5 Essential Estate Planning Guides for Maryland Families


Blog 1: The Complete Guide to Maryland's Two Death Taxes: What Every Family Needs to Know


Published by Yeo Jin Chun, Esq. | 2025 | 7-minute read

In This Article:

  • Maryland's dual death tax system explained
  • How to calculate your potential tax liability
  • Step-by-step strategies to minimize or eliminate both taxes
  • Why married couples face a special "$5 million trap"
  • Real examples of families who saved hundreds of thousands

Key Takeaway: Maryland imposes both an estate tax (on estates over $5M) and an inheritance tax (10% on non-family), but proper planning can significantly reduce or eliminate both.


If you're like most Maryland residents, you know the state has some form of "death tax," but you're not sure how it works or whether it affects you. Here's what might surprise you: Maryland has not one, but TWO death taxes, and they work completely differently. Understanding these taxes could save your family hundreds of thousands of dollars.

Maryland's Double Tax System

1. The Maryland Estate Tax

The Maryland estate tax applies to estates valued over $5 million (as of 2025). Here's the critical part most people miss: like federal law, Maryland offers portability between spouses.

Real-world impact: A married couple with $8 million in assets could owe $0 in Maryland estate tax with proper planning, or $300,000 without it.

2. The Maryland Inheritance Tax

This is the sneaky one. Maryland charges 10% on inheritances to anyone who isn't:

  • Your spouse
  • Your children (including legally adopted)
  • Your grandchildren
  • Your parents or grandparents
  • Your siblings

Common scenarios that trigger the tax:

  • Leaving assets to nieces or nephews
  • Gifts to unmarried partners
  • Bequests to friends
  • Inheritance by stepchildren (unless legally adopted)

Step-by-Step Guide to Minimize Maryland Death Taxes

Step 1: Calculate Your Current Estate Value

Add up:

  • Your home's current market value
  • All bank and investment accounts
  • Retirement accounts (401k, IRA, etc.)
  • Life insurance death benefits
  • Business interests
  • Personal property of value

Don't forget: Your estate might be larger than you think. That $750,000 house plus $1 million in retirement accounts plus $500,000 in life insurance already puts you at $2.25 million.

Step 2: Identify Your Tax Exposure

  • Over $5 million? You need estate tax planning
  • Leaving assets to non-exempt people? You need inheritance tax planning
  • Married with over $5 million? You urgently need portability planning

Step 3: Implement the Right Strategy

For estates over $5 million:

  • A/B Trust structure preserves both spouses' exemptions
  • Disclaimer trusts provide flexibility
  • QTIP trusts work well for blended families

For inheritance tax planning:

  • Life insurance can cover the tax burden
  • Lifetime gifting (Maryland has no gift tax!)
  • Trust structures to minimize impact

Step 4: Review and Update Regularly

Tax laws change, asset values fluctuate, and family situations evolve. Review your plan:

  • Every 3-5 years
  • After major life events
  • When tax laws change
  • If you move to/from Maryland

The Bottom Line

Maryland's two death taxes can take a massive bite out of your legacy, but with proper planning, most families can significantly reduce or eliminate these taxes. The key is understanding the rules and planning accordingly—before it's too late.




Blog 2: Power of Attorney in Maryland: The 5-Step Process to Protect Your Future


Published by Yeo Jin Chun, Esq. | 2025 | 6-minute read

In This Article:

  • Why every Maryland adult needs both financial and healthcare POAs
  • 5-step process to create bulletproof powers of attorney
  • Maryland's specific legal requirements and common mistakes
  • How to choose the right agent and backup agents
  • What happens without POAs (hint: expensive guardianship)

Key Takeaway: A properly drafted Maryland Power of Attorney costs a fraction of guardianship proceedings ($5,000-$15,000) and can be completed in one day.


Imagine this: You're in a serious car accident tomorrow. While you're recovering in the hospital, who pays your mortgage? Who talks to your doctors? Who manages your business? Without a Power of Attorney, your family faces an expensive, time-consuming guardianship process. Here's your complete guide to avoiding this nightmare.

