LGBTQIA+

Estate Planning FAQs for LGBTQ+ Individuals and Families

Estate planning is especially important for LGBTQ+ individuals and families. The following frequently asked questions address common concerns about wills, trusts, powers of attorney, advance medical directives, and other estate-planning documents under Maryland law. Thoughtful planning helps ensure that your wishes are honored and your loved ones are protected.

​Frequently Asked Questions

• What is an estate plan?
• Do I need an estate plan if my assets are modest?
• What happens if I die without a will?
• What is probate in Maryland?
• What exactly is a trust and why might I need one?
• I’ve heard about revocable living trusts. Should I have one?
• Can an estate plan help reduce taxes?
• I am married or in a committed relationship. Are there special planning considerations for LGBTQ+ couples?
• Do beneficiary designations override my will?
• What happens to my digital assets?
• When should I update my estate plan?
• I am young and healthy. Do I still need a financial power of attorney and advance medical directive?

What is an estate plan?

An estate plan is a coordinated set of legal documents that ensures you and the people you care about are protected if you become incapacitated or pass away.

In Maryland, a well-designed estate plan typically includes a will, a financial power of attorney, and an advance medical directive.

Depending on your goals, your plan may also include one or more trusts. Effective estate planning also takes into account how your assets are titled, beneficiary designations on retirement accounts and life insurance, and potential estate tax considerations.

A thoughtful estate plan gives you control, protects your loved ones, and helps avoid unnecessary legal complications.

Do I need an estate plan if my assets are modest?

Yes. Estate planning is not just about the size of your estate. It’s about control of your assets and protection of your loved ones.

Even if your assets are modest, a financial power of attorney and advance medical directive can help ensure that someone you trust can step in to manage your finances and make healthcare decisions if you are unable to do so.

A will also enables you to name a personal representative (executor), designate guardians for minor children, and direct where your assets go.

These protections are essential for individuals and families at every income level.

What happens if I die without a will?

If you die without a will, your estate will be distributed under Maryland intestacy law. These default rules determine who receives your assets based on your legal family relationships.

The court will also appoint someone to administer your estate and, if applicable, to serve as guardian of any minor children.

For LGBTQ+ individuals, particularly those who are unmarried, this can lead to unintended outcomes, including assets passing to biological relatives instead of a partner, close friend, or charity. A valid will helps to ensure that your wishes are followed and your chosen decision-makers are in place.

What is probate in Maryland?

Probate (also known as estate administration) is the legal process of transferring assets after death.

In Maryland, probate generally applies to assets held solely in an individual’s name. Assets that are jointly owned or that have designated beneficiaries—such as retirement accounts or life insurance—typically pass outside probate.

The process is handled by a personal representative (executor), who is responsible for identifying and valuing assets, paying debts and taxes, and distributing property to beneficiaries.

An experienced estate-planning attorney can assist with this process or handle much of it on the personal representative’s behalf.

What exactly is a trust and why might I need one?

A trust is a legal arrangement under which one person (the trustee) manages property for the benefit of another (the beneficiary).

Trusts are commonly used in estate planning to provide for minor children, manage assets over time, plan for incapacity, protect beneficiaries in bankruptcy or divorce, or address other estate-tax planning goals. A “special-needs trust” can be established for a beneficiary who receives government assistance. 

Trusts can be created during your lifetime or established under your will upon your death. Whether a trust-based estate plan is advisable depends on the nature of your assets, your family structure, and your long-term goals.

I’ve heard about revocable living trusts. Should I have one?

A revocable living trust can be a useful estate-planning tool in certain situations, but it is not necessary for everyone.

In Maryland, revocable trusts are often used for planning for incapacity, avoiding probate for certain assets, such as out-of-state property, and maintaining privacy.

Revocable trusts do not eliminate the need for a will, and they do not reduce estate taxes. Because Maryland probate is often relatively efficient, the benefits of a revocable trust should be weighed against the cost and administrative effort involved.

The right approach depends on your overall estate planning objectives. An experienced estate-planning attorney can help you decide whether a revocable trust should be part of your plan.

Can an estate plan help reduce taxes?

Yes, estate planning can help minimize potential estate tax exposure.

Both Maryland and federal law impose estate taxes on larger estates, although the Maryland estate tax affects substantially more families than the federal estate tax.

For married couples, estate planning strategies—often involving trusts—can help ensure that both spouses’ exemptions are fully utilized. This type of planning can significantly reduce or eliminate estate taxes at the death of the surviving spouse.

Even for individuals below the current thresholds, proactive planning can provide flexibility in the event of future changes in the tax laws.

I am married or in a committed relationship. Are there special planning considerations for LGBTQ+ couples?

Yes—estate planning remains particularly important for LGBTQ+ individuals and couples.

Married same-sex couples are entitled to the same legal and tax benefits as other married couples under both federal and Maryland law. These include favorable estate tax treatment and the ability to transfer assets between spouses without immediate tax consequences.

However, proper estate planning is still essential to ensure that assets pass according to your wishes, beneficiary designations are properly coordinated, and your spouse has clear authority in the event of incapacity.

For unmarried couples, estate planning is even more critical. Maryland law does not automatically provide legal protections for unmarried partners. Without proper documents in place, a partner may not have authority to inherit assets, make medical decisions, or access financial accounts.

A comprehensive estate plan—including a will, financial power of attorney, and advance medical directive—can ensure that your partner is protected and recognized. Planning can also help prevent disputes or challenges from others who may not agree with your wishes.

Do beneficiary designations override my will?

Yes.

Assets with beneficiary designations—such as retirement accounts, life insurance policies, and certain financial accounts—generally pass directly to the named beneficiary, regardless of what your will provides.

For this reason, it is important to review beneficiary designations regularly and ensure they are consistent with your broader estate plan.

What happens to my digital assets?

Digital assets are an increasingly important part of modern estate planning.

These may include email accounts, online financial accounts, cloud storage and photos, social media accounts, and cryptocurrency.

Maryland law allows you to authorize a trusted person, through your estate-planning documents, to access and manage these assets. Including appropriate provisions in your estate-planning documents helps ensure that your digital information is handled according to your wishes.

When should I update my estate plan?

You should review your estate plan periodically and after major life events, such as marriage or divorce, the birth or adoption of a child, significant changes in assets, or changes in Maryland or federal tax law.

Regular updates help to ensure that your plan continues to reflect your intentions and remains legally effective.

I am young and healthy. Do I still need a financial power of attorney and advance medical directive?

Yes. Unexpected illness or accidents can occur at any age. These documents ensure that someone you trust can step in to manage your financial and medical affairs if you are unable to do so.

Without them, your loved ones may need to go through a court process to obtain authority to act on your behalf.

Having these documents in place provides clarity, avoids delays, and helps reduce stress during difficult times.