Estate planning in Maryland – what should I do with my primary residence?

Estate planning is a crucial component of responsible financial management, ensuring that your assets are distributed according to your wishes upon your passing. In Maryland, creating a basic trust-based estate plan can offer numerous benefits, one of which is the opportunity to retitle your primary residence into a revocable living trust. In this article, we will discuss what you need to know about establishing a trust-based estate plan in Maryland and why it may be advantageous to retitle your home into that trust.

Estate planning in Maryland involves a range of legal tools and strategies to manage and distribute your assets efficiently. These tools can help you minimize taxes, avoid probate, and provide for the seamless transfer of assets to your heirs. One of the most fundamental aspects of estate planning is the creation of a revocable living trust.

A revocable living trust is a legal entity that holds and manages your assets during your lifetime and allows for their efficient transfer upon your death. As the grantor (the person creating the trust), you have full control over the trust and can amend or revoke it at any time. Note that as part of a trust-based estate plan, you should also receive a will (yes, when you have a trust, you still need a will), powers of attorney (which are vitally important should you become incapacitated) and an advanced directive, sometimes referred to as a living will. 

For the purposes of this article, we will focus on the potential benefits of retitling your Maryland primary residence into your revocable living trust.  ‘Retitling’ assets into your revocable living trust comes at the end of the process because, well, you must have a validly executed revocable living trust before you can retitle anything into it! 

If you are single, the process will likely only require one deed.  If you are a married couple, you will want to first have your attorney review your deed and determine how you currently hold title to your property.  If you lived together before you were married, or if you owned a home in one name prior to marriage, depending on your situation, you may need to have two new deeds created – one to get the property into ‘Tenants by the Entirety’ (or TBE as it’s often abbreviated) and another to then take that TBE property and title that TBE property into the name of your revocable living trust.  Maryland has a wonderful law that, if followed carefully, allows otherwise elusive ‘asset protection’ to apply to the creditors of your spouse as it relates to your primary residence once it is properly retitled to your revocable living trust.  In fact, even if you sell your home and downsize, you can continue to protect the proceeds of that sale (by putting them into an account in the name of that same revocable living trust). That is a powerful tool to have as part of your estate plan.  Two important notes here:

1) We are talking about your primary residence in Maryland. If you own other properties in other states, or even in Maryland, you must talk to an experienced estate planning attorney before you attempt to change title to those properties and

2) There are several specific steps that must be taken for your home to be protected against any future claims against your spouse and one of the most important is to be certain that there are no creditor claims against your spouse already.   

Another benefit to retitling your primary residence into your revocable living trust is probate avoidance.  Because our homes here in Maryland are often very valuable, and because probate fees (and any associated attorney fees) are assessed based on the value of the probate estate, the analysis to determine whether to invest in a quality estate plan can be relatively straightforward and doing so can help your loved ones avoid probate, maintain privacy, and secure your legacy.

Amy Lazas, Esq., M.A.S.
Providence Law Group, LLC

I would like to acknowledge the assistance of ChatGPT in generating and refining content for this article.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is essential to consult with a qualified legal professional for advice specific to your situation. No attorney-client relationship is created by reading this content. The information presented here may not be current or accurate. Laws vary by jurisdiction, and the information provided may not apply to your circumstances.

Planning for the Next Phase

When you or your loved one begins the search for the right assisted living community, it’s hard to know where to start. Every community has different levels of service they provide to their residents. As you begin your research, it’s a good idea to sit down and learn about the various levels of services available to you.

Lorien Harmony Hall, for example, provides a continuum of care allowing residents to remain within Lorien, even if their needs change over time.

Here are the five levels available at Lorien:

Level 1: For those who require minimal assistance with activities of daily living.

Level 2: Includes level one services with 24-hour caregiver service supervised by licensed nurses.

Level 3: Includes level two services with a higher level of medical and personal care, as well as one-person transfer assistance and escorts (if needed).

Level 4: Includes level three services with moderate transfer assistance and specialized diet modifications.

Level 5: Includes level four services in addition to Hoyer lift and two-person transfers, total feeding assistance, hospice care, and more.

