Probate is the legal process of administering the estate of a deceased person, resolving any claims and ultimately distributing the deceased person's property under the declaration of the deceased’s Last Will & Testament. A probate court decides the legal validity of a testator's will and grants its approval by granting probate to the executors. Until such time as probate is granted and after any due taxes have been deducted, the assets and property forming the wealth of the estate, remains locked - out of the reach of any beneficiaries.

Where Should I Keep My Will?

Post category:Estate Administration Estate Planning Probate Wills

A will is only useful if it can be found after death. If misplaced, locked away without access, or accidentally destroyed, the probate court may proceed as if no will exists, distributing assets according to state law rather than the decedent’s wishes. Proper storage balances security and accessibility, ensuring that the document is protected but readily available when needed.

Best Places to Store a Will.

In a Fireproof and Waterproof Safe at Home

A home safe provides security while allowing immediate family access when needed. It should be fireproof and waterproof and placed in a location known to the executor. If the safe requires a key or code, at least one trusted person should have access. Without access instructions, a locked safe can delay probate and require court intervention.

With the Probate Court (Where allowed)

Some states allow individuals to file their will with the local probate court for safekeeping. This ensures that the document is secure and legally recognized. However, this method requires updating the court file when revisions are made. If this step is overlooked, an outdated will may be used in probate.

Registered with The U.S. Will Registry

Registering your will with The U.S. Will Registry helps ensure your loved ones can locate it when needed. Even if you store a physical copy safely, family members may forget its location, misplace it, or accidentally discard it. By registering, you clearly record where your will is stored, preventing unnecessary stress and delays in settling your estate. The U.S. Will Registry also offers free online storage, giving you extra security and peace of mind.

With an Estate Planning Attorney

Some people choose to leave their will with the attorney who drafted it. Law firms typically store wills in fireproof safes, ensuring that the document is secure and intact. If the will’s validity is questioned, an attorney can verify its authenticity. However, this option is only effective if family members or the executor know which attorney holds the will and that the attorney is still in business.

Where Not to Store a Will

In a Bank Safe Deposit Box

While safe deposit boxes provide strong security, they can cause delays. Banks typically seal a box upon the owner’s death, preventing the executor from accessing the will without a court order. If choosing this option, the executor should be listed as a co-owner with access rights.

In an Unsecured Location

A will should not be stored in a desk drawer, filing cabinet, or with other household papers. These locations increase the risk of loss, accidental destruction, or intentional tampering. A digital copy is insufficient, as most states require the original, signed document for probate.

Ensuring the Will Can Be Found

Regardless of where the will is stored, the executor and at least one trusted person should know its location. Keeping instructions in a separate estate planning file and other critical documents ensures the will can be located and used immediately.

Key Takeaways

Proper storage prevents legal complications: The probate court may distribute assets according to state law if a will is lost or inaccessible.
An attorney’s office offers security and authentication: Keeping a will with an estate planning attorney protects it from loss and helps verify its validity.
A fireproof home safe balances security and access: A well-placed, fireproof safe ensures that the will is protected while remaining available to the executor.
Safe deposit boxes can cause probate delays: If an executor cannot access a safe deposit box, a court order may be required to retrieve the will.
Family members must know where the will is stored: Informing the executor and key family members of its location prevents confusion and unnecessary legal delays.

Reference: The U.S. Will Registry (Oct. 24, 2024) “Where to Store Your Will to Ensure its Security”

Update Regarding Corporate Transparency Act and the Beneficial Ownership Information Reporting – December 27, 2024

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We previously shared updates regarding the Corporate Transparency Act (“CTA”), most recently reporting that the injunction against enforcement of the CTA was overturned and deadlines for most filers were extended to January 13, 2024.

We have yet another change to report. Late December 26, 2024, a panel for the Fifth Circuit Court of Appeals reinstated the injunction until it can hear oral arguments from the parties and issue a ruling on the government’s appeal of the original injunction.

We anticipate a ruling and more updates in early January. In the meantime, we continue recommend all parties required to file under the CTA should be prepared to file on short notice after the court’s ruling provides more clarity.

We will continue to monitor the situation and share updates as they become available.

