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Annapolis estate planning attorney specializing in Maryland estate planning for Anne Arundel County. We provide assistance with wills and trusts, living trusts, powers of attorney, and estate administration. Stay informed about the new 2026 tax law changes that may affect your plan.

You've worked hard to build something worth protecting. Whether it's a home on the Chesapeake, a business in Annapolis, a retirement account, or simply the family you want to provide for — an estate plan is essential in ensuring that what you've built goes where you want it to go. This is a key aspect of Maryland estate planning, which helps to avoid complications later on. 

Without an estate plan, Maryland's intestacy laws will determine the distribution of your assets. Courts may become involved, families can argue, and probate can take months. The people you care about are left managing paperwork during the hardest moments of their lives, which is where estate administration comes into play. 

At the Law Offices of Diana L. Klein, we assist individuals and families in Annapolis and throughout Anne Arundel County in creating estate plans that are clear, legally sound, and genuinely reflect their wishes. Whether you need a simple will or a comprehensive trust strategy, we explain your options in plain language and build a plan tailored to your life — not a generic template. We also handle estate administration, guiding you through the process if you are faced with the loss of a family member and don’t know where to begin. 

We offer a no-cost consultation and proudly serve Annapolis, Severna Park, Glen Burnie, Pasadena, Arnold, and all of Anne Arundel County.

1. Federal estate tax exemption raised to $15 million

The One Big Beautiful Bill Act permanently raised the federal estate and gift tax exemption to $15 million per individual ($30 million for married couples), effective January 1, 2026. The old exemption — which was scheduled to drop to roughly $7 million — is gone. For most Maryland families, this change eliminates federal estate tax entirely, simplifying estate administration.

But here's the catch: Maryland's estate tax exemption remains at $5 million. This creates a $10 million gap where Maryland residents owe zero federal estate tax but can face substantial state tax — up to $800,000 on a $10 million estate and up to $1.6 million on a $15 million estate, impacting many aspects of Maryland estate planning.

If you haven't updated your estate plan since 2024, the math has changed. Formulas built into older wills and trusts designed to minimize federal tax may now work against you — potentially disinheriting a spouse or misfunding a trust.

2. Maryland SB 939 raises the homestead bankruptcy exemption to $125,000

Maryland's new homestead exemption law (effective June 1, 2026) now protects up to $125,000 in home equity — and it applies to homes held in revocable trusts. This is excellent news for families who have already done estate planning: homes transferred into a living trust now carry the same bankruptcy protection as homes held outright. If you've been advised that putting your home in a trust was risky from a creditor standpoint, that calculation has changed.

We can ensure that your assets are distributed according to your wishes, not merely following Maryland law.

We can prepare:

1. Last Will and Testaments - A will directs who inherits your property, names a personal representative to manage your estate, and — critically — allows you to name a guardian for your minor children. Without a will in Maryland, the court decides who raises your kids. That alone is reason enough to have one.

2. Revocable Living Trust - A living trust holds your assets during your lifetime and transfers them to your beneficiaries after you die — without the need for probate. There are no court proceedings, no public record, and no months-long delay. In Maryland, where probate can take a year or more for complex estates, a properly funded living trust is one of the most valuable gifts you can leave your family.

3. Power of Attorney - A durable financial power of attorney authorizes someone you trust to manage your finances if you become incapacitated. Without one, your family may need to go to court to gain that authority — a costly and stressful process known as guardianship.

For military families in the Annapolis area, a power of attorney is essential before deployment. It allows your spouse or designated agent to manage mortgage payments, finances, and legal matters while you are overseas.

4. Healthcare Directive / Advance Directive - An advance directive (sometimes called a living will) informs your doctors and family about your medical treatment preferences if you cannot voice them yourself. A healthcare proxy names the person authorized to make those decisions. These documents help prevent family conflict during difficult times and ensure your wishes are legally binding.

5. Probate & Estate Administration - When a loved one passes away in Maryland, someone must manage the estate — filing with the Register of Wills, notifying creditors, managing assets, and distributing property. Whether the estate is simple or contested, we assist personal representatives with efficient and correct estate administration.

6. Asset Protection & Trust Strategies - For Maryland residents with estates between $5 million and $15 million, the $10 million gap between Maryland's $5 million estate tax threshold and the federal $15 million exemption creates real tax exposure. Strategic trust planning — including credit shelter trusts, QTIP trusts, and lifetime gifting — can significantly reduce or eliminate Maryland estate tax.

Estate planning is not just for the wealthy; it’s essential for everyone. Many people mistakenly believe that Maryland estate planning is only for the affluent or the elderly, but that’s not the case. Here are the groups we encounter most frequently in estate administration: 1. Young families 2. Blended families 3. Military families and veterans 4. Small business owners 5. Individuals who have not updated their wills and trusts in the last 3 years.

Start with a 30-minute no cost consult about estate administration. It does not have to be complicated or expensive when it comes to Maryland estate planning. Call us at 443-569-4574 or contact us online to discuss your wills and trusts.