What is a Power of Attorney?

A Power of Attorney (POA) is a legal document that names someone you trust (your "agent") to make decisions for you if you can't make them yourself. Maryland recognizes two main types:

  1. Financial Power of Attorney - for money and property decisions
  2. Healthcare Power of Attorney - for medical decisions

The 5-Step Process to Create Your Maryland POA

Step 1: Choose the Right Type

Financial POA Options:

  • Immediate: Takes effect as soon as you sign
  • Springing: Only activates upon your incapacity
  • Limited: For specific transactions only
  • Durable: Continues during incapacity (most common)

Healthcare POA Features:

  • Always "springing" (only when you can't decide)
  • Must use Maryland's specific format
  • Includes HIPAA authorization
  • Can include end-of-life preferences

Step 2: Select Your Agent(s)

Qualities to look for:

  • Trustworthy and responsible
  • Lives nearby (ideally)
  • Good with finances (for financial POA)
  • Shares your values (for healthcare POA)
  • Willing to serve

Pro tip: Name alternates! Your first choice might be unavailable when needed.

Step 3: Define the Powers

Financial POA should include:

  • Banking transactions
  • Bill paying
  • Tax matters
  • Real estate dealings
  • Investment management
  • Business operations
  • Digital asset access
  • Safe deposit box access

Maryland-specific requirement: If you want your agent to make gifts, you MUST specifically authorize this power.

Step 4: Execute Properly

Maryland Requirements:

  • Must be signed by you (the "principal")
  • Must be notarized
  • No witness requirement (but recommended)
  • Agent should sign acceptance

Common mistake: Using an out-of-state form. Maryland institutions may reject POAs that don't comply with Maryland law.

Step 5: Distribute and Store

Who gets copies:

  • Your agent (original or copy)
  • Alternate agents (copy)
  • Your attorney (copy)
  • Key family members (location info)

Where to store:

  • Fireproof safe at home
  • Safe deposit box (with agent access)
  • Attorney's office
  • Digital copy in secure cloud

Maryland-Specific Considerations

Statutory Form

Maryland provides an optional statutory form for Financial POA (Estates & Trusts Code § 17-202). While not required, using this form ensures acceptance by Maryland institutions.

Healthcare Decisions

Maryland combines the Healthcare POA with Advance Directives in a single document. This covers:

  • Medical treatment decisions
  • End-of-life care preferences
  • Organ donation wishes
  • Appointment of healthcare agent

Agent Protections

Maryland law protects agents who act in good faith. They're not liable for:

  • Declining property values
  • Good faith mistakes
  • Following your instructions

When to Update Your POA

Review and potentially update when:

  • Your agent dies or becomes incapacitated
  • You marry or divorce
  • You move to/from Maryland
  • Your relationship with your agent changes
  • Every 5-10 years regardless

The Cost of Not Having a POA

Without proper POAs, your family faces guardianship proceedings:

  • Cost: $5,000-$15,000 in legal fees
  • Time: 3-6 months minimum
  • Privacy: Public court proceedings
  • Control: Judge chooses who decides
  • Ongoing: Annual reporting requirements

Take Action Today

A Power of Attorney is one of the most important documents you'll ever sign. It costs a fraction of guardianship proceedings and provides immediate protection for you and your family.



Blog 3: How to Fund Your Living Trust in Maryland: A 7-Step Guide

Published by Yeo Jin Chun, Esq. | 2025 | 8-minute read

In This Article:

  • Why 60% of living trusts fail (unfunded = useless)
  • 7-step process to properly fund your Maryland trust
  • How to transfer each type of asset (with Maryland-specific tips)
  • Common funding mistakes that trigger probate anyway
  • Bank-by-bank instructions for Maryland institutions

Key Takeaway: An unfunded trust is worthless. This guide shows you exactly how to transfer every asset type to ensure your trust actually avoids probate.



You've spent time and money creating a living trust to avoid probate and protect your family. But here's a shocking statistic: Over 60% of living trusts fail to avoid probate because they're not properly funded. Don't let your trust become an expensive pile of paper. Here's exactly how to fund your trust in Maryland.