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys

Update Regarding Corporate Transparency Act and the Beneficial Ownership Information Reporting – December 26, 2024

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We are following up on the latest developments regarding the Corporate Transparency Act (CTA) and its implications for beneficial ownership information (BOI) reporting. On December 23, 2024, a significant update came from the Fifth Circuit Court of Appeals, which granted a stay on a preliminary injunction that had previously suspended the CTA’s enforcement. This decision reinstates the obligation for reporting companies to submit beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). However, acknowledging the confusion caused by the temporary suspension, FinCEN has extended the filing deadlines to provide a grace period for compliance. Companies created or registered prior to January 1, 2024, now have until January 13, 2025, to file their initial reports, while those registered between December 3 and December 23, 2024, have an additional 21 days from their original deadline.

We will continue to monitor this development closely and provide updates as they become available. For clients concerned about the implications of this ruling on their business or estate planning, please feel free to contact us.

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys

Update Regarding Corporate Transparency Act – Court REINSTATES Reporting Requirements – December 23, 2024

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This afternoon (December 23, 2024), the United States Court of Appeals for the Fifth Circuit reinstated the enforceability of the Corporate Transparency Act (CTA) effective immediately. In Texas Top Cop Shop, Inc. v. Garland, a three-judge panel of the Fifth Circuit stayed a lower court’s nationwide preliminary injunction against the CTA, which was issued on December 3, 2024. This means that, among other obligations, the January 1, 2025, compliance deadline for reporting companies in existence as of January 1, 2024, is back in effect.

This situation is likely to rapidly evolve. It is entirely likely that in the coming days, the challengers in this case will seek further review from the Fifth Circuit or seek relief from the United States Supreme Court. Additionally, several other federal courts are actively considering challenges against the CTA. At the time of this writing the United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has not publicly released any guidance based on today’s ruling.

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys

Significant Ruling on Corporate Transparency Act Blocking Reporting Requirements Nationwide

Post category:Estate Planning

A recent ruling by the U.S. District Court for the Eastern District of Texas has preliminarily blocked the nationwide enforcement of the Corporate Transparency Act (CTA). This decision impacts businesses nationwide, as the CTA aimed to require U.S. business entities to report stakeholder information to the Treasury Department to combat money laundering and other illicit activities through shell companies. The injunction was issued in response to a lawsuit by Texas Top Cop Shop Inc. and co-plaintiffs, arguing that the CTA oversteps Congress’s constitutional authority to regulate commerce, especially since it applies to entities regardless of their engagement in commercial activities. This ruling halts the implementation of these reporting requirements temporarily, pending further legal proceedings, which could have significant implications for estate planning and business privacy. As a result, individuals are no longer required to file but that may change in the future based on court decisions and agency regulations.

We will continue to monitor this development closely and provide updates as they become available. For clients concerned about the implications of this ruling on their business or estate planning, please feel free to contact us.

[For further reading on the CTA and its implications, see the article here: https://news.bloombergtax.com/daily-tax-report/corporate-transparency-act-blocked-nationwide-by-texas-court ]

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys

Save on Maryland Inheritance Tax if you are in a committed relationship.

Avoid Maryland Inheritance Tax With a Domestic Partnership – Annapolis and Towson Estate Planning

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As of October 1, 2023, Maryland’s Senate Bill 792 introduced a significant legal framework for domestic partnerships, offering couples who choose not to marry a pathway to secure some of the same benefits as married spouses, such as saving on the Maryland Inheritance Tax at death. Awareness of this change in the law will help you make informed decisions about personal relationships, legal protections, and financial planning. Here is what you need to know about registering as domestic partners and the implications of not doing so.

To establish a legal domestic partnership, Maryland Code Estates and trusts Section 2-214 requires two individuals to be at least 18 years old, the sole domestic partner of the other, not married, and in a committed relationship with the other individual.

The process to register a domestic partnership has become more streamlined. Couples seeking to enter a domestic partnership must register their relationship with the Register of Wills in the county in which they are domiciled by filing a signed and notarized declaration form. They also need to pay the appropriate filing fee. Once registered, the relationship will be recognized in all counties regardless of where the partners passed away in Maryland.

