Most people know they should have a will. But knowing and doing are two very different things It's important to consider that the gap between the two can cost your family far more than you realize. No matter if you are living in Bethesda, MD, Potomac, MD, Chevy Chase, MD or Annapolis, Maryland. 

After more than 25 years helping families and business owners across Estate Planning attorney Potomac MD DC TOPA, Virginia, and Washington, DC protect what they've built, we've seen the same painful scenario play out too many times, here it is:  

A spouse passes away, a business owner becomes incapacitated, a parent dies unexpectedly and the family is left scrambling because no plan was in place. Estate planning Lawyer Maryland will step in to fill that void. And when it does step in, It rarely does so in the way you would have chosen, which is why having an Estate Plan documented is the best thing to do. 

Here's what you need to know.

What Happens in Maryland Without an Estate Plan

When a Maryland resident dies without a valid will, the state's intestate succession laws take over completely. Under Maryland Estates and Trusts Code Sections 3-101 through 3-114, a fixed legal formula, not your wishes determine who receives your property and in what amounts.

The results can surprise even well-intentioned families:

  • Surviving spouse with children: Your spouse receives the first $40,000 of the estate plus half of the remainder. Your children split the rest, including children from prior relationships, regardless of age, need, or relationship with the surviving parent.
  • Unmarried partners: Receive nothing, no matter how long you were together.
  • Stepchildren (not legally adopted): Also receive nothing under Maryland intestacy law.
  • Minor children: A court appoints a guardian and it's not necessarily the person you would have chosen to be their guardian. 

Beyond the distribution problem, estates without proper planning must pass through Maryland's Orphans' Court probate process. Without a will, that process typically takes 12 to 24 months, compared to 6 to 12 months with a properly drafted plan in place. Add legal fees, court costs, and the emotional toll on your family, and the cost of not planning becomes very real.

An Estate Plan Is More Than a Will

This is where many Maryland residents stop short. A will is essential, but a complete estate plan addresses the full picture of your life, not just what happens after you're gone, but what happens if you become incapacitated along the way.

A comprehensive Maryland estate plan typically includes:

A Last Will and Testament:  Specifies who inherits your assets, names a personal representative to manage your estate, and designates a guardian for minor children.

A Revocable Living Trust: Allows assets to pass directly to beneficiaries without going through probate, saving time, reducing costs, and maintaining your family's privacy. Trusts are especially valuable for Maryland residents with real estate in multiple jurisdictions or complex family situations.

A Durable Power of Attorney:  Designates someone to manage your financial affairs if you become unable to do so. Without one, your family may need to petition a court for guardianship a time-consuming and expensive process.

An Advance Medical Directive (Living Will):  Communicates your healthcare wishes if you cannot speak for yourself and designates a healthcare agent to make decisions on your behalf. 

Beneficiary Designations: Life insurance, retirement accounts, and payable-on-death accounts pass outside of probate entirely, but only if the designations are current and coordinated with your overall plan. Outdated beneficiary designations are among the most common and costly estate planning mistakes we see.

 

Maryland-Specific Considerations You Cannot Ignore

Maryland is one of a small number of states that still imposes both a state estate tax and an inheritance tax. The Maryland estate tax currently applies to estates exceeding $5 million. The inheritance tax applies at a rate of 10% on property passing to anyone outside of a direct lineal relationship — meaning a close friend, a business partner, or an unmarried partner could lose a significant portion of what you intended for them.

Proper planning, including the strategic use of trusts, gifting strategies, and entity structuring — can substantially reduce or eliminate this exposure.

For business owners, the stakes are even higher. Without a succession plan integrated into your estate plan, the death or incapacity of an owner can trigger disputes among heirs, force a sale of the business, or leave a company without clear leadership during a critical transition.

 

The Right Time to Plan Is Before You Need It

Estate planning is not a document you create once and file away. Life changes — marriages, divorces, births, deaths, new businesses, new assets, new jurisdictions. A plan that was right five years ago may leave serious gaps today.

At The Law Office of Brian Gormley LLC, we work with Maryland families and business owners to build estate plans that reflect their actual lives: integrated, flexible, and built to hold up when it matters most.

If you do not have a current estate plan, or if you haven't reviewed yours in the last three to five years, we encourage you to take action now, before circumstances force the issue. Digital Assets, divorce, grandchildren, all play a part.