Frank, Frank & Scherr, LLC Elder Law, Estate Planning & Special Needs Planning 2026-10-15T12:06:09Z https://www.frankelderlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1601048/2020/07/cropped-Favicon-32x32.png On Behalf of Frank, Frank & Scherr, LLC <![CDATA[Understanding supplemental needs trusts in Maryland]]> https://www.frankelderlaw.com/?p=47621 2026-10-15T12:06:09Z 2026-10-15T12:06:09Z Support from the beneficiary’s own assets A first-party SNT or a self-settled trust is a legal tool that helps a disabled person keep public benefits while using their own money. The beneficiary must fund the trust with assets they already own, including:
  • Money from a personal injury case
  • Past-due social security payments
  • Unexpected inheritance
In most cases, the beneficiary must create the SNT and fund it before they turn 65. A key feature of these trusts is the payback rule. In Maryland, when the beneficiary dies, any remaining money must generally first repay the Maryland Department of Health for Medicaid medical assistance provided during their lifetime.

Aid from family members

Many Maryland residents opt for a third-party SNT, which is a trust established and funded by beneficiary’s family members, like their siblings or adult children. Funding can come from gifts, life insurance policies or as part of a last will and testament. Unlike a first-party SNT, there is no requirement to reimburse the state with a third-party SNT. This advantage allows remaining funds to pass to other family members or charities after the beneficiary passes away. Moreover, the family can create this SNT at any time without rushing before the beneficiary reaches 65 years old.

Key differences at a glance

The primary distinction between these two trusts lies in whose money goes into it. A beneficiary funds a first-party SNT themselves while family members fund a third-party SNT. Both SNTs still must follow the sole benefit rule, where the funds can only pay for extras that improve the beneficiary's quality of life. This includes what government programs do not cover, including:
  • Specialized therapy
  • Travel
  • New electronics
It is also important to note that in Maryland, first-party SNTs often face more rigorous reporting requirements and oversight from state agencies than third-party SNTs.

Helping secure future care and benefits

When planning an SNT, precise wording is vital. A single mistake in trust language can lead to a loss of benefits. A Maryland estate planning attorney can help families determine which SNT best fits their specific long-term goals.]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[Who should you choose as a healthcare agent?]]> https://www.frankelderlaw.com/?p=47619 2026-10-09T21:14:40Z 2026-10-09T21:14:40Z When you use a medical power of attorney, you need to pick a healthcare agent. The power of attorney authorizes them to make medical decisions on your behalf, should you become incapacitated. You certainly need to choose someone who is of sound mind, and they also need to be a legal adult. But beyond that, you have a lot of flexibility to choose a family member, a friend or even a professional. What should you look for when selecting your agent?

Someone you trust with your life

First and foremost, this person needs to be absolutely trustworthy. They are going to make critical decisions for you, and these could even include life-or-death decisions. You must inherently trust them to put your best interests first.

Someone who can handle the responsibility

Being granted this power is a large responsibility. They may need to talk to medical professionals. They may have to pass information to family members. The decisions they make could lead to conflicts or disagreements. They have to be able to handle all of this from both an emotional and an intellectual standpoint.

Someone who is available

Finally, making these decisions can take a lot of time and energy. Is the person actually going to be available to put in the time that is necessary? This is why it is often wise to pick someone who lives near you so that they do not have to travel to be with you in an emergency. Once you have determined who you would like to choose for your medical power of attorney, then it is important to know the legal steps to take to get all of the proper paperwork in place.  ]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[What is the average cost of long-term care in Maryland?]]> https://www.frankelderlaw.com/?p=47617 2026-09-25T19:06:31Z 2026-09-25T19:06:31Z When doing estate planning, long-term care planning and Medicaid planning, it is important to consider the costs that you may face. These are going to be unique in every situation, depending on the type of care that is required. But understanding the averages can help to demonstrate why planning in advance is important. It is also worth noting that these costs vary significantly from state to state. Below, we will take a look at some of the averages in Maryland specifically.

Assisted living

To begin with, some individuals move into an assisted living center. They may be fairly independent, but they do require consistent assistance, and living in this type of facility is going to average roughly $7,173 on a monthly basis.

Memory care

As people age, they may run into issues like dementia or Alzheimer’s, which means they need to live in a memory care center. This is a much more intensive type of assistance and averages around $9,000 per month.

Nursing home care

A nursing home is a step above an assisted living center in terms of the care that a person receives. It is also possible to get a semi-private room. However, this is the most expensive option, with reports indicating that it averages about $12,927 per month.

In-home care

Finally, many people prefer to age at home, but they will hire in-home caregivers to assist them. This is a bit less expensive because it is not around-the-clock care, but paying for 44 hours per week will cost roughly $6,673 a month. These high costs help to demonstrate why advance planning is important. It can help to work with an experienced attorney while exploring all of your options.  ]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[Can you have a CalABLE and a Special Needs Trust?]]> https://www.frankelderlaw.com/?p=47616 2026-09-14T11:43:28Z 2026-09-14T11:43:28Z A person with a disability may have both a CalABLE account and a special needs trust. When used correctly, these tools can provide financial support without automatically disqualifying the beneficiary from Supplemental Security Income or Medi-Cal. Consulting with a legal team knowledgeable in special needs planning can help determine how each account should be established and used. The two options serve different roles. A special needs trust places assets under a trustee’s control and may receive an inheritance, settlement or life insurance proceeds. On the other hand, a CalABLE account belongs to the beneficiary. It provides easier access to money for qualified disability expenses.

