Serious offenses in Maryland that carry penalties exceeding one year of imprisonment are classified as felonies (Md. Code Ann., Crim. Law § 14-101). If you’re wondering what it takes to address such charges, the answer lies in early action, proper guidance, and a strategic approach. Consulting a criminal lawyer immediately can help protect your rights and clarify your options. Act without delay by scheduling an appointment with an experienced criminal attorney at the Law Offices of Terri D. Mason.
What Constitutes a Felony?
Maryland classifies certain severe offenses as felonies, typically those punishable by more than one year of incarceration (Md. Code Ann., Crim. Law § 14-101). These charges often encompass crimes such as homicide, drug distribution, and violent assaults. Individuals facing felony allegations may undergo a more complex legal process in the state’s Circuit Courts, where judges and prosecutors focus on serious violations.
Depending on the details of a case, potential sentences can include lengthy prison terms, steep fines, or both. The stakes become higher if the defendant has a prior record, which may trigger stricter penalties. Seeking immediate insight from criminal lawyers in Maryland can help defendants understand evidence, assess defenses, and decide on next steps. For further information about approaches to felony cases, visit this page.
Differences Between Misdemeanors and Felonies
In Maryland, legal authorities generally categorize crimes as either misdemeanors or felonies. A misdemeanor often involves less severe behavior and carries a maximum penalty of up to one year of incarceration. Examples include certain lower-level assault offenses or theft under a specific dollar amount. In contrast, felonies are more serious and can lead to significantly longer prison sentences.
Theft exceeding particular monetary limits (Md. Code Ann., Crim. Law § 7-104) or offenses involving weapons may qualify as felonies. The procedural setting also differs: misdemeanors frequently move through District Court, while felonies proceed in Circuit Court. Understanding these classifications is essential because it shapes pre-trial motions, plea negotiations, and potential sentencing outcomes. A criminal attorney in Baltimore can advise on whether a charge might be elevated to a felony and what implications that holds for a defendant’s future.
Possible Penalties and Long-Term Effects
A felony conviction carries serious consequences that extend well beyond time in prison or financial sanctions. Individuals may face restrictions on employment, difficulty obtaining housing, or obstacles to professional licensing. For those already managing disabilities or mental health concerns, prolonged incarceration could disrupt critical services or resources. Additionally, felony records can appear in background checks, potentially limiting educational opportunities or eligibility for certain loans.
Prosecutors often pursue harsher sentences against repeat offenders, making it crucial to examine each charge’s specific elements. In some cases, criminal lawyers in Maryland can negotiate alternative sentencing arrangements or reduced penalties, depending on the circumstances. Proactive legal action may preserve future possibilities and minimize the life-changing effects of a felony.
Baltimore Felony? We Got Your Back.
The Law Offices of Terri D. Mason can guide individuals accused of felonies in Baltimore. Choose a criminal lawyer who understands your circumstances and takes firm steps to uphold your rights. If you need reliable representation from a criminal attorney in Baltimore, our team is prepared to help. Let us safeguard your interests during critical legal proceedings. Contact us today.
Felonies in Baltimore can lead to life-altering penalties, including imprisonment, steep fines, and long-term restrictions on civil liberties. Securing representation from a criminal lawyer at the earliest possible stage makes a substantial difference. The Law Offices of Terri D. Mason offers direct guidance to anyone who finds themselves under scrutiny for serious offenses. If urgent support from a criminal attorney is needed, call 443-948-7772 to schedule a consultation.
Common Felonies in Baltimore
Baltimore experiences a variety of felony offenses that significantly impact both individuals and communities. Below is a breakdown of some of the most frequently charged felonies in Maryland.
- Aggravated Assault
Aggravated assault is a violent crime that involves an attack on another person with the intent to cause serious bodily harm. This offense typically includes factors that elevate the charge beyond simple assault, such as:
- Use of a weapon – A firearm, knife, or blunt object can turn a simple assault into an aggravated offense.
- Severity of injury – If the victim suffers significant harm, such as broken bones or permanent disability, the charge may escalate.
- Intent to cause serious harm – Even if the attack does not result in severe injury, an act intended to cause serious bodily harm can be prosecuted as aggravated assault.
Aggravated assault is considered a felony due to the heightened danger it poses to public safety. Maryland courts impose harsh penalties, including lengthy prison sentences, depending on the circumstances. Defendants facing these charges often require a strategic defense that may challenge the intent, the level of injury, or the circumstances surrounding the incident.