What Does "Funding Your Trust" Mean?

Funding your trust means transferring ownership of your assets from your individual name to your trust's name. Think of your trust as a treasure chest—it only protects what's inside it. Assets left outside the trust still go through probate.

The 7-Step Trust Funding Process

Step 1: Create Your Trust Inventory

List ALL your assets:

  • Real estate (primary home, vacation properties, rentals)
  • Bank accounts (checking, savings, CDs)
  • Investment accounts (brokerage, mutual funds)
  • Retirement accounts (special rules apply!)
  • Life insurance policies
  • Business interests
  • Vehicles
  • Valuable personal property

Maryland tip: Don't forget your Chesapeake Bay boat or Ocean City condo!

Step 2: Retitle Real Estate

Process:

  1. Prepare new deed transferring property to trust
  2. Have deed notarized
  3. Record with county land records
  4. Update property insurance

Maryland-specific issues:

  • Each county has different recording fees
  • Transfer tax exemptions available for revocable trusts
  • Some counties require specific forms
  • Update your homestead tax credit

Warning: If you have a mortgage, notify your lender first. Most allow transfers to revocable trusts, but get confirmation in writing.

Step 3: Transfer Bank Accounts

Two options:

  1. Retitle existing accounts (preferred)
  • Visit branch with trust documents
  • Complete bank's forms
  • Update signature cards
  1. Open new trust accounts
  • Establish accounts in trust name
  • Transfer funds from individual accounts
  • Close old accounts

What to bring:

  • Trust document (or Certification of Trust)
  • Photo ID
  • Tax ID number (usually your SSN for revocable trusts)

Step 4: Move Investment Accounts

Process varies by institution:

  • Some retitle existing accounts
  • Others require new accounts
  • Most need medallion signature guarantee

Important: Transferring investment accounts is NOT a taxable event for revocable trusts. Don't let anyone tell you otherwise.

Step 5: Handle Retirement Accounts Carefully

DO NOT retitle retirement accounts! This triggers immediate taxation.

Instead:

  • Name trust as beneficiary (sometimes)
  • Usually better: Name spouse as primary, trust as contingent
  • Consider tax implications
  • Get professional advice for large accounts

Maryland consideration: State income tax on retirement distributions affects planning.

Step 6: Update Life Insurance Beneficiaries

Options:

  1. Trust as primary beneficiary (asset protection)
  2. Trust as contingent beneficiary (flexibility)
  3. Irrevocable Life Insurance Trust (estate tax planning)

Process:

  • Contact insurance company
  • Complete beneficiary change form
  • Specify trust name exactly
  • Keep confirmation

Step 7: Don't Forget Personal Property

For valuable items:

  • Sign general assignment document
  • List specific items in trust schedule
  • Update insurance policies
  • Consider appraisals

Maryland assets often missed:

  • Boat documentation
  • Gun collections
  • Art and antiques
  • Season tickets (Ravens, Orioles)

Common Maryland Trust Funding Mistakes

Mistake 1: Forgetting Digital Assets

  • Online banking access
  • Investment platforms
  • Cryptocurrency wallets
  • Digital business assets

Solution: Create digital asset inventory with access instructions.

Mistake 2: Joint Account Confusion

  • Joint accounts pass by survivorship, not trust
  • May need to retitle after first death
  • Consider trust ownership instead

Mistake 3: Missing Assets

  • Safe deposit box contents
  • Storage unit items
  • Out-of-state property
  • Timeshares

Trust Funding Timeline

Immediately after signing:

  • Sign general assignment
  • Update life insurance beneficiaries
  • Begin real estate transfers

Within 30 days:

  • Transfer bank accounts
  • Start investment account process
  • Contact mortgage companies

Within 60 days:

  • Complete all transfers
  • Verify with attorney
  • Store documentation

Maintaining Your Funded Trust

Annual review:

  • New accounts opened in trust name?
  • Major purchases titled correctly?
  • Beneficiaries still current?
  • Any assets need updating?