This continuum of care sets Lorien Harmony Hall apart, providing residents with peace of mind, knowing that they won't have to leave their familiar surroundings and support system if their health condition changes.

It’s also important to consider the amenities that might be needed. Examples of some of Lorien’s amenities include:

• 24-hour Site Nursing Care: Lorien doesn't just have nursing care available during the day; we provide it around the clock. This means that residents and their families can have peace of mind, knowing that there is always a qualified nurse on hand to address any medical concerns.

• On-site Dialysis: Having on-site dialysis can be a game-changer. That’s where a community like Lorien Harmony Hall comes in, offering this vital service, and ensuring that residents receive the care they need in a beautiful community without the inconvenience of off-site appointments.

• Two-Person Transfer Assistance & Hoyer Lift: Lorien recognizes that mobility challenges can vary greatly among residents. Our inclusion of Two-Person Transfer Assistance, and the use of Hoyer lifts, ensures that individuals with limited mobility receive the specialized care they deserve.

• Chronic In-House Wound Care Management: Healing wounds properly is crucial for overall well-being. Lorien takes wound care seriously, offering in-house management to expedite the healing process and minimize discomfort for residents.

• Sliding-Scale Diabetic Management: Diabetes management is a delicate balancing act. Lorien's commitment to sliding-scale diabetic management helps residents maintain their health by carefully monitoring and adjusting insulin levels as needed.

• Bolus Tube Feeding: Nutritional needs can vary greatly among residents, and Lorien understands this. Bolus tube feeding is another service we provide, ensuring that residents with specific dietary requirements receive the nourishment they need to thrive.

Learn more about Lorien Harmony Hall and all of its amenities and services by clicking here.

August Real Estate Stats

 Here are your Central Maryland real estate stats for July 2023. Click the links below to get information for each county.

Anne Arundel County

Baltimore City

Baltimore County

Carroll County

Harford County

Howard County

It’s not huge, but we are seeing a very slight uptick in the number of listings on the market for some counties. On a national level, existing home sales were down 17.1% for the 2nd quarter of 2023 in comparison to 2024. Existing home sales were forecasted to be down only 9.1% for the 3rd quarter of the year and have an increase of 9.6% for the 4th quarter of this year. Only time will tell, but we are seeing an increase in listings on our Team as well. 🤞

Most counties in Central Maryland still show that homes, on average, are selling for more than their original list price. Days on market are still relatively low and the median sold prices for all counties is higher than it was in August of 2022.

Don’t see your county listed? Reach out to us! We’d be happy to send your county stats over to you. 

Homeowner Tips

Whether you just purchased a home, or you’ve owned one for years, we have some homeowner tips just for you! Read on to find out some of our Team’s favorite tips for homeowners.

Gardening with a purpose!

We all know about curb appeal, but gardening doesn’t have to be limited to just having a pleasing aesthetic. Plan your garden to help you with energy savings! 

Plant deciduous shrubs and trees to shade the southern and western walls of your home and your air compressor. In the spring and summer, the plant’s leaves will help shade your home. After the trees/shrubs lose their leaves in the cooler months, the sun will help to passively heat your home. #genious

The northwestern walls of your home receive the least amount of sun so consider planting evergreen trees there to protect your home from winter winds. Want to reduce your water usage? Consider planting native plants which tend to require less water and maintenance once established.

Choose the right project to tackle.

Thinking about adding a bathroom in your basement? Maybe you’ve thought about replacing your vinyl siding? If you’re considering a “non-urgent” project, you might want to check out the Cost Vs. Value report that Remodeling Magazine releases every year. Here’s the report for 2022.

The report compares the average cost for remodeling projects with the value of the said project at resale. Keep in mind that the report compares cost vs. value at a regional level. If you are comfortable providing them with your contact information they’ll give you the data at a city level. 

Want to take it a step further? Reach out to us! Real estate agents can look at your specific market to determine what upgrades are common for homes that are comparable to yours. This may help you decide if the project you’re considering is worth your money and time!

Applying for the Homestead Tax Credit

If you haven’t done so already, you should apply for the Maryland Homestead Tax Credit. The Homestead Tax Credit limits the increase in taxable assessments each year to a fixed percentage.