- Robbery
Robbery is the unlawful taking of property from another person using force, intimidation, or the threat of violence. This crime is different from theft or burglary because it involves direct confrontation with the victim. Robbery cases fall into two main categories:
- Simple robbery – Involves taking property through force or intimidation without the use of a deadly weapon.
- Armed robbery – Occurs when the perpetrator uses or brandishes a weapon during the crime, significantly increasing potential penalties.
Robbery convictions in Maryland can lead to severe prison terms, particularly if weapons are involved. The prosecution must prove that force or fear was used to take property, which is why surveillance footage, witness testimony, and forensic evidence play a crucial role in these cases.
- Drug Trafficking and Major Narcotics Distribution
Drug-related felonies remain a significant focus of law enforcement in Baltimore. Charges related to drug trafficking and major narcotics distribution arise when an individual is found in possession of large quantities of controlled substances with the intent to distribute. These offenses often involve:
- Possession with intent to distribute – Having an excessive amount of drugs, which law enforcement assumes is meant for sale rather than personal use.
- Drug trafficking – Involves the large-scale movement, sale, or transport of illegal drugs, often across state lines.
- Manufacturing and distribution – Engaging in the production or sale of narcotics, which carries heavier penalties than simple possession.
Maryland’s strict drug laws mean that those convicted of major drug-related felonies may face extended prison sentences, asset forfeiture, and mandatory minimum penalties. Prosecutors rely on evidence such as intercepted communications, surveillance footage, and undercover operations to build their cases.
- Burglary
Burglary is a felony property crime involving unlawful entry into a building with the intent to commit a crime, such as theft or vandalism. Maryland law classifies burglary into degrees based on the type of property entered and the crime intended:
- First-degree burglary – Breaking into a dwelling (home) with intent to commit theft or a violent crime. This carries the harshest penalties.
- Second-degree burglary – Unlawful entry into a business or non-residential building with criminal intent.
- Third-degree burglary – Breaking into a structure with the intent to commit any crime, including assault.
- Fourth-degree burglary – Unlawfully entering a structure without necessarily intending to commit another crime but still violating trespassing laws.
Because burglary involves unlawful entry, prosecutors typically use physical evidence such as fingerprints, security footage, and eyewitness accounts to establish guilt. Defendants may argue mistaken identity, lack of intent, or insufficient evidence as part of their defense.
Working with the Right Criminal Attorney in Baltimore
Facing felony charges demands competent legal representation. A skilled criminal lawyer understands the nuances of Maryland law and can provide a robust defense. The Law Offices of Terri D. Mason, P.C., provides counsel to individuals needing a criminal attorney. Strong legal counsel can make a significant difference in the outcome of a case. If you or someone you know faces felony charges, seeking legal counsel is crucial. Contact us today for assistance.
Baltimore has made significant strides in reforming its criminal justice system in recent years. These reforms aim to reduce mass incarceration, promote rehabilitation, and address systemic disparities that disproportionately affect marginalized communities. A key question arises: Have these efforts led to a decrease in felony convictions? The answer is multifaceted.
Recent policy changes, including sentencing reforms and prosecutorial discretion, have led to a measurable decline in felony convictions. Under former Baltimore City state’s attorney, policies were enacted to divert nonviolent offenders away from the court system and focus prosecutorial resources on more serious offenses. According to data from the Maryland Judiciary, the number of felony cases prosecuted has declined, suggesting that many defendants are benefiting from alternative resolutions such as diversion programs and probation agreements.
For individuals facing felony charges, working with an experienced criminal attorney in Baltimore can help with these changes and seek favorable outcomes under the new policies. The Law Offices of Terri D. Mason is prepared to assist clients in understanding their rights and legal options.
Key Reforms Shaping Felony Convictions
Baltimore’s criminal justice system has undergone significant transformations, impacting felony convictions through shifts in sentencing and prosecutorial discretion, as well as drug policy reforms. Here are the key changes in the recent years.
Sentencing and Prosecutorial Discretion
Baltimore has moved toward a more rehabilitative approach to criminal justice, shifting away from excessive prison sentences for nonviolent offenses. The elimination of cash bail for low-income individuals and the expanded use of probation in place of incarceration have significantly impacted how felony cases are resolved. The Baltimore City state’s attorney’s Office has prioritized violent crimes while declining to prosecute certain low-level offenses, leading to a decrease in felony convictions overall (Baltimore City State’s Attorney’s Office).