Registering as a qualified domestic partnership acts as a legal safety net which guarantees certain benefits during estate administration in Maryland, such as:

Inheritance: Now, a surviving domestic partner inherits in the same manner as a surviving spouse if there is no will, potentially receiving the entire estate if there are no surviving descendants or sharing it equally with minor children of the deceased partner. Without registration, a domestic partner is treated as a legal stranger in the absence of a will, receiving no automatic inheritance rights.
Tax Benefits: Assets inherited from a registered domestic partner are exempt from Maryland’s 10% inheritance tax. Not registering means any inheritance could be subject to Maryland’s inheritance tax, significantly reducing the net inheritance for the surviving partner.
Priority as Personal Representative: Domestic partners have priority to serve as the personal representative of their deceased partner’s estate. Without registration, there is no legal priority for serving as the personal representative of your partner’s estate, which could lead to third parties or family members taking control.
Family Allowance: A surviving registered domestic partner is entitled to a family allowance of $10,000 upon the death of their partner.

In contrast, should one choose not to register as a qualified domestic partnership, in addition to losing the foregoing benefits, they risk a loss of other rights and interests, such as:

Legal Complexity in Termination: While registered partnerships can be legally terminated, unregistered relationships might face more complex legal battles over property or support if they end, especially if there’s no cohabitation agreement.
Lifetime Protections: Registration provides clear legal protections in areas like hospital visitation, which might not be automatically recognized for unregistered partners.
Future Legal Disputes: Without formal registration, disputes over shared property, support, or rights could be more contentious and less predictable in court.
If for any reason a partner needs to terminate the qualified domestic partnership, the State of Maryland requires a signed and filed termination form. This termination will take effect six months from filing, unless the reason for termination was by marriage or death.

Maryland’s new domestic partnership law represents a significant step forward in recognizing and supporting diverse relationship structures. Contact us to schedule a call with one of our experienced estate planning attorneys to guide you through the nuances of the law so you can make an informed decision about entering a domestic partnership and how it affects your legal rights and responsibilities.

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Corporate Transparency Act Creates New Reporting Requirements for Businesses- Annapolis and Towson Estate Planning

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Effective January 1, 2024, the Corporate Transparency Act (the “CTA”) will implement beneficial ownership information reporting requirements for corporations, limited liability companies and other business entities that were created in or are registered to do business in the United States. The CTA requires that certain information about the business’ owners be provided to the Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) and imposes significant penalties for noncompliance.

The purpose of the CTA, which is part of a broader effort by FinCEN to try to crackdown on illegal activity such as money laundering, corruption, tax fraud and terrorist financing, is to provide greater transparency of owner information to try to prevent criminals from hiding illegal property in the United States.

Who is required to file?

Corporations, limited liability companies and other business entities that were created by a filing with a secretary of state or a similar office to create the entity or, for foreign companies, a registration to do business in the United States.

The CTA contains 23 exemptions, mostly for large companies, such as publicly traded corporations, and businesses that the federal government heavily regulates, as these companies are already providing the information to the government.

Limited liability companies created for estate planning purposes must comply with the CTA.

What to file?

A business that is required to report beneficial ownership information under the CTA (called a “reporting company”) will be required to provide:

legal name and any trade name or dba;
address;
jurisdiction in which it was formed or first registered, depending on whether it’s a U.S. or foreign company; and
taxpayer identification number.

For each reporting company’s beneficial owners and each reporting company applicant, the following information with respect to individual owners will also be required:

legal name;
birthdate;
address (in most cases, a home address); and
an identifying number from a driver’s license, passport or other approved document for each individual, as well as an image of the document that the number is from.

There can be up to two individuals who qualify as a reporting company’s applicants:

the individual who directly files the document that creates, or first registers, the reporting company; and
the individual that is primarily responsible for directing or controlling the filing of the relevant document.
A reporting company is only required to report company applicants if it is created or registered on or after January 1, 2024.

When to file?

A reporting company created or registered before January 1, 2024 is required to file before January 1, 2025.
A reporting company created or registered on or after January 1, 2024 is required to file within 30 calendar days of receiving actual or public notice that the company has been created, or upon receipt from your state’s secretary of state or similar office that the company was created or registered, whichever is earlier. FinCEN has reported that it will accept reports electronically beginning January 1, 2024. There is a proposal to extend the time to file for the first year to 90 days, but the extension has not been granted yet.

