Trusts 101: Do You Really Need One In Maryland?

By Melissa N. Paddy, Esq., Liberty Legacy Law Group

If you’ve started researching estate planning in Maryland, you’ve probably come across a word that makes a lot of people pause: trust.

Do you need one? Is it just for the wealthy? Does it replace a will?

The world of trusts can seem complicated, but it doesn’t have to be. At Liberty Legacy Law Group, we believe in straight answers, clear planning, and no fluff. This guide breaks down the basics of trusts in Maryland, and helps you decide if one is right for your family.

What Is a Trust, Really?

At its core, a trust is a legal tool that holds property for someone else’s benefit.

There are three key roles:

• Grantor: The person who creates the trust (that’s you)
• Trustee: The person who manages the trust
• Beneficiary: The person(s) who benefit from the trust assets

When you create a trust, you’re setting rules for how your property should be handled – during your life, after your death, or both.

It’s like giving your estate a roadmap, instead of leaving it up to the court.

What Can a Trust Do?

A well-drafted trust can:

• Avoid probate (no court process)
• Control how and when your assets are distributed
• Protect beneficiaries from creditors, divorces, or bad decisions
• Provide for children, spouses, or dependents with special needs
• Plan for incapacity (if you become ill or disabled)
• Maintain privacy (no public court records)
• Reduce estate taxes (in some cases)

But not every family needs all these features. So let’s talk about the types.

Common Types of Trusts in Maryland

1. Revocable Living Trust

Revocable trust is the most common trust we create for Maryland families.

• You can change or revoke it anytime
• You stay in control as the trustee
• It becomes irrevocable upon death
• Assets inside the trust avoid probate

Perfect for:

• Families who want a flexible plan
• Homeowners who want to keep their property out of court
• Parents who want to stagger inheritance for children

2. Irrevocable Trust

Irrevocable trusts come in many forms and are designed for a variety of goals – including asset protection, long-term care planning, and preserving wealth for future generations.

• Often used for Medicaid planning, tax efficiency, and shielding assets from liabilities
• Certain types offer flexibility and can be amended or terminated under specific conditions
• May involve transferring ownership or control of assets, but in return, offer protection and peace of mind

Best for:

• Families wanting to preserve assets to pass on
• Those preparing for long-term care needs
• Individuals seeking strategic tax or asset protection tools

3. Testamentary Trust

This trust is written into your will and only takes effect after death.

• Requires probate
• Less flexible and private

Used when:

• You want minor children’s inheritance managed
• You don’t need lifetime trust benefits

So, Do You Need a Trust?

Here’s the honest answer: maybe.

You might benefit from a trust if:

• You own a home in Maryland
• You have minor children
• You want to avoid probate
• You want to protect your children’s inheritance
• You’re part of a blended family
• You have a child or spouse with special needs
• You want privacy

You might not need a trust (yet) if:

• You rent your home or own minimal assets
• You have no dependents
• You’re just getting started with basic planning

Even then, we often build trust-centered plans that can grow with you.

Common Trust Myths

“Trusts are only for rich people.”

False. In fact, many of our trust clients are middle-class families who simply want to avoid probate and protect their kids.

“I already have a will, so I’m covered.”

Not exactly. A will still requires probate. A trust avoids it.

“Trusts are too complicated.”

Not when we build them. We walk you through it step-by-step, using plain English, not legalese.

Why Trusts Are So Popular in Maryland

Maryland probate isn’t always terrible, but it can be:

• Time-consuming
• Public
• Costly (especially if there are challenges)

Trusts help families keep their affairs private, efficient, and under their own control.

We often recommend them for:

• Parents with young children
• Homeowners who want to name clear beneficiaries
• Clients who want to leave assets over time (not in a lump sum)

How We Help

At Liberty Legacy Law Group, we don’t just draft documents. We:

• Listen to your goals
• Explain your options clearly
• Design a plan that works for your life
• Handle the legal details so you can move forward with peace of mind

We also make sure your trust is funded (a fancy way of saying we help you title your assets properly so they actually go into the trust).

Final Thoughts

You don’t have to figure this out on your own. You don’t need to be wealthy. You just need to care about your family and your legacy – and want to make things easier for the people you love.

If that’s you, a trust might be the right tool. And we’re here to help you build it, one thoughtful step at a time.

Let’s build something that lasts. Contact Liberty Legacy Law Group today to find out if a trust fits your plan.