Drug Policy Reform and Expungement
Drug-related offenses have historically contributed to high felony conviction rates. Recent reforms decriminalizing marijuana possession and reducing sentencing for drug-related felonies have had a major impact. Maryland’s 2023 cannabis legislation legalized the possession of small amounts, reducing felony drug convictions. Additionally, the state expanded expungement eligibility, allowing individuals with prior felony drug convictions to clear their records more easily.
If you or a loved one are dealing with the consequences of a felony conviction, speaking with a skilled criminal lawyer can help you explore options for expungement or reduced sentencing.
Legal Representation in Baltimore’s Justice Shift
As Baltimore continues its criminal justice reforms, having the right legal representation is critical. A knowledgeable criminal attorney can help defendants take advantage of diversion programs, plea agreements, and other legal avenues that may reduce the impact of a felony charge. The Law Offices of Terri D. Mason offers comprehensive criminal defense services and is committed to ensuring clients receive fair treatment under the law.
If you are facing a felony charge, do not leave your future to chance. Contact us today to speak with an experienced criminal attorney in Baltimore who can help protect your rights and pursue the best possible outcome for your case.
Contemplating the future and planning for the distribution of your assets posthumously is a vital component of personal legal planning. In Maryland, it’s legally permissible for anyone to draft their own will, but there are several critical legal stipulations that must be adhered to in order to ensure the will is valid and enforceable. Schedule a consultation with our trust and estate lawyer today to ensure your will meets all legal requirements and accurately reflects your wishes.
Can I Write My Own Will?
Yes, you can write your own will and have it notarized in Maryland. According to Maryland Estates and Trusts Code § 4-102, any person who is at least 18 years old and of sound mental capacity can create their own will. While notarization is not required by law for the validity of a will, it can be beneficial.
Notarization adds a layer of verification to the authenticity of the signature, which can help prevent disputes during the probate process. A notarized will with a self-proving affidavit can also streamline the probate process, allowing the court to accept the will without contacting the signing witnesses.
Legal Requirements for a Valid Will in Maryland
Maryland Estates and Trusts Code (ET) stipulates clear guidelines that must be followed when drafting a will to ensure its validity:
- The Testator’s Capacity: Under ET § 4-101, the individual writing the will, known as the testator, must be at least 18 years old and must be of sound mental capacity at the time of the will’s creation.
- Form of the Will: The will must be written, as stipulated in ET § 4-102. While Maryland law does not mandate that the will be typed, handwritten wills, also known as “holographic wills,” are recognized as long as they satisfy other legal criteria.
- Signature Requirements: According to ET § 4-102, the will must be signed by the testator or by another person in the testator’s presence and at their direction.
- Witnesses: The signing of the will must be witnessed by at least two individuals, as required by ET § 4-102. These witnesses must observe the testator signing the will or hear the testator acknowledge the will and must also sign the will themselves. It’s crucial that these witnesses are not beneficiaries under the will to prevent potential conflicts of interest.
The Importance of Notarization
While notarization is not a prerequisite for the validity of a will in Maryland, it serves a crucial function. A notary public’s role is to verify the authenticity of the signatory’s signature, which can be instrumental in averting disputes about the will’s authenticity. Incorporating a notarized self-proving affidavit with your will can streamline the probate process, allowing the court to accept the will without the need to contact the witnesses who signed it.
Engage With Our Estate Planning Attorney in Baltimore
Drafting a will independently is legally feasible, but consulting with a knowledgeable attorney offers invaluable advantages. A skilled estate planning lawyer can ensure compliance with all statutory requirements and help circumvent potential legal challenges. Additionally, an attorney can provide tailored advice that addresses complex personal circumstances such as intricate family relationships, business interests, or provisions for family members with disabilities.
Writing a will is a critical step in securing your legacy and ensuring your wishes are respected. While you can draft your own will in Maryland, partnering with an experienced attorney ensures that your estate planning achieves its intended objectives. Contact us today to learn how we can assist you with your estate planning needs.
When a loved one passes away, managing their estate becomes a significant responsibility, often assigned to an executor. If you are tasked with this role in Maryland, understanding the potential compensation for your duties is crucial. The Law Offices of Terri D. Mason, P.C. can guide you through the legal aspects of this responsibility.