Fill out an application to slow the rate of your tax increase. Though you can apply at any time, most homeowners apply within the first 6 months of owning a home. If you had applied in the past, 2007 legislation changed, and homeowners had to re-apply in order to continue eligibility. Legislation passed in 2021 that makes the credit retroactive for 1 year.

You can download a PDF application from the website, or you can apply online at:
https://sdathtc.dat.maryland.gov/

Consider getting a Home Equity Line of Credit

This is a great tool to help you prepare for the unexpected. If you ever have an emergency home repair or you decide to tackle a large construction project, the home equity line funds can help you cover the expense. 

A Home Equity Line of Credit (HELOC) is just what it says it is – a line of credit based on the equity in your home. Wait, what?

When you apply for a HELOC, the lender will determine how much equity you have in your home by conducting an appraisal. Equity is determined by taking the market value of your home, less the amount of money you owe. For example, your home is worth $500,000 and you have $450,000 remaining on your mortgage. So, you have $50,000 worth of equity which can be a line of credit for you to use when needed (only some lenders lend 100% of equity).

If you decide to use the line of credit, it would essentially be a 2nd mortgage on your home that would be paid off when you sell your home.

Think a HELOC is a good option for you? Reach out to us. We are happy to refer you to local lenders!

Building Equity

Now that we’ve explained equity, consider building more equity in your home! Even if you aren’t planning on selling anytime soon, it’s never a bad idea to build equity. Consider adding exterior amenities such as a deck or patio. Get the basement finished or add an additional bathroom. The Cost Vs. Value report or insight from a Realtor is a great way to ensure you are on the right track!

One last quick tip – consider making an extra payment each year on your loan to help reduce your monthly interest expense a little bit at a time.

Preparing for your next adventure!

Downsizing, whether to a smaller home or a specialized community, can seem overwhelming. You need experienced professionals who can guide you through the process.

That’s where we come in!

Our Team has created the Platinum Program which has everything you need in one place to reduce the stress of selling your home and assisting you with your next move.

The first step: Planning

Listening to you and understanding your specific needs and concerns is our first step. During our first meeting, we will design a custom plan for your move based on your needs.

Some of our specialized services:

• Communicating with multiple family members about the move.

• Referring you to quality vendors for services: everything from contractors to organizers. We’ve got you covered!

Once we have a plan in place, we move to Step 2: Preparing the Home for Sale

Preparing your home for sale is an important part of the process and it will ensure you sell for the best price. Preparing the home consists of:

• Decluttering and organizing

• Donating or selling items

• Hauling furniture

• Considering storage solutions

• Hiring contractors (we have plenty of recommendations) for repairs/updates and for moving items.

Home Valuation

Our program  includes a free Home Market Analysis to assess the value of your home in its current condition. We can also provide a referral to an experienced appraiser, if needed.

Should you choose to do repairs and updates to your home, we can re-assess your home’s value before listing it for sale.

Staging & Professional Photography

Staging and professional photography is critical to ensuring you get top dollar for your home. The Platinum Plan includes:

• A paint consultation.

• Staging with the furniture already available in the home with a staging professional.

• Virtual staging in the event the home is going to be listed vacant.

• Professional photography and marketing collateral.

With the Platinum Plan, we all work together to minimize your stress and create a positive experience. Ready to make your next move? Reach out to us and mention the Platinum Plan!

Solar Power & Your Home

Solar panels are appearing on roofs of homes in neighborhoods throughout the area. As systems become more efficient and government tax incentives make solar energy more affordable – and even an income producer in some cases – an increasing number of homeowners are taking the plunge into renewable energy. 

In fact, increased affordability in recent years has allowed the United States to pass Japan to its current rank of 4th in the world in solar energy production, behind major producers that include Germany, China and Italy. 

Is solar right for you? 

Rooftop solar panels, also known as photovoltaic (PV) systems, are the most common solar technology used for homes. Today, almost 450,000 homes and businesses have solar power systems, according to the Solar Energy Industries Association.