Please contact us with any questions.

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys

Integrating Digital Assets for Estate Planning- Annapolis and Towson Estate Planning

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Estate planning for digital assets is an increasingly important aspect of overall estate planning due to the growth of online accounts, cryptocurrencies, and other digital assets. It involves organizing and planning for the management and distribution of your digital assets in the event of your incapacity or passing. Here are key considerations and steps to effectively include digital assets in your estate plan:

Take Inventory of Digital Assets: Start by creating a comprehensive list of your digital assets, including:

- Financial Accounts: Online banking, investment accounts, PayPal, etc.
- Social Media and Email Accounts: Facebook, Twitter, Gmail, etc.
- Digital Media: Music, videos, ebooks, etc.
- Cryptocurrencies: Bitcoin, Ethereum, etc.
- Domain Names and Websites: If you own any.
- Online Storage Accounts: Dropbox, Google Drive, etc.

Organize Documentation and Access Information:

- Document account information, login credentials, and any two-factor authentication codes.
- Store this information securely, either in a physical location (like a safe deposit box) or a password manager. Ensure a trusted individual knows how to access this information.

Appoint a Digital Executor:

- Designate a trusted person as your digital executor in your will or estate plan.
- Grant them the authority to access, manage, and distribute your digital assets in accordance with your wishes.

Review Terms of Service Agreements:

- Understand the terms of service for each digital platform or service you use, as they may have specific rules about transferring or accessing accounts after death.
- Comply with any necessary procedures for handling digital assets outlined in these agreements.

Communicate Your Wishes:

- Clearly communicate your wishes regarding digital assets to your loved ones, digital executor, and any other relevant parties.
- Provide guidance on how you want each type of digital asset handled, shared, or preserved.

Regularly Update Your Plan:

- Regularly review and update your estate plan, especially if you acquire new digital assets or change online account information.

Consult with Professionals:

- Seek advice from estate planning attorneys or financial advisors who are knowledgeable about digital asset planning to ensure your plan is thorough and legally sound.

Consider Legal Assistance:

- Depending on the complexity of your digital assets and your overall estate, consult a lawyer specializing in estate planning and digital asset management to ensure your plan is comprehensive and legally binding.

By integrating your digital assets into your estate plan, you can help ensure a smooth transition of your online presence and assets to your chosen beneficiaries and loved ones.

Sims & Campbell, LLC– Annapolis and Towson Estate Planning Attorneys

Empty Nesters: Tips for Moving Closer to Your Kids- Annapolis and Towson Estaet Planning

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As empty nesters approach retirement age, they often start considering moving closer to their adult children to maintain closer family ties. However, as with any move, there are a lot of factors to consider, from choosing the right neighborhood to budgeting for expenses. Here, Sims & Campbell Estates and Trusts outline some of the most important steps empty nesters should take when they’re looking to move closer to their kids.

Consult Your Children

The first step in moving closer to your adult children is to consult with them about their ideas and preferences for the move. It’s important to have an open and honest conversation with your children about your expectations and your reasons for relocating.

You might have one idea about what your move should look like, but your children may have different expectations or ideas. By discussing your plans with your children, you can create a plan that everyone is happy with and that works for everyone’s needs.

Explore Potential Neighborhoods

To find your perfect home, you need to explore potential neighborhoods and areas. This helps you understand the local environment, check out nearby amenities, and get a feel for the area. Visiting these locations can guide you in making an informed decision about which place suits you best.

Get the Scoop from Local Residents

When visiting potential neighborhoods, make sure you talk to local neighbors about the area. This will give you an idea of what it’s really like to live there, and what the community is like. You can ask about things like noise levels, crime rates, and the overall vibe of the community.

Consider Healthcare, Dining, and Transportation Options

Another important consideration when relocating is the availability of healthcare, dining, and transportation. Make sure you spend time researching so you can find the best options for your needs. Healthcare is particularly important for older adults, so make sure you research local healthcare providers in the area, including doctors, dentists, and hospitals.

