difference between a revocable and irrevocable trust in Maryland?

A revocable trust can be altered or terminated by the person who created it during their lifetime, offering flexibility and privacy. An irrevocable trust cannot be easily changed or canceled once established, but it offers greater asset protection and potential tax benefits.

Do all assets need to be placed in a trust to avoid probate in Maryland?

Only assets that are legally transferred into the trust will avoid probate. Assets not in the trust at the time of death may still be subject to probate.

Can I serve as my own trustee in Maryland?

Yes, often the person who creates the trust also serves as the initial trustee, especially for revocable living trusts. When the creator dies or becomes incapacitated, a successor trustee typically takes over.

Are trusts subject to Maryland inheritance or estate tax?

Trusts may be subject to Maryland estate tax if the total value of the estate exceeds the state exemption threshold. Maryland also has an inheritance tax on certain beneficiary relationships. Tax impact can depend on how the trust is structured.

Can a trust be challenged in Maryland?

Yes, trusts can be contested in Maryland courts for reasons such as undue influence, fraud, lack of capacity, or improper execution. There are time limits for contesting trusts, so prompt legal action is necessary.

What duties does a trustee have under Maryland law?

Trustees in Maryland have a fiduciary duty to act in the best interests of the beneficiaries, manage trust assets prudently, keep accurate records, comply with reporting requirements, and follow the terms of the trust.

Is a trust private or public in Maryland?

Unlike wills, trusts typically do not become part of the public record, offering privacy regarding asset distribution and contents.

Do I need a trust if I already have a will?

A will takes effect only after death and must go through probate, while a trust can manage assets during your lifetime and avoid probate. Many people use both tools together for a comprehensive estate plan.

What is a special needs trust and how does it benefit Maryland residents?

A special needs trust allows you to provide for a disabled beneficiary without affecting their eligibility for government benefits like Medicaid or Supplemental Security Income. These trusts must be carefully drafted to comply with state and federal regulations.

How often should a trust be reviewed in Maryland?

It is a good idea to review your trust every few years, or whenever there is a major life event such as marriage, divorce, birth, death, or significant changes in financial or family circumstances.

Additional Resources

If you need more information or assistance with trusts in Maryland, consider the following resources:

• Maryland Courts - Estate and Trust Information
• Maryland State Bar Association
• Maryland Office of the Register of Wills
• Maryland Attorney General’s Office - Consumer Protection Division
• National Academy of Elder Law Attorneys - Maryland Chapter
• Local Legal Aid Societies for low income resources

Next Steps

If you are considering setting up a trust, managing an existing trust, or have questions about your rights or obligations under a trust in Maryland, it is important to:

• Gather all relevant documents about your assets, estate, and family situation
• Write down your goals and any specific concerns you have about asset distribution or protection
• Consult an experienced Maryland estate planning or trusts attorney who can guide you through your options
• Request an initial consultation to discuss which type of trust may fit your needs and how state law will affect your plan
• Review documents regularly and keep them updated as your circumstances change
• Stay informed of changes in Maryland law that may impact your estate plan

Taking these steps will help you make informed decisions, protect your assets, and provide for your loved ones in accordance with Maryland law.