Bobby’s Blog

Dying Without a Will in Maryland, Virginia or D.C. – Understanding the Differences in the DMV

There is an area known as the “DMV”, which is a nifty acronym for the District of Columbia, Maryland, and Virginia. People who reside in the DMV routinely travel between these states on a regular basis (D.C. isn’t technically a state, but for the purposes of this blog, we’ll just call it a state). Just because these states are neighbors, does not mean that they share the same laws when it comes to passing assets on to your loved ones if you die without a will. If you suddenly pass away and do not have a valid will, you have...

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Reverse Mortgages Becoming Popular Financial Planning Tool, But Can Impact Your Ability to Qualify for Medicaid

Reverse mortgages have quickly become a popular financial planning tool and there are many benefits associated with this type of mortgage. However, there are some potential drawbacks you should be aware of when it comes to qualifying for Medicaid benefits. This isn’t meant to dissuade you from considering a reverse mortgage, just advice to help you in how to best arrange the method in which you obtain the equity from a reverse mortgage. Here’s how a reverse mortgage works – you take out a reverse mortgage loan and have the option of receiving the home equity through: (1)...

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Why the 645 Election for Trusts has Become Important under ATRA 2012

Trusts are an attractive estate planning option because they provide an asset management vehicle during your lifetime and can provide more flexibility in terms of who receives your assets, and how they receive those assets. Another benefit is something called a "Section 645 election." Congress created an opportunity for trustees of a funded revocable trust to utilize certain tax advantages under section 645. When the executor (if there is one), or trustee, of your estate make a Section 645 election, the trust is treated, for income tax purposes, as part of the decedent's estate for all tax years of the estate...

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Reading Between the Lines: Why a Professional Estate Plan is Far Superior to a Cookie Cutter Online Will

Web sites like Legal Zoom, Total Legal, and others offer inexpensive, pre-formatted wills designed for people to simply plug in a few names, some items, and, presto chango, you have a will. Many people purchase these “cookie cutter” documents under the mistaken belief that this type of will is going to protect and properly disburse their assets to loved ones. Unfortunately, that often isn’t the case. Let me preface this by stating that I fully appreciate the value of the services offered by Legal zoom and other pre-made document web sites. For many people, the prospect of creating a will,...

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