Navigate Zoning Laws

Before relocating, it’s important to research any laws or regulations that could affect your lifestyle choices. For example, some areas have strict noise ordinances or rules regarding how many pets you can have. Make sure you understand these regulations before you make your move, so you can avoid any unpleasant surprises down the road.

Plan a Budget for Moving-Related Costs

Relocating can be expensive, so make sure you budget for all relocation expenses, including the costs of hiring a moving company, renting a truck, and paying for any storage units. Other expenses to factor in can include closing costs and real estate agent fees. Make sure you have a solid budget in place before you start the moving process.

Decide Whether to Sell or Close Your Business

If you are a small business owner, you’ll need to decide what to do with it when you move. There are two primary options: sell it or close it. You’ll probably want to start by getting an accurate valuation of the business first because the answer might determine your next steps. Then, depending on your business structure, you may need to consult your primary stakeholders. Once you have solidified your plan, be sure to communicate the changes to your customers.

You may also want to consult with Sims & Campbell Estates and Trusts to determine which option is the best for your current and future financial needs.

Researching Nearby Services

As we age, it’s common for us to require more help with daily tasks. When relocating, be sure to research nearby services like housekeeping, personal care aides, and meal delivery, in case you need them later on. Knowing what’s available for you in advance can make a huge difference in your quality of life and peace of mind.

Stay Organized by Digitizing Your Documents

Digitizing your documents is a practical way to stay organized during a move, as it enables you to access important files quickly and eliminates the need to carry around physical copies. Saving documents as PDFs allows for easy sharing, printing, and viewing on any device, while preserving the original formatting and layout of the document.

Consider Relocating

For empty nesters who are considering relocating to be closer to their adult children, there are a lot of factors to consider. From choosing the right neighborhood to budgeting for expenses, it’s important to do your research ahead of time. By following the steps outlined above, taking the time to thoroughly plan and prepare, and digitizing documents, empty nesters can create a seamless and enjoyable relocation experience.

At Long Last, Trial Leads to Final Decision on Aretha Franklin’s Will- Annapolis and Towson Estate Planning

Post category:Elder Law Attorney Estate Planning Executor Probate Will Contests Wills

The trial over the Queen of Soul’s estate is over. The jury’s decided that the 2014 will, secreted under a couch cushion, is the valid will. The title of a recent article from CNBC says it all: “Longtime Aretha Franklin estate battle shows the importance of having a proper will.” You need a will and an estate plan, even if you’re not a celebrity.

Aretha Franklin died in 2018; at first, no one even knew she had a will. Two handwritten wills then were found. Franklin was a resident of Michigan, where handwritten or “holographic” wills are legally permissible. The question was, which of the two wills were valid?

Everyone needs a will, a legal document detailing their wishes to distribute assets and property upon death. Parents with minor children use wills to nominate a legal guardian for their children, and the will is also used to name an executor to be in charge of carrying out the directions in the will.

When someone dies without a will, they have passed “intestate.” When this happens, state law dictates how an estate is distributed.

Franklin had two handwritten wills, one in 2010 and the second in 2014. Both were found in her Detroit home months after her death. She had four sons, and the legal dispute was between her sons, who disagreed over which handwritten will should govern her estate. There were significant differences between the documents.

The more recent will generally take precedence over an older one. However, a handwritten will can go wrong in many ways. The lengthy estate battle over Franklin’s will exemplifies why everyone needs a properly prepared will.

Some assets don’t pass through the will, such as those with beneficiary designations. If property is owned in “joint tenancy,” where two or more people own property together, the surviving party inherits the property.

How assets are titled governs their distribution. For instance, assets held in a trust are owned by the trust, and the trustee will distribute assets according to the language in the trust.

When someone dies, the executor presents the will to the court as part of a probate proceeding. The will and its contents become a matter of public record. Anyone who wants to see the will can, which is why many people prefer to use trusts, which are private.

If you don’t have a will, meet with an estate planning attorney, and start the process. If your will is over five years old, it’s time for an update.

Reference: CNBC (July 11, 2023) “Longtime Aretha Franklin estate battle shows the importance of having a proper will”

Sims & Campbell, LLC- Annapolis and Towson Estate Planning Attorneys

Where Should I Keep My Will?

Best Places to Store a Will.