How can the two accounts work together?

A trustee may transfer money from a special needs trust into a CalABLE account when the trust terms permit it. The beneficiary could use those funds for qualified costs like:
  • Housing
  • Transportation
  • Education
  • Health care
  • Assistive technology
CalABLE funds may also be useful for expenses requiring frequent payments or debit-card access. Careful coordination regarding these accounts is essential. Contributions from relatives, the beneficiary and a trust all count toward the annual CalABLE contribution limit. In 2026, the general limit is $20,000, although certain employed beneficiaries may contribute more. As for SSI recipients, they must monitor their balances. The first $100,000 in an ABLE account is excluded from SSI resource calculations. Amounts above that threshold can suspend SSI if total countable resources exceed the applicable limit. Using both may create useful flexibility. For example, a trustee could transfer money from a special needs trust into the beneficiary’s CalABLE account. The beneficiary could then use a debit card to handle approved personal expenses. This arrangement may support independence while allowing the trustee to retain oversight of the pool of assets.  The right arrangement depends on who owns the funds and which benefits the individual receives. Coordinated planning can combine long-term asset management with practical spending flexibility while reducing avoidable tax or eligibility problems. ]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[2 areas to consider when estate planning for digital assets]]> https://www.frankelderlaw.com/?p=47613 2026-08-29T16:24:29Z 2026-08-29T16:24:29Z Estate planning for digital assets can become complicated. As these assets become more common for Americans, it is important to know how they work and if there are any special considerations. For example, cryptocurrency can be a very valuable digital asset. This is an online currency, but people will often invest in it using USD, and it can gain significant value. You can often include a cryptocurrency account in your estate plan. This can leave a significant amount of wealth to your beneficiaries. However, be sure that you also leave them the correct login information so that they can access the digital wallet and obtain the funds. If you do not do so, even if the wallet is technically left in their possession, they may not be able to spend the cryptocurrency or remove the same value in USD. This is much different than simply leaving someone access to a bank account, which you could do through a payable-on-death account or by giving access to the estate executor.

Some assets cannot be included

Another thing to consider is that certain digital products cannot be included in your estate plan to begin with. For instance, many people who purchase digital products like movies are actually just purchasing a license. They do not own the movie itself, at least not in the same way that you would own a DVD or a VHS cassette. When a person passes away, the license to that content expires. A collection of digital movies, video games or music may have cost a significant amount of money upfront, but those assets cannot necessarily be left to the next generation. Exactly what steps you will need to take as you make your estate plan depend on the digital assets that you own and your goals for them in that plan, but just be sure you understand the complexities of the situation and the legal options you have.  ]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[Can you delay when someone gets an inheritance?]]> https://www.frankelderlaw.com/?p=47610 2026-08-14T13:10:22Z 2026-08-14T13:10:22Z Yes, it is possible to delay when someone receives an inheritance. But you likely need to take steps to do this well in advance. After all, most people can directly inherit assets as soon as they turn 18 and become legal adults. If you leave $100,000 to a grandchild who turns 18 before you pass away, they are going to get the full amount as soon as your will goes through probate. Your estate plan simply specifies who should receive the funds, and the estate executor will ensure that they do. However, you may think that they do not need to have that much money at 18 and that it would be best for them to get access to the funds at a later date. To do this, you generally need to set up a trust.

Specifying certain ages for distribution

A trust does not necessarily have to be complicated. The benefit is just that the trust owns the assets, so you can set up certain rules for how long they should be held before the beneficiary is allowed to access them. You may even want to pick specific ages. For instance, you could put the money into a trust and state that the beneficiary gets the first $25,000 when they turn 21. At 25, they get another $25,000. Only when they turn 30 do they get access to the final $50,000. By doing this, you help to spread the money out so that they can use it later in their life. This may also give you confidence that they will make better decisions with the money at 30 years old than they would have at 18 years old.

Creating a trust

This is just one of the ways that a trust can give you some control over your estate plan. Make sure you know what legal steps to take to set up a trust that focuses on your family’s needs.  ]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[Estate tax vs inheritance tax: What’s the difference?]]> https://www.frankelderlaw.com/?p=47608 2026-08-06T14:33:22Z 2026-08-12T14:15:50Z How does the estate tax work? The estate tax generally applies only if the estate exceeds Maryland's estate tax exemption amount. Maryland establishes this threshold for estates valued at $5 million or more. If your total assets fall below this specified amount, your estate will not owe this particular tax. Your estate pays the Maryland estate tax before your heirs receive their assets, but the first $5 million is exempt. The state uses progressive tax rates up to a maximum of 16%. Maryland calculates the estate tax using a credit-based system tied to historical state death tax credits.