After major purchases:

  • Take title in trust name
  • Update insurance
  • Keep documentation

The Bottom Line

An unfunded trust is like a safe with the door open—it doesn't protect anything. Proper funding takes effort, but it's the difference between a trust that works and expensive probate proceedings. Don't let your planning go to waste.




Blog 4: Maryland Advance Directives: Your Step-by-Step Guide to Medical Decision Making

Published by Yeo Jin Chun, Esq. | 2025 | 6-minute read

In This Article:

  • Maryland's 3-part advance directive form explained
  • How to choose healthcare agents who will honor YOUR wishes
  • Specific medical scenarios to address in your directive
  • Proper execution requirements (witnesses, distribution)
  • The difference between advance directives and MOLST forms

Key Takeaway: Maryland's advance directive takes 30 minutes to complete but ensures your medical wishes are followed and saves your family from making impossible decisions without guidance.


What happens if you're in an accident and can't speak for yourself? Who decides about life support? What about pain medication? In Maryland, without proper advance directives, your family faces heartbreaking decisions without guidance. Here's your complete guide to maintaining control over your medical care.

Understanding Maryland's Advance Directive Law

Maryland combines several documents into one comprehensive form:

  1. Appointment of Healthcare Agent (Part I)
  2. Treatment Preferences (Part II)
  3. Organ Donation (Part III)

This isn't just paperwork—it's your voice when you can't speak.

Step-by-Step Guide to Creating Your Advance Directive

Step 1: Choose Your Healthcare Agent

This person makes medical decisions if you can't.

Selection criteria:

  • Someone who remains calm under pressure
  • Willing to honor YOUR wishes (not impose theirs)
  • Available and local (ideally)
  • Comfortable talking to doctors
  • Not your doctor or healthcare provider (Maryland law prohibition)

Pro tip: Choose someone who will advocate for you, even if family disagrees.

Step 2: Select Alternate Agents

Life happens. Your primary agent might be:

  • Traveling when needed
  • Ill themselves
  • Emotionally unable to serve
  • Deceased

Name at least two alternates in order of preference.

Step 3: Define Your Treatment Preferences

Maryland's form addresses:

  • Life-sustaining procedures
  • Artificial nutrition and hydration
  • Pain management
  • Comfort care

Key decisions to consider:

  • Terminal condition: Want life support if you're dying anyway?
  • Persistent vegetative state: Continue treatment if permanently unconscious?
  • End-stage condition: Aggressive treatment for irreversible conditions?

Important: You can be specific! Don't just check boxes—add personal instructions.

Step 4: Address Organ Donation

Options:

  • Donate any needed organs/tissues
  • Donate only specific organs
  • No donation
  • Let agent decide

Maryland note: This overrides your driver's license designation.

Step 5: Add Personal Instructions

Consider including:

  • Religious or spiritual preferences
  • Preferred location of care (home vs. hospital)
  • Specific treatments you do/don't want
  • Music, visitors, clergy preferences
  • Messages to loved ones

Step 6: Execute Properly

Maryland requirements:

  • Your signature (or direction to sign)
  • Two witnesses present
  • Witnesses must sign

Who CAN'T be witnesses:

  • Your healthcare agent
  • Anyone who'd inherit from you
  • Your healthcare providers
  • Employees of your healthcare facility

Step 7: Distribute Widely

Who needs copies:

  • Primary care physician
  • Specialists you see regularly
  • Local hospital
  • Healthcare agent
  • Alternate agents
  • Close family members
  • Clergy (if applicable)

Storage tips:

  • Keep original accessible (not in safe deposit box)
  • Post location note on refrigerator
  • Carry wallet card with agent info
  • Upload to Maryland MOLST registry

Maryland-Specific Considerations

MOLST Forms

For seriously ill patients, Maryland offers MOLST (Medical Orders for Life-Sustaining Treatment):

  • Physician orders (not just preferences)
  • Bright pink form
  • Complements advance directives
  • Follows you across care settings

Healthcare Facility Requirements

Maryland facilities must:

