When it comes to estate planning in Maryland, it’s crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in Maryland, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Maryland is joint property. When property is held jointly with rights of survivorship, it means that the surviving joint owner automatically inherits the deceased owner’s share of the property. This transfer of ownership occurs outside of the probate process, as the property passes directly to the surviving joint owner.
Life Insurance Policies
Life insurance policies are another form of property that bypasses a will in Maryland. The proceeds from a life insurance policy are paid directly to the named beneficiaries upon the policyholder’s death. These funds are not considered part of the deceased individual’s estate and are therefore not subject to probate.
Trusts
Assets held in a trust are also exempt from passing under a will in Maryland. A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries. When the creator of the trust passes away, the assets held in the trust are distributed according to the terms outlined in the trust document, bypassing the probate process.
Legal Code Reference
In Maryland, the laws governing the distribution of property that does not pass under a will can be found in the Estates and Trusts Code, specifically Title 4 of the Maryland Code. It is essential to consult the relevant legal statutes and seek guidance from a qualified estate planning attorney to ensure that your assets are distributed according to your wishes.
Ensuring Proper Distribution of Assets
Understanding which types of property do not pass under a will in Maryland is crucial for effective estate planning. By being aware of how joint property, life insurance policies, and trusts operate outside of the probate process, individuals can ensure that their assets are distributed in accordance with their intentions.
Buried in Work’s Additional Resources
Buried in Work provides Maryland state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
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