An estate plan is a map of sorts showing how you wish your assets to be distributed to your loved ones. You need an experienced lawyer to help you come up with an estate plan because, among other things, there are a number of laws that impact what you can and cannot do. For example a law that went into effect on October 1, 2020 sets guardrails intended to prevent people from disinheriting a surviving spouse who is not otherwise adequately provided for.
This complex new law means that part of careful estate planning should, in some cases, include family law arrangements, specifically, premarital and postnuptial agreements. It also raises the stakes for some people in marriages that are not working.
What is Maryland’s Augmented Estate Law?
Maryland law grants surviving spouses the right to claim a portion of their deceased spouse’s estate called an “elective share” even if their deceased spouse’s will leaves them little or nothing. Before October 1, 2020, this elective share applied only to probate assets which include assets titled solely in the name of the decedent and without any beneficiary designation attached to them but do not include, for example, bank accounts and retirement accounts (e.g. 401Ks, IRAs) with death beneficiary designations. This meant, with some exceptions, that non-probate assets could be used to bypass a spouse’s inheritance rights. The revised law expands the property that the surviving spouse can take from to include both probate and non-probate assets.
The augmented estate encompasses nearly all assets a person owned or controlled at the time of death, reducing opportunities for someone to completely disinherit their spouse.
Impact on Existing and Future Maryland Estate Plans
Estate plans drafted before October 1, 2020 may not reflect Maryland’s augmented estate law, creating unintended consequences. We understand many people and families in Maryland have put updating their estate plan on the back burner in the years that followed the pandemic, but a plan that once protected certain assets from a spousal claim may now be vulnerable.
The increased emphasis on non-probate asset planning has led to greater use of marital agreements, trust structures and strategic gifting before death. Without these adjustments, a surviving spouse’s elective share may disrupt intended distributions and create unnecessary conflict.
Estate planning requires even more coordination for those who remarry or have blended families. Prenuptial and postnuptial agreements now play a greater role in defining spousal inheritance rights. Additionally, trusts—such as Qualified Terminable Interest Property (QTIP) trusts—can help balance providing for a surviving spouse while preserving assets for other heirs. Reviewing and adjusting an estate plan ensures assets are distributed as intended, preventing loved ones from navigating legal storms after a passing.
Your Legal Compass to Navigate Evolving Estate Laws
Estate planning should not be left to chance or outdated strategies. Maryland’s augmented estate law affects asset distribution in ways many do not anticipate. I work with clients to ensure their plans reflect their true intentions while complying with Maryland law. Contact Navigate Law Firm to set your estate on the right course and protect the legacy you have built.
