Estate Planning, Wills and Trusts

Financial 1 Tax, Inherited IRAThinking about dying is never easy, but planning for the inevitable is necessary, especially if you want it to be as stress-free as possible for the ones you leave behind. Mistakes can be avoided with proper planning and guidance from an estate planning attorney and a qualified financial professional.

One of the roles as your financial advisor is to help you formulate strategies in this critical area of estate planning that can protect your loved ones and simplify the estate settlement process during an already difficult time.

We Provide Both Legal and Accounting Services.

We take a comprehensive look at your overall picture and how the current estate planning rules can affect you and your plan. We guarantee that during your estate planning session we will be able to save you at least the cost of the session, and if not the fee will be refunded to you. We can adjust the cost of your services based on the complexity of your estate, and will work with you to make a plan you are more than comfortable with. Let us help you put all your affairs in order!



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Financial 1 Tax Services - Brian SpernBrian M. SpernElder Law and Estate Planning Attorney

Mr. Spern is admitted to the bars of Maryland, District of Columbia, State of New York and State of New Jersey. He is a member of the Elder Law and Estates and Trusts Sections of the Maryland State Bar Association, The Bar Associations of Baltimore City and Baltimore County and the District of Columbia Bar Association.

Mr. Spern has lectured extensively throughout the State on “Elder Law” and “Estate Planning.” Mr. Spern’s legal practice concentrates on “Estate Planning,” “Elder Law” legal issues facing senior citizens as well as General Civil Litigation.

If you have any questions about your specific situation, please give us a call at 410-908-9293 so we can assist you.


Why Do You Need an Estate Plan?

Financial 1 - Think About Tomorrow TodayThe primary purpose of estate planning is to preserve your wealth and try to ensure that what you spent a lifetime achieving is transferred to the proper, designated beneficiaries at the time and in the manner you chose with minimal costs, tax burdens, and the least amount of pain and suffering.

The estate planning objectives that most people have can be grouped into two major categories: financial and non-financial. Most of us have accumulated some kind of financial wealth, that is, things that can be measured monetarily. We have also accumulated non-financial things, or personal possessions. These are items that mean a lot to us like heirlooms and family traditions. Both of these should be accounted for in your estate plan.

Estate planning can be a bit daunting due to the numerous federal and state laws and potential estate and income taxes. It can also get confusing as many of today’s families are split and/or combined with additional members throughout the years. Having a professional who is well-versed in estate law can simplify the process.

Listen: Essential Estate Tax Tips (Podcast)

Financial 1, Tatyana Bunich“Legacy Therapy Podcast” Planning a Stress-Free Legacy
With: host Stacey Golden-Lisnock and special guest Tatyana Bunich

Tatyana Bunich joins the “Legacy Therapy” podcast to explore the unintended consequences that can come when someone receives a large inheritance after a family member passes away. Many people choose to have as little withheld as possible when they receive the money… and then are in for a nasty surprise when tax season comes around and they owe hundreds of thousands of dollars. Listen below, just press play!

Launch Podcast on Legacy Therapy | Read Summary and Get Tips



Important Estate Planning Documents

Documents to draft and keep updated:

Last Will and Testament

  Your Will: First and foremost, you should have a will – and keep it updated. Make sure that it includes language that protects you against potential change in estate tax exemption amounts. Instead of naming a specific sum that will fund a trust, many estate planning documents refer to a percentage. Phrases such as “that amount,” or “that fraction,” or “that portion” are many times standard practice.

  Living Will, Health Proxy and Durable Powers of Attorney for medical wishes. Your family members will not be left guessing your wishes if you have clear instructions that are expressed in these documents.

  Durable Financial Power of Attorney for financial activities should you become incapacitated.

  Letter of Instructions. This is an important document that addresses specific personal requests not in your will. It should be opened in the case of a severe illness or post-mortem. It can be used as a roadmap that shows the locations and the details of important documents and items from safe deposit boxes to checkbooks. Also, remember to safely store all of your key documents and note where they are in your Letter of Instructions so your heirs can find them.

  Review of all beneficiary designation forms on all of your trusts, retirement accounts and life insurance policies. Many people feel that if they have a will, retirement accounts and life insurance policies will be distributed according to these documents. Please be aware that the beneficiaries designated on your retirement accounts and life insurance policies will override everything – including your will, trust or any other estate plan. Make sure that the beneficiaries are consistent in all cases.

  Review titles on all non-retirement and non-life insurance assets. For example, joint tenants, also known as joint tenants with right of survivorship, will override everything, including your Will, trust, and any other estate plan.

