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Kelly McCrea is an estate planning attorney with KMC Law in Maryland. In this video, she explains what the components of an estate plan are and why it's important to get it done. This is a basic introduction, we don't spend too much time on any given topic - I will be circling back to do a deeper dive in later episodes.

Intestacy means property passes through probate without a Will - it's up to the courts to decide who gets what. I learned that in Maryland if you don't have a Will your assets will be split 50% between your spouse and minor children - not sure if/how many other states have similar rules, you'll want to check.

There are some things that don't have to go through probate - anything with a beneficiary form because the beneficiary form will take priority. This makes it very important to keep these updated, especially after a divorce or other significant changes.

Another thing I learned is Maryland is a "surrogate" state - meaning your spouse or parents may speak for you if you are unable to speak for yourself, even if you don't have advanced directives. This link will take you to an HHS pdf file that does a deep dive into state surrogate laws.

The advanced directives help your loved ones make decisions about what treatments you do, or don't, want; and everyone over the age of 18 who is of sound mind and body should complete them - especially if you have kids doing a semester abroad or going off to college in another State.

We talked about (2) kinds of Powers of Attorney - the Springing and the Durable. Springing means it won't come into effect until the individual has been found incapacitated by (2) medical professionals. The Durable power of attorney means it will stay in effect even after the individual becomes incapacitated mentally. 

Kelly explained Revocable living trusts and testamentary trusts. Revocable means it may be changed and does not offer any protection for public benefits. Testamentary means it will come into being after you die. You also have the option of creating special needs trusts while you're alive, as long as you fund them with a nominal amount (I've got $10 in each). We discussed trustees, highlighting the challenges of having more than one - someone has to have the final say. Trustees control the flow of assets and trust protectors monitor the distribution - an important distinction. 

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