Over the past few years, the cost of solar panel systems has decreased dramatically — more than 50% since 2010 — making this energy-producing tool a more affordable option for many homeowners. If you are installing solar on your residence, government incentives (Residential Renewable Energy Tax Credit) further increase the affordability. The Federal Government offers significant tax incentives for homeowners who install approved renewable energy systems; these incentives expire in 2021. A website, www.dsireusa.org, offers local details of grants and other incentives available to homeowners. Another website, http://www.energystar.gov/about/federal_tax_credits, details Federal Tax Credits as well as instructions on how to apply for the credit.

Worried about aesthetics? 

If you don’t like the look of traditional solar arrays, you can now buy solar-powered rooftop shingles that blend seamlessly into your roof. Both Dow and CertainTeed manufacture solar shingles that are similar in efficiency to traditional solar panels. Installation costs are slightly higher for solar shingles; however, if you need to install a new roof before installing solar panels, this option may save you money.

My community has an HOA. Can I install solar?

Two dozen states, including Maryland have “solar access rights” laws that limit homeowner associations from banning solar panels. This law overrides your homeowners’ association contract that restricts you from installing the panels. This doesn’t mean your homeowner association can’t place a few community restrictions; HOAs can still enforce where to put your panels or how to install them– these laws usually say that some restrictions are still possible. But if your HOA denies your request to have solar panels installed, you can recite the law, or, in the worst case scenario, you can sue your HOA and let the courts decide.

I’ve got a long-term lease on my solar panels and now I want to move.

You have options. If you plan to sell your home, solar energy companies make it easy to transfer the lease for solar panels to a buyer. Some will also transfer your solar panel system to your new home. If you plan to transfer your panels to a buyer, speak with your Realtor® about disclosing lease costs as well as promoting energy savings. Not all buyers are familiar with the benefits of solar, so it’s important to show that the added cost of a solar lease will also allow them to reap the benefit of reduced energy costs. Most solar leasing companies will allow the lease to transfer easily to a buyer, making the process a fairly painless part of the real estate transaction.

What is the real impact of solar panel systems on a home’s value? 

The impact on home value varies from market to market. In the past, appraisers have had difficulty finding comps to properly address the added value of solar panels, but that will change as more homes adopt solar. According to a recent study by the solar energy industry, the average sales price of homes with solar in the Baltimore Metro area is 2.52% higher than those without (approx. $13,667). However, the sample studied was not statistically significant. In fact, anecdotally, solar is still a novelty and may increase a buyer’s interest in a property but not increase their desire to pay more for such a property, particularly if they will be assuming a lease for solar panels. As such, the decision to adopt solar should not be based solely upon the potential for an increased selling price.

Sources: Solar Energy Industries Association, solargaines.com, pureenergies.com

- Debbie Pavlik

5 Pros and 5 Cons of Working in Real Estate

Her Mind Magazine reached out to me back in the fall to ask about real estate as a career for their December 2015/January 2016 issue. You can read the article here: http://hermindmagazine.com/wp/grow-your-career-work-force-development/

It’s hard to talk about real estate without laughing, crying and cursing but I managed to keep it professional during the interview. The author cut all but one or two sentences so that helped make me look better. 

Since most of what we discussed did not make the article, I thought I’d highlight a few Pros and Cons, followed by some advice for anyone thinking about getting into real estate: 

Pros:

1 - the barrier to entry is low

2 - the idea that you can create your own schedule is appealing

3 - you have some control over your income and your brand

4 - this is a career where you can be entrepreneurial and creative

5 - you own your business

Cons: 

1 - it can take several years to build your business (3-5 years)

2 - the market is very competitive: our Baltimore/DC community is saturated with agents

3 - it is expensive to be in this business

4 - the work can require evenings and weekends

5 - you are “on” 24/7 and it takes a lot of practice to shut it down and really rest

And bonus #6 (because who doesn’t want more “cons”): it’s getting harder to compete with big teams

Advice:

1 - join a team for faster learning and enjoy a compressed learning curve so that in 1 year, you’ll learn what normally takes an agent 3 years to learn

2 - give it time and commit to this adventure for several years

3 - at a minimum, hook up with a mentor for the first few years

Again, our local Central Maryland market is saturated with agents. It can take 3-5 years to really make the money you want, especially if you are a solo agent.