Understanding Executor Compensation
In Maryland, the compensation for an executor, also known as a personal representative, is a matter taken with considerable flexibility. This role involves managing the deceased’s final affairs, a responsibility that can vary greatly in complexity. The compensation, therefore, is not fixed but varies with the estate’s size and the complexity of tasks involved.
Maryland law provides a framework to help determine a reasonable fee for an executor, as detailed in the Maryland Estates and Trusts Code. Specifically, compensation for executors is generally calculated as a percentage of the estate’s gross value. According to § 7-601 of the Estates and Trusts Article, the standard compensation scheme is as follows:
- 9% on the first $20,000 of the gross estate.
- 3.6% on the balance of the estate over $20,000.
These percentages serve as a guideline; however, the actual fee can be adjusted based on various factors, including the complexity of the estate, the time spent managing the estate, and any special skills or efforts required by the executor.
The specific details of the estate can necessitate deviations from the standard percentages. For instance, if the estate includes a business that needs managing or complex securities that require special handling, the court or the agreement with the beneficiaries may justify a higher fee. Conversely, if the estate is primarily composed of easily liquidated assets, the compensation might be lower.
Court Approval and Beneficiary Agreements
It’s important to note that while these percentages are guidelines, executor compensation in Maryland often requires approval by the Orphans’ Court overseeing the estate proceedings. Executors must file an accounting that includes the proposed fee, and beneficiaries have the right to object to this fee if they deem it unreasonable. The court then makes a determination based on the fairness and reasonableness of the compensation in relation to the work performed.
The compensation agreement may also be set forth directly in the will. If the decedent specified a particular amount or formula for calculating the executor’s fee in their will, that provision takes precedence, provided it is not contested by the beneficiaries or deemed unreasonably low or high by the court.
The role of an executor involves various responsibilities, from paying off debts and taxes to distributing assets according to the deceased’s wishes. Given the significant legal and financial implications, having a skilled estate planning attorney to guide you is invaluable.
Seeking Guidance from an Estate Planning Attorney in MD
Understanding your entitlement as an executor and ensuring the estate is managed correctly can be daunting without proper legal backing. The Law Offices of Terri D. Mason is here to support you with experienced legal counseling tailored to your unique needs in estate and trust management. For more information or to schedule a consultation, visit our contact page today. Let us help you honor your loved one’s legacy with confidence and legal precision.
When someone passes away in Maryland, determining whether their estate must go through probate depends largely on its value. This crucial step can significantly influence the administration of the deceased’s assets. The Law Offices of Terri D. Mason, P.C. offers guidance on this critical aspect of estate planning, helping families and individuals through these important legal processes.
What is Probate?
Probate is the legal procedure through which a deceased person’s estate is properly distributed to heirs and designated beneficiaries and any debts owed are paid off. It involves validating the deceased’s will, appointing an executor or administrator, assessing the estate’s assets, and distributing them as directed by the will or state law if no will exists.
Value Threshold for Probate in Maryland
In Maryland, the requirement for probate is primarily determined by the total value of the deceased’s estate. The Estates and Trusts Article of the Maryland Annotated Code provides specific thresholds:
- Small Estates: For estates valued at $50,000 or less, Maryland law allows a simplified probate process. This threshold increases to $100,000 if the sole heir is the surviving spouse (Md. Code, Estates and Trusts § 5-601 et seq.). These “small estates” benefit from a streamlined process that may not require formal probate, reducing the administrative burden and speeding up the distribution to beneficiaries.
- Regular Estates: Estates exceeding these values must undergo a more comprehensive probate process. This formal probate is more involved and requires a detailed examination of the estate’s assets and liabilities, completion of tax obligations, and adherence to the distribution plan outlined in the will or state law if no will is available.
Understanding these thresholds and the associated legal requirements is crucial for effectively managing estate settlement in Maryland. The Law Offices of Terri D. Mason, P.C. can provide detailed assistance and legal representation to ensure compliance with Maryland probate laws, facilitating a smooth and legally compliant process for settling estates.
How to Determine the Value of an Estate
Determining the value of an estate involves cataloging all assets owned by the deceased at the time of death, including real estate, vehicles, stocks, bonds, and personal belongings. The total value is calculated based on the fair market value of these items. It is crucial for executors and families to get an accurate assessment to ensure compliance with Maryland’s probate laws.
