The Maryland General Assembly had a number of bills come forth during its 2015 legislative term earlier this year. Although there were not sweeping changes to the field of Estates and Trusts as in years past, there were several notable laws that became effective on October 1, 2015. Some of the highlights are as follows:
- Maryland Trust Act – First, where a regular or modified probate proceeding is opened for a deceased grantor or settlor of a revocable trust, the period during which creditors can file enforceable claims will be the same for the revocable trust as for the estate. In these cases, the claim through the estate can be assessed against the revocable trust. In a small estate, publication of notice by the trustee of the revocable trust will commence the six-month period within which claims must be filed or an action against the trustee must begin. (SB417/HB666) Second, the Act now defines incapacity as “the inability of an individual to manage his or her property or financial affairs effectively because of physical or mental disability, disease, habitual drunkenness, addiction to drugs, imprisonment, compulsory hospitalization, confinement, detention by a foreign power, or disappearance.” (SB419/HB623)
- Modified Administration – The Register of Wills is now able to grant an additional 90-day extension for filing the Final Report if all interested persons consent. (SB418/HB623)
- Funeral Expenses – The limit on funeral expenses that do not need court approval, or lack authorization under the decedent’s Will, increased from $10,000 to $15,000. In addition, under modified administration, approval for payment of funeral expenses in excess of the limit can be listed on the Final Report and approved without separate court order. (HB624)
- Maryland Estate Tax – The procedure for filing the Maryland estate tax return has changed in that all returns will now be filed directly with the Comptroller without first being sent to the Register of Wills. (SB177/HB828) Also, the Comptroller cannot assess a penalty where Maryland estate tax is being timely paid pursuant to an alternate payment schedule accepted by the Comptroller. (SB178/HB826)
- Advance Medical Directives – Individuals are permitted to waive in advance the right to revoke a medical directive in the event that they later become incapable of making decisions. (HB293) Also, procedures may be established by the State that will allow witness signatures on medical directives to be made electronically. (HB1106)
- Disabled Individuals – The Estates and Trusts Code Sections 13-704 and 13-705 are revised to allow a Court to award attorney’s fees in a successful action for guardianship. (HB109) The Court may now appoint a guardian of the person for a limited period of time where the court determines that the disability is likely to end within one year. (SB90) The State has clarified that a court order is not required for the funding of a special needs trust. (SB217)
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