Estate Planning Tax Considerations

  Estate Tax Exemption Amount: Be sure to check the state and federal exemptions for estate and gift tax for individuals. Remember your state exemption amount may be different than the federal exemption.

  Bypass Trust (AB trust): If you have more than $5.49 million of assets ($11 million for married couples), you may want to consider a Bypass Trust (AB Trust) to help reduce taxes by leaving some of your property to your children, but allowing your surviving spouse to use it during his/her lifetime. You can make the portability election on a spouse’s death to preserve the exemption as well. Remember to contact your estate planning attorney before deciding on a course of action.

  Reduce Your Estate: There are several ways to reduce the assets from your estate to help reduce taxes. Besides spending and enjoying it, among these strategies are tax-free gifts, creating an Irrevocable Life Insurance Trust (ILIT) and creating charitable trusts. A knowledgeable financial advisor and estate planning attorney can help create the best plan for you based upon your individual situation.

Who Can Help

  Your Attorney: If it has been more than three years since you’ve looked at your estate plan, consider meeting with an attorney to make sure everything is in order. It is not uncommon to go through life changes that can affect your estate plan such as divorce, death, new children, grandchildren or new assets that may warrant a modification in your plan. Also, make sure your Durable Power of Attorney and Living Will/Advanced Directives are current.

  Your Financial Advisor: Uncertainty and confusion still reign supreme when it comes to estate planning. With the proper guidance and planning you should be able to take advantage of any tax saving opportunities and avoid taxing pitfalls.

Remember, review and amend your plan periodically and as your objectives, acquisitions, inheritances and personal situations change.


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Top Eight Estate Planning Mistakes

Avoiding these eight common mistakes can help make life easier for those who survive you.

  1. Not having an estate plan! Any saver or investor at the least needs to have a current will.
  2. Believing that having a will avoids probate. A will is basically a document that informs the judge and your loved ones during probate of your wishes after death. It helps with guardianship if you have minor children and it provides a safety net for the intentions you have of your personal belongings and estate.
  3. Believing that establishing a revocable living trust will reduce estate taxes. After you pass away, your trust will have its own tax ID and the trustee must file an annual income tax return on its behalf. You may want to consider a Bypass Trust (AB Trust) to help reduce taxes by leaving some of your property to your children, but allowing your surviving spouse to use it during his/her lifetime.
  4. Not having your estate updated regularly. Many times, when an estate plan is originally drafted to the time of death, many things have changed, from new assets to new family members.
  5. Improper titling of assets. Having the wrong beneficiary named on retirement accounts, life insurance policies, and trusts regardless of what your will says, your accounts will override it.
  6. Not having a current durable power of attorney for health care/directive to physicians. Without these, your desires may not be understood and are left to interpretation of the parties involved, which may lead to disagreements and lack of continuity between them.
  7. Not having a community property agreement. This is of utmost importance to those who live in community property states.
  8. Not funding your living trust properly. No matter how thorough your living trust is, it needs to be sufficiently funded. Designating the trust as the legal owner of your property and assets can help avoid probate and possible estate taxes.

Key Steps to Help Your Estate Plan

Assess Your Current Financial Situation.
  • List all of your assets
  • Determine the exact ownership of each asset
  • Review all of your beneficiary forms on each asset
  • Determine who you would like to provide for
  • Provide adequate coverage for your spouse and dependents. Determine how you would like your property and assets divided
  • Protect your assets from creditors
  • Evaluate sale or succession plans for businesses you own
  • Reduce your taxable estate values
  • Organize all of your personal records
Identify planning alternatives for your specific estate.
  • Draft a will
  • Create a durable power of attorney
  • Sign a health proxy
  • Name guardians for under aged children
  • Select an executor and/or trustee
  • Consider the form & amount of property left to key dependents (especially your spouse)
  • Look into usage of the estate tax exemption amount
  • Review gifting possibilities
  • Create trusts
  • Identify a trusted family member or friend
Implement your estate plan.
  • Have an attorney draft or review documents
  • Create a flow chart to illustrate how you would like assets to transfer
  • Determine the best way to pay estate taxes (if appropriate)
  • Sign all necessary documents
  • Have a family meeting
  • Develop a personal list of requests
Monitor your estate plan.
  • Review your plan periodically
  • Review your plan as your objectives change
  • Review your plan as your personal life changes
  • Review how changes in estate tax or income tax affect your situation


Disclaimer: this is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. For specific advice about your situation, please consult with a lawyer or financial professional. Call 410-908-9293 for details or more information about our services.