Ancillary Issues In Estate Planning
As part of the intake process, every client generally receives the same screening process. Prior to a first meeting, basic personal information is obtained so that the attorney can search land records and the unclaimed property database.
Searching the land records allows the attorney to determine how real property (land) is titled so that clients can understand what happens with real estate after an owner dies. See Blog Post addressing non-probate assets. It is not unusual for a deed to be solely in one name, while both spouses have signed the mortgage (known as a deed of trust in Maryland), or vice versa. When a deed is in one spouse’s name alone, it is sometimes advisable to consider adding the second spouse. A search of the land records will also reveal whether the client has ever filed for the Maryland Homestead Tax Credit, which serves to limit the amount property taxes can increase should property values begin to drastically increase.
While not common, it is not unusual for a client to have unclaimed property held by the Comptroller of Maryland. While the claims process is not overly complicated, it can be difficult to prove the address the Comptroller has on file if the client resided at that address years ago. In one case, the Cecil County Board of Elections was able to provide old address records from the 1970s and 1980s. If necessary, the attorney will assist the client with filing the claim as part of estate planning process.
After the first meeting the attorney is able to conduct a search of local court records for judgments or liens filed against an intended beneficiary under the estate plan. Judgments, liens, pending cases, and other situations personal to a beneficiary may frustrate the client’s intent. In such a case, a creditor might force the estate into litigation to force any distribution to be made to the creditor rather than the beneficiary. Where large judgments exist, it is worth considering a trust or other vehicle which benefits the beneficiary but is inaccessible to the creditor.
What amounts to about five to ten minutes of time of reviewing records can often save the client or the client’s estate substantial sums of money years from the time of drafting.