Estate planning - How did you set up yours?

[Nicole A.]

Hey folks! My partner and I are in the middle of estate planning. To note, we do have an attorney selected, but I'd love to hear what others on this site have done in their own estate planning. It definitely has a lot of details, options, and loopholes to know about!

First, I've realized that good ol' Maryland is just one of two states in the US that has an "inheritance tax" for any non primary residence property that a beneficiary inherits. It is 10%. In addition, if you leave your primary residence to someone other than siblings, children, or spouse, they too are taxed. So, your niece and nephew will get taxed if they inherit your MD property.

Next, my partner and I are an unmarried couple. Currently, our personal home is titled in Joint Tenancy. Our rental properties are titled in our LLC name. We each are 50/50 owners of the LLC. We are dabbling with the idea of forming and funding a Trust. How would this affect the properties currently held in our LLC?

Next, did you set up your estate documents to be written in a way that includes future assets acquired or must you update the documents with each purchase of new property/assets?

I feel like a newbie all over again! Tell me your thoughts and experiences on estate planning when it comes to multiple properties, properties held in Trusts, and so on!

[Bernard Reisz]

@Nicole A.

Assets held in trust have to be properly titled to be held in the trust. A "pour-over will" can get assets into the trust but will be subject to probate. Are you referring to revocable or irrevocable trusts? What are the objectives of the estate plan? Would the estate be subject to federal transfer tax?