Who pays the inheritance tax?

While the estate tax looks at the estate’s total value, the inheritance tax is based on who receives your assets. Maryland applies the inheritance tax to certain people who receive property from you. The following is a list of people who are exempt from the tax:
  • A surviving spouse or domestic partner
  • Your children and stepchildren
  • Your grandchildren
  • Any surviving parents
  • Your siblings
Under Maryland law, they are commonly called “exempt beneficiaries.” Maryland charges a flat 10% inheritance tax on assets passing to non-exempt beneficiaries.

Does “double taxation” happen?

Your estate can meet the criteria for both taxes. For example, your estate may be large enough to owe the estate tax, and some beneficiaries are not exempt from the inheritance tax. Fortunately, Maryland law (specifically Md. Code Ann., Tax-Gen. § 7-304) prevents true double taxation. Any inheritance tax paid typically acts as a credit against the Maryland estate tax owed, reducing the overall estate tax burden. Keep this in mind, as both taxes can significantly reduce the inheritance you intended for your loved ones.

Practical strategies

Planning can help minimize the impact of these taxes on your heirs. Consider financial and legal tools such as revocable living trusts, lifetime gifting strategies or spousal portability. You may want to consult a legal adviser to learn strategies for reducing your tax liability.]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[Aging on your own? Planning is especially important]]> https://www.frankelderlaw.com/?p=47607 2026-08-04T23:11:27Z 2026-08-04T23:11:27Z Key decision-making documents It is essential to have clear guidance in place long before a crisis occurs. Here are three critical documents to consider:
  • A financial power of attorney (POA) authorizes someone to manage your accounts if incapacity occurs.
  • A medical POA gives someone the ability to make treatment decisions when needed.
  • An advance directive records personal preferences for medical care and end-of-life choices.
Together, these tools help safeguard your assets and health care preferences. Updates as needed can help ensure they always reflect your current circumstances.

Planning for long-term care needs

Many solo agers prefer to remain at home as long as possible, making long-term care planning essential. Maryland offers a number of home and community-based services (HCBS) programs that support daily living and help prevent nursing home placement. Since each program has specific eligibility rules, a thorough review of your situation can help you determine which options fit your needs and goals.

Building a reliable support network

A dependable support network can make a positive difference for those aging without immediate family. Many people choose trusted friends, relatives or community members to assist with important tasks. An experienced legal representative can fill a crucial role in your support team by helping ensure that your affairs remain in order throughout the aging process.]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[What is an executor of the estate?]]> https://www.frankelderlaw.com/?p=47606 2026-07-22T07:03:41Z 2026-07-22T07:03:41Z You may be asked who you want as your executor when drafting an estate plan. Simply put, an executor is responsible for managing your assets after you pass away.  The role of executor is not a simple job that should be taken lightly. It can help to understand what an executor does before choosing one for your estate plan. Here is what you should know:

What are the responsibilities of the executor?

As mentioned above, an executor’s role is to manage your assets according to your last wishes. However, this does not mean your loved ones will inherit your assets immediately after you pass away. The executor must collect death certificates and file your will to probate court to initiate the probate process. During the probate process, the executor is responsible for resolving any unpaid debts and taxes. Then they can reach out to beneficiaries who may be entitled to a part of your estate. The probate process can take months once it begins and resolves when the last of your estate is distributed. 

Who should be the executor of your estate?

An executor can be a spouse, child, loved one or friend. This does not mean your executor should be the first person that comes to mind. An executor often needs to have the skills and understanding to manage a large estate. Executing an estate also involves a large time commitment. You can consider someone you trust and who knows how you want your estate to be managed. Before picking an executor of the estate, you may need to reach out to professional legal guidance to learn more.]]> On Behalf of Frank, Frank & Scherr, LLC <![CDATA[How is a living will different from a power of attorney?]]> https://www.frankelderlaw.com/?p=47603 2026-07-15T14:29:40Z 2026-07-15T14:29:40Z Both living wills and powers of attorney can be used when creating an estate plan. Often, these are both set up to address future medical decisions. Though similar in focus, these documents both approach the issue much differently. With a living will, the goal is typically to make decisions in advance. For instance, if you suffer a stroke and are being kept on life support, do you want that medical assistance to continue, or would you prefer not to be kept on life support at all? If you have a preference one way or the other, you can list that instruction in your living will. This is a legally binding document as part of your estate plan, so it provides guidance not only to the medical team that is treating you, but also to your family members. It lets them know what type of care you would have preferred.

A power of attorney

With a power of attorney, the focus is on choosing an agent. If you are incapacitated, such as if you have a stroke and cannot communicate your wishes to your doctors, then the agent gains the ability to make medical decisions on your behalf. This does not necessarily mean that you have given that agent specific instructions. Instead, you simply trust them to consider the realities of the situation, talk to your medical team, speak with your family and make appropriate decisions that are in your best interests. Both of these documents can certainly be helpful, and it is important to consider your medical future when creating an estate plan. Take the time to carefully consider all of the legal options at your disposal.]]>