Why Choose the Law Offices of Terri D. Mason for Estate Planning?
At the Law Offices of Terri D. Mason, P.C., our skilled estate planning attorney in Baltimore has extensive experience in handling estate and trust law matters, including guiding clients through the probate process. Whether assisting with estate planning, navigating the probate court, or managing complex legal issues related to disabilities, our firm stands ready to provide thorough and compassionate legal support.
Interested in ensuring your estate is handled according to your wishes? View our related case results to see our success in similar cases. For more detailed information or to schedule a consultation, please contact us today. Protect your legacy with a team that understands your needs and respects your values.
There may be instances where you need to take legal action against an estate in Maryland. Reasons for this can vary widely, from being owed money by the deceased to disputes over the terms of a will or other estate-related disagreements. Understanding the legal framework and your rights is essential for effectively navigating these challenges. If you’re facing such a situation, reach out to the Law Offices of Terri D. Mason, P.C. today for dedicated legal support.
Filing a Claim Against an Estate in Maryland
Under Maryland law, individuals and entities (creditors) who believe that an estate owes them money have the right to file a claim to recover their dues. This process is governed by the Maryland Estates and Trusts Code and is designed to ensure fairness and transparency in settling the deceased’s debts.
Claim Form
The Maryland Register of Wills facilitates this process by providing a “Claim Against Decedent’s Estate” form, which is accessible on their official website. To file a claim, creditors must complete this form with precise details regarding the nature of the debt, the total amount owed, and include supporting documents such as contracts, invoices, or other written agreements that substantiate the claim.
Lawsuit
If the estate’s personal representative (often the executor or administrator) disputes or rejects the claim, the creditor may need to initiate further legal action. This involves filing a lawsuit against the estate, which moves the dispute to the Maryland Orphans’ Court system. This court specifically handles disputes related to the administration of estates and trusts. Engaging in litigation involves several legal procedures, such as proving the validity of the debt and the adequacy of notice given to the creditor.
Given the legal procedures involved, it is crucial to seek legal guidance. An estate planning attorney in Baltimore can help guide these proceedings, ensuring that your claim is presented effectively and your rights are upheld in court. Legal support is crucial in understanding state laws, engaging in negotiations with the personal representative, and, if necessary, presenting a compelling case to the Orphans’ Court.
Time Limits for Claims
Maryland imposes strict deadlines for filing claims against an estate. Generally, creditors have six months from the date of the decedent’s death to file their claims Maryland Estates and Trusts Code, Section 8-103. This timeframe is designed to allow estates to settle their affairs promptly.
However, the law also provides for an additional two-month window if the personal representative sends a formal notice to known creditors, requiring them to present their claims within a specified period, typically not less than two months from the date of the notice. Missing these deadlines can lead to the claim being barred, eliminating the possibility of recovery.
Trust Our Experienced Team
With over 29 years of experience in Maryland law, the Law Offices of Terri D. Mason, P.C. represent individuals in estate and disability-related legal matters. Our skilled estate planning lawyer understands the nuances of estate law and is dedicated to advocating for your rights and ensuring that you receive what you are rightfully owed.
If you are considering filing a claim against an estate, or if you face any disputes regarding estate administration, do not hesitate to seek professional legal help. Our team is equipped to guide you through every step of the process, from filing a claim to litigation if necessary. Take the first step towards resolving your estate-related concerns by contacting the Law Offices of Terri D. Mason, P.C. today.
Estate planning isn’t just for the wealthy. It’s a crucial process that offers peace of mind by ensuring your loved ones are taken care of and your wishes are honored after you’re gone. At the Law Offices of Terri D. Mason, P.C., we’re dedicated to helping you navigate the often confusing world of estate planning. Let’s address some common questions citizens in Baltimore often ask.
What is Estate Planning?
Estate planning encompasses a range of legal tools designed to manage and distribute your assets after your passing. These assets include property, financial holdings, and personal belongings. But estate planning is more than just dividing your assets; it’s about protecting your legacy, ensuring your healthcare decisions are respected, and even planning for potential disability.
Why is Estate Planning Important?
Without a proper estate plan, your assets could be subject to lengthy probate proceedings, potentially causing financial strain and conflict among your heirs. An estate plan gives you control over who receives your assets, minimizing the chances of disputes and ensuring a smooth transition for your loved ones.