  • Ask if you have advance directives
  • Include copy in medical record
  • Honor valid out-of-state directives
  • Follow your instructions

Mental Health Treatment Preferences

Maryland allows separate advance directives for mental health treatment:

  • Preferred medications
  • Facilities preferences
  • Treatment approaches
  • ECT decisions

Common Mistakes to Avoid

Mistake 1: Being Too Vague

❌ "Do what's best" ✅ "If I'm in a permanent vegetative state with no hope of recovery, discontinue life support after 30 days"

Mistake 2: Not Discussing with Agent

Your agent needs to understand:

  • Your values and beliefs
  • Specific preferences
  • How to interpret gray areas
  • Permission to make hard choices

Mistake 3: Forgetting Updates

Review when:

  • You marry/divorce
  • Your agent dies/moves
  • Your health status changes
  • Your preferences change
  • Every 5 years regardless

Real-Life Scenarios

Scenario 1: Stroke with potential recovery

  • Some chance of meaningful recovery
  • Requires ventilator temporarily
  • Decision: How long to try?

Scenario 2: Advanced Alzheimer's

  • No longer recognizing family
  • Develops pneumonia
  • Decision: Aggressive treatment or comfort care?

Scenario 3: Severe accident

  • Young person, previously healthy
  • Extensive injuries, coma
  • Decision: How much intervention?

Your advance directive guides these impossible decisions.

The Cost of Not Having Advance Directives

Without directives:

  • Family conflicts over treatment
  • Court intervention possible
  • Unwanted aggressive treatment
  • Enormous guilt for decision-makers
  • Potential financial ruin from unwanted care

With directives:

  • Your wishes followed
  • Family has guidance
  • Reduced conflict
  • Appropriate care level
  • Peace of mind for all

Take Action Today

Don't leave your family guessing during the worst moment of their lives. Maryland's advance directive form takes 30 minutes to complete but provides a lifetime of protection.




Blog 5: Protecting Your Business Legacy: A Maryland Business Owner's Estate Planning Guide

Published by Yeo Jin Chun, Esq. | 2025 | 7-minute read

In This Article:

  • Why 70% of family businesses fail at succession
  • 7-step process to protect your business legacy
  • Maryland tax strategies for business owners
  • Funding options for buy-sell agreements
  • Real success story: Baltimore company saves $300K in taxes

Key Takeaway: Without proper succession planning, your business could die with you, triggering massive taxes and destroying your legacy. This guide shows Maryland business owners exactly how to protect what they've built.


You've spent years building your business. It's not just your livelihood—it's your legacy. But without proper planning, your business could die with you, leaving your family with a mess instead of a meaningful inheritance. Here's your step-by-step guide to protecting your business through Maryland estate planning.

The Shocking Reality

Consider these statistics:

  • 70% of family businesses don't survive to the second generation
  • 90% don't make it to the third generation
  • #1 reason for failure: Poor succession planning

In Maryland, add estate taxes and probate complications, and your business faces even steeper odds.

Step 1: Value Your Business Properly

Get Professional Valuation

Why it matters:

  • Estate tax calculations
  • Buy-sell agreement pricing
  • Family fairness
  • Insurance needs

Maryland consideration: Your business might push your estate over the $5 million Maryland estate tax threshold.

Valuation Methods

  • Asset-based approach
  • Income approach
  • Market approach
  • Hybrid methods

Tip: Get valuation discounts for:

  • Minority interests
  • Lack of marketability
  • Key person dependency

Step 2: Choose Your Succession Strategy

Option A: Family Succession

Best when:

  • Children work in business
  • They have necessary skills
  • They want the responsibility
  • Family dynamics allow

Structure options:

  • Outright transfer
  • Trust ownership
  • Gradual buyout
  • Earning provisions

Option B: Key Employee Buyout

Advantages:

  • Continuity for customers
  • Motivated buyers
  • Financing available
  • Preserves legacy

Funding mechanisms:

  • Installment sales
  • Life insurance
  • Bank financing
  • Seller financing

Option C: Third-Party Sale

Considerations:

  • Maximize value
  • Clean break
  • Due diligence period
  • Non-compete agreements

