Foundational Estate Planning Attorney in Maryland

Some people are under the impression that estate planning is only for billionaires and celebrities, the so-called one percent. The truth is that virtually everyone can benefit from having an estate plan of their own, one prepared by an attorney who focuses on this specialized and complex area of the law. Why? For one thing, an estate plan allows you to control how and when your assets are distributed after you pass away. Without a plan, the government will decide “who gets what” based on strict formulas that have nothing to do with what you would have wanted. Similarly, without a plan you will be unable to control who can make crucial financial and medical decisions on your behalf if you become incapacitated.

These are but two examples of what a properly drafted and implemented estate plan can help you accomplish. Depending on your particular needs and goals, we can design a plan that allows you to:

  • Choose who will raise your minor children if something happens to you and your spouse
  • Control your medical care and financial decisions in the event of incapacity
  • Protect your assets against threats like long-term care costs, divorce, lawsuits, creditors, and more
  • Protect your children’s inheritances if they are not yet responsible enough to manage money on their own
  • Prevent family disputes about your care if you become incapacitated, and prevent disputes about assets after your death
  • Leave a lasting legacy

To accomplish these and other goals, we can utilize a wide range of strategies and tools. Let’s take a closer look at some of the most frequently used estate planning tools.

Last Will and Testament

In many ways your Will is the cornerstone of your estate plan. For example, it governs the dispersal of your assets after you pass away. If you die without a Will, your assets will be distributed according to formulas created by the state in which you resided. This means your assets could wind up going to people you never would have wanted to receive them. Your

Will also allows you to choose a guardian for your minor children, ensuring they will be raised by someone you trust if you and your spouse pass away before your children turn 18. It is important to note that a Will does not allow your estate, nor your heirs, to avoid the delays, frustration, and expense of probate. This can be accomplished with additional tools, such as Trusts. Nevertheless, every estate plan should include a Will.

Testamentary and Revocable Living Trusts

A Trust can provide you and your family with a wide range of benefits even if you are not subject to estate taxes. Whether the Trust is established at death (a Testamentary Trust), or during your lifetime (a Living Trust), it allows you to control when, how, and to what purpose your assets are passed on to future generations.

A Living Trust has other advantages as well. It allows your estate to avoid the public, time-consuming, and needlessly expensive probate process. In addition, it ensures you have complete control of your assets while you are alive and after you pass away.

Medical Directive

A Medical Directive, also known as a Durable Power of Attorney for Health Care, is an essential part of any estate plan. In Maryland and other jurisdictions it serves two purposes. First, it acts as a Living Will, specifying the medical treatments you want (or do not want) to keep you alive if you are near death or in a vegetative state without any hope of recovery. (Two medical professionals, one of whom is typically your attending physician, must determine that you are near death or in a permanently vegetative state.)

Second, your Medical Directive will designate who you want to make medical decisions for you if you are incapable of expressing your wishes. This could be the case if you are unconscious or you do not have the legal capacity to make decisions on your own. By outlining your wishes in your Medical Directive, you spare your loved ones from having to make difficult choices about your care without knowing what you would have wanted. Such a situation often leads to disagreements and family in-fighting. Your Medical Directive also helps your physicians provide you with appropriate care.

Certain jurisdictions, such as the District of Columbia, recognize the validity of Living Wills. In these jurisdictions, you may want to have both a Durable Power of Attorney for Health Care and a Living Will.

Power of Attorney for Property

A Power of Attorney is a legal document that allows you to name one or more individuals to make decisions about your property. If the Power of Attorney is drafted improperly, the named individual’s “power” may end if you (the person who granted the power) become mentally or physically incapacitated. To ensure this doesn’t happen, it may be advisable to utilize a Durable Power of Attorney, which is valid in the event of incapacity, or a Springing Power of Attorney, which only takes effect if you become incapacitated.

A Power of Attorney’s validity ends when you pass away. It can’t be used to avoid probate or transfer assets. Additionally, some financial institutions won’t honor a Power of Attorney unless it is drafted on their forms. A Power of Attorney that is drafted too “broadly” can also be abused, thereby putting your hard-earned assets at risk. While we often recommend Powers of Attorney, we are well aware of their potential weaknesses and counsel our clients accordingly.

HIPAA Authorization

The Health Insurance Portability and Accountability Act (HIPAA) created national standards to safeguard the privacy of a patient’s medical information. HIPAA mandates that insurance companies and health care providers are subject to criminal penalties, civil fines, and even imprisonment for releasing a patient’s medical information to unauthorized parties. Although most people would agree that it is important to keep medical information private, HIPAA has created a number of problems for patients and members of their family. Why? The penalties for violating HIPAA frequently make health care providers reluctant to share medical information with family members, spouses, children, and other loved ones—even in medical emergencies.

A HIPAA authorization allows you to specify precisely who can access your medical information. This helps ensure your loved ones can get information about your condition in an emergency and are therefore able to provide you with support when you need it most.

Work with an Experienced DC Estate Planning Attorney

With more than 35 years of experience as an attorney, Clifford M. Cohen is eminently qualified to help you and your family achieve the peace of mind that comes from having a comprehensive plan in place for the future. We invite you to contact our offices today at (202) 845-7036 for a free consultation to discuss your particular needs and goals.