What Documents Are Included in an Estate Plan?
The cornerstone of most estate plans is a will, which outlines your wishes for asset distribution. Other crucial documents include:
- Power of Attorney: This authorizes someone you trust to manage your financial affairs if you become incapacitated.
- Advance Healthcare Directive: This specifies your healthcare preferences and designates a healthcare proxy to make decisions on your behalf if you’re unable to do so.
- Trusts: These offer a flexible way to manage and distribute assets, potentially reducing tax burdens and protecting your beneficiaries.
When Should I Start Estate Planning?
Ideally, estate planning should begin as early as adulthood. Life events such as marriage, having children, or acquiring significant assets often necessitate a review and update of your estate plan. However, it’s never too late to start.
Do I Need a Lawyer for Estate Planning?
Consulting an experienced estate planning attorney in Baltimore ensures your plan is comprehensive, legally sound, and tailored to your specific needs. At the Law Offices of Terri D. Mason, P.C., our team is committed to providing personalized guidance throughout the estate planning process.
What are the Estate Tax Implications in Maryland?
Maryland has both an estate tax and an inheritance tax. However, the estate tax exemption is relatively high, meaning most estates won’t be subject to this tax. Inheritance tax, by contrast, depends on the relationship between the deceased and the beneficiary. Understanding these tax implications is crucial for effective estate planning in Maryland.
When Should I Update My Estate Plan?
Regularly reviewing and updating your estate plan is essential. Life events such as marriage, divorce, the birth of a child, or significant changes in your financial situation may necessitate adjustments to your plan. Additionally, changes in Maryland law could also impact your estate plan, making periodic reviews with an attorney crucial.
Ready to Take the Next Step?
Don’t leave your estate planning to chance. Contact the Law Offices of Terri D. Mason, P.C. today to schedule a consultation and embark on a journey towards peace of mind. Our compassionate and experienced team is here to guide you through the intricacies of estate planning in Maryland and create a plan that reflects your unique goals and values.
A power of attorney (POA) is a legal document that grants another person, known as your agent or attorney-in-fact, the authority to act on your behalf in legal and financial matters. There are two primary types of POAs: limited power of attorney (LPOA) and general power of attorney (GPA). Understanding the differences between these two types is crucial when planning for your future. If you need assistance understanding or creating a power of attorney, contact the Law Offices of Terri D. Mason, P.C.
Limited Power of Attorney (LPOA)
An LPOA is a valuable tool for Baltimore residents who need assistance with specific tasks but prefer not to grant broad authority to their agent. Common scenarios where a limited power of attorney might be beneficial include:
- Real Estate Transactions: Whether you are buying or selling property in Baltimore, an LPOA can authorize your agent to handle the necessary paperwork and negotiations on your behalf.
- Managing Finances During Temporary Absences: If you are planning to travel or are temporarily unable to manage your finances due to a medical condition, an LPOA can empower your agent to pay bills, deposit checks, and handle other financial matters.
- Healthcare Decisions: An LPOA can ensure that your medical wishes are respected even if you are temporarily unable to communicate them yourself, allowing your agent to make decisions about your care in Baltimore hospitals and medical facilities.
General Power of Attorney (GPA)
A General Power of Attorney (GPA) is a more comprehensive document that grants your agent broad authority to handle a wide range of your affairs. This type of POA is often used for long-term planning, particularly in situations where you anticipate becoming incapacitated or unable to manage your affairs independently.
Under a GPA, your agent may be authorized to:
- Manage Your Finances: Access and manage your bank accounts, pay bills, and make financial decisions on your behalf.
- Handle Legal Matters: Represent you in legal proceedings, sign contracts, and make decisions about your assets.
- Make Healthcare Decisions: Choose your medical treatment, consent to surgeries, and decide on end-of-life care.
A GPA is often a crucial component of a comprehensive estate plan, ensuring that your affairs are handled according to your wishes even if you are unable to communicate them yourself. However, it is important to choose your agent carefully and trust their judgment, as they will have significant power over your life.
Choosing the Right Power of Attorney for Your Needs
Selecting the most suitable Power of Attorney in Maryland requires careful consideration of your individual circumstances, preferences, and long-term goals. At the Law Offices of Terri D. Mason, P.C., our Baltimore estate planning lawyer recognizes that each client’s situation is unique. Here are some factors to consider when choosing a power of attorney in Baltimore:
- Scope of Authority: Do you need assistance with a specific task (LPOA) or comprehensive management of your affairs (GPA)?
- Duration: Do you need temporary assistance (LPOA) or long-term management (GPA)?
- Trust and Confidence: Are you comfortable granting broad authority to your agent (GPA), or do you prefer a more limited scope (LPOA)?
- Your Individual Needs: Do you have specific concerns, such as managing property in Baltimore, making healthcare decisions, or ensuring your financial affairs are handled in your absence?
The Law Offices of Terri D. Mason: Your Trusted Legal Partner
If you have questions about powers of attorney or need assistance with estate planning, contact the Law Offices of Terri D. Mason, P.C. today. Our dedicated trust and estate lawyer is committed to providing personalized legal services to meet your specific needs. We understand the importance of safeguarding your future, and we’re here to help you every step of the way.
Contact us today to schedule a consultation and learn more about how we can assist you with your legal needs.
An Intentionally Defective Grantor Trust (IDGT) is a unique type of irrevocable trust designed with specific tax advantages in mind, as established under Internal Revenue Code Section 671. While the term “defective” might sound concerning, it’s actually a strategic feature.
In an IDGT, the grantor (the person creating the trust) retains certain powers over the trust, making them liable for its income taxes. This might seem counterintuitive, but it can lead to significant estate and gift tax savings. If you’re seeking to optimize your estate plan, the Law Offices of Terri D. Mason, P.C. can discuss how an IDGT could be a valuable tool for you.
How Does an IDGT Work?
An IDGT is a type of irrevocable trust that allows the grantor to retain certain powers over the trust assets. This means the grantor can still make decisions about how the trust assets are invested and used. However, because the grantor retains these powers, the trust assets are considered part of the grantor’s taxable estate for estate tax purposes.
Despite this, IDGTs can still be a valuable estate planning tool. This is because the grantor can make gifts to the trust without incurring gift taxes. The gifts are considered incomplete for gift tax purposes because the grantor retains some control over the trust assets.
In addition, the income generated by the trust assets is taxed at the grantor’s individual income tax rate, which is often lower than the trust’s tax rate. This can cause significant tax savings.
Finally, IDGTs can be used to protect assets from creditors. This is because the assets in the trust are generally not considered part of the grantor’s estate for creditors’ purposes. Here is an example of how an IDGT can work:
A grantor creates an IDGT and transfers $1 million worth of assets to the trust. The grantor retains the power to make investment decisions for the trust assets. The grantor also retains the power to revoke the trust at any time.
The trust generates $50,000 of income each year. This income is taxed at the grantor’s individual income tax rate, which is 37%. As a result, the grantor pays $18,500 in income taxes on the trust income each year.
The grantor dies five years later. At that time, the trust assets are worth $1.5 million. Because the grantor retained the power to revoke the trust, the trust assets are not included in the grantor’s taxable estate for estate tax purposes. As a result, the grantor’s estate does not owe any estate taxes on the trust assets.
In this example, the IDGT saved the grantor’s estate $525,000 in estate taxes. This is because the grantor was able to make gifts to the trust without incurring gift taxes, and the trust assets were not included in the grantor’s taxable estate for estate tax purposes.
Overall, IDGTs can be a complex but valuable estate planning tool. If you are considering using an IDGT, it is important to consult with an experienced estate planning attorney to discuss whether it is right for you.
Who Should Consider an Intentionally Defective Grantor Trust?
An IDGT might be a suitable estate planning tool for individuals who:
- Have a high net worth and want to minimize estate and gift taxes.
- Own assets that are expected to appreciate significantly.
- Are willing to pay income taxes on trust income in exchange for estate tax benefits.
- Want to provide financial support to their beneficiaries while maintaining some control over the trust assets.
Is an Intentionally Defective Grantor Trust Right for You?
If you are considering an Intentionally Defective Grantor Trust as part of your estate plan, it’s crucial to seek guidance from an experienced estate planning attorney. The Law Offices of Terri D. Mason, P.C., with 29 years of experience, can help you understand the intricacies of IDGTs and determine if they align with your financial goals and family needs. Contact us today to schedule a consultation and explore how an IDGT can benefit your estate plan.