I am grateful that I get to do work that I love, but it’s not easy work. It takes commitment, stamina and patience. However, as someone who has built a successful and rewarding real estate business, I’m glad I jumped on the bandwagon 10 years ago. If you’re thinking about getting into real estate, shoot me an email and I’d be happy to share my experiences and advice.

- Wendy Slaughter

"Old School" real estate vs “New School" real estate

My buyer wrote an offer 4 days ago and we still don’t have it signed by the sellers.  

The listing agent’s sellers are on vacation and because the agent doesn’t know how to use electronic signing systems, he is taking much more time than is necessary to get this deal in place.

This delay impacts my buyer, the lender, the title company, contract time frames and of course, our confidence in getting the deal done. The seller could have been in jeopardy of losing these buyers due to frustrations and concerns.

 Let’s look at a real life example of the "old school" vs the "new school" way of working.

Imagine that your home is listed for sale and you’re on a vacation you planned months ago. You’re sitting under an umbrella by the ocean, your feet in the sand and a cold drink in your hand. You’re watching your friends and family have fun and it makes you feel happy. You deserve this down time. You glance at your phone and see that you received an email from your agent with paperwork needing your signature. Is your agent “old school” or “new school?"

 The next 3-4 hours of your vacation can play out in two ways:

#1 “Old School" 

The email says you have to print the attachment and sign and then scan back to the agent. Your blood pressure climbs. There is no printer in the vacation house you rented. You’re finally on vacation…one that you more than deserve…and you have to go back to the house, do some research about local Kinkos or UPS stores, call to make sure they are open and get directions, get their email address, send the document to them, go to the store to sign, have them scan back to you and then email it back to your agent. You’re mad. Your family is mad. You missed a great beach day. Tomorrow it will rain and you’ll be even madder.  

#2 “New School”

You gently place your drink in the sand, then click on the link in the email. The link takes you to Dot Loop and it says “click here to start signing.” You click once for each initial and signature and when you’re done, click “confirm signing.” You turn your phone off and pick your drink back up. You realize you’ve been outside for a while and it’s time to reapply your sunscreen.

 “New School” agents help their clients by using the latest technology so that deals are done faster and your life is easier. When you choose your realtor, ask about the systems, processes and technology that your agent is using. Enjoy your vacation and let your “new school” agent do the work for you.

-Wendy Slaughter

Sometimes you learn things, even when you don’t want to.....

Life lessons after a decade in real estate

Today is my 10 year anniversary of being in real estate. I truly can’t believe it. I was 35 when I earned my license and the year was 2006 - probably the worst year ever to get into real estate. I started out on my own and after about 3 years, I decided it was time to grow. That’s when I started The Wendy Slaughter Team. 

Over the past 10 years, real estate has taught me a ton about myself and life.

Here are my top 5 takeaways:

1 - Your values are clarified.

Do you really value your family or are you just saying that? Your health? Your home? Your friends? Look around you. What do you see? You made this life with your choices. Your priorities are reflected by what is physically around you and by the relationships you have with people you love.

Real estate asks a lot of you. You have to be firm in setting boundaries.

2 - Thicker skin is a must.

I came into this business as a “pleaser.” I had a hard time with the hard conversations. I wanted everyone to like me. I know it sounds immature and, at the same time, it rings true for many people, no matter what your age. No one wants to be disliked. 

This quality made real estate difficult for me in the beginning. It took a lot of work in the early years but I’m a much better realtor because I pressed on, learned, and grew into my thicker skin. I’m still caring and kind but I’m much better at having the hard conversations. You learn fast that you owe it to yourself and your clients. 

3 - Buddhists are right: nothing is permanent.

Change is a standard in this industry and in life. Regulations, technology, processes and forms change all the time. Contracts have grown to 70+ pages and we learn something new every day.

You have two choices: complain and try to fight the changes….or learn what the changes mean to your clients and the process and then adjust your systems to address the changes. Don’t waste your precious time and energy acting crazy about things that change and are out of our hands. 

4 - Life is better if you are a Lifelong Learner.

I love learning. I was a good student and I still love reading and listening to good books, attending webinars, watching TED Talks and documentaries. It