Option D: Liquidation

Sometimes necessary when:

  • No viable successors
  • Business depends on you
  • Industry declining
  • Better value in assets

Step 3: Implement Legal Structures

Buy-Sell Agreements

Essential provisions:

  • Triggering events (death, disability, retirement)
  • Valuation method
  • Payment terms
  • Transfer restrictions

Maryland must-haves:

  • Address estate tax liability
  • Spousal consent provisions
  • Assignment to trust provisions

Business Trusts

Benefits:

  • Centralized management
  • Creditor protection
  • Estate tax planning
  • Flexibility

Common structures:

  • Revocable trusts (control)
  • Dynasty trusts (generations)
  • Grantor trusts (tax benefits)
  • Voting/non-voting shares

Entity Restructuring

Consider:

  • LLC vs. corporation
  • Voting/non-voting units
  • Preferred interests
  • Management structures

Step 4: Fund Your Plan

Life Insurance Strategies

Uses:

  • Buy-out funding
  • Estate liquidity
  • Equalizing inheritances
  • Tax payment

Ownership structures:

  • Business-owned
  • Cross-purchase
  • Hybrid arrangements
  • Insurance LLC

Installment Sales

Benefits:

  • Spread out taxes
  • Provide retirement income
  • Maintain some control
  • Help buyer afford purchase

Maryland note: Structure carefully for state tax efficiency.

Employee Stock Ownership Plans (ESOPs)

Advantages:

  • Tax benefits
  • Employee motivation
  • Seller liquidity
  • Legacy preservation

Step 5: Protect During Transition

Key Person Planning

Identify and protect:

  • Critical employees
  • Customer relationships
  • Vendor connections
  • Trade secrets

Tools:

  • Employment agreements
  • Non-compete clauses
  • Retention bonuses
  • Key person insurance

Operating Agreements

Update to address:

  • Death/disability provisions
  • Management succession
  • Voting requirements
  • Transfer restrictions

Step 6: Address Tax Planning

Maryland Estate Tax

Business strategies:

  • Valuation discounts
  • Gifting programs
  • Trust structures
  • Charitable planning


Federal Considerations

  • Estate tax ($13.61M exemption 2025)
  • Gift tax integration
  • Generation-skipping tax
  • Income tax basis step-up

Step 7: Communicate Your Plan

Family Meeting Agenda

  1. Your vision for business
  2. Succession timeline
  3. Roles and expectations
  4. Financial implications
  5. Support during transition

Key Employee Discussion

  • Future opportunities
  • Incentive plans
  • Transition timeline
  • Their role in succession

Documentation Needed

  • Updated will/trust
  • Buy-sell agreement
  • Employment contracts
  • Operating agreement changes
  • Insurance policies

Common Maryland Business Succession Mistakes

Mistake 1: Ignoring Maryland's Two-Tax System

  • Estate tax at $5M
  • Inheritance tax on non-family
  • Business could trigger both

Mistake 2: Poor Timing

  • Waiting too long
  • Not grooming successors
  • Rushed decisions
  • Market timing issues

Mistake 3: Family Conflicts

  • Unequal treatment
  • Unclear roles
  • Compensation disputes
  • Control battles

Real Maryland Success Story

The Situation:

  • Baltimore manufacturing company
  • $8 million value
  • Three children (one in business)
  • Potential $300K Maryland estate tax

The Solution:

  • Restructured with voting/non-voting shares
  • Active child got voting control
  • Life insurance for equal inheritance
  • Trust structure saved Maryland tax

The Result:

  • Business thriving in second generation
  • Family harmony preserved
  • Zero estate tax paid
  • Jobs preserved

Your Action Plan

  1. This Month: Get business valued
  2. Next Month: Meet with attorney and CPA
  3. 90 Days: Implement legal structures
  4. 6 Months: Fund succession plan
  5. Annually: Review and update

The Bottom Line

Your business is more than an asset—it's your life's work. Don't let poor planning destroy what you've built. With proper Maryland estate planning, your business can survive and thrive for generations.