Estate Planning: New Laws In Effect October 2023

Estate Planning

Oct 2

A new statutory form for Power of Attorney goes into effect October 1.

Do you have a Power of Attorney? Have you updated it recently? Often, Financial Institutions want recently executed Powers of Attorney documents, with specific language. Don’t assume the one you executed years ago will still be honored. Schedule a meeting to review your POA and update it, or to create a new one to ensure your designated agents will be able to act on your behalf if and when needed.

Also Effective October 1, 2023:

Intestacy Reform: Last session, the General Assembly passed sweeping reforms to intestacy law, i.e. the laws that determine how an estate is distributed in the absence of a will or Trust. Do you know how your assets will pass by state statute if you don’t have an estate plan? If you don’t know, it’s time to make a plan.
Registered Domestic Partnerships: An important component of the intestacy reform package is the establishment of registered domestic partnerships in Maryland. Starting October 1, any two unmarried adults may become registered domestic partners by filing a Declaration of Domestic Partnership with their local Register of Wills. This entitles the surviving registered partner to specific benefits in intestacy: to be treated the same as a surviving spouse in terms of the spousal share, priority to serve as Personal Representative and eligibility for a family allowance. It will also exempt the surviving partner from inheritance tax. A surviving registered domestic partner may not, however, elect against a will.
E-Signatures: An important provision within the e-filing legislation going into effect October 1 permitting e-signatures. This new law states that “A register may not refuse to accept any document based on the manner in which it was signed.” While it does not apply to wills and codicils, any other document may be signed with a wet signature, e-signature, DocuSign, or any other method. While e-signed documents will still need to be filed in paper form, this change will expedite some paperwork and facilitate more virtual execution of documents.
E-filing: The Registers of Wills are currently in the early stages of developing an e-filing system for probate in Maryland. The Maryland Rules still explicitly prohibit the Register of Wills from accepting documents filed electronically, so necessary Rule changes are underway to work closer to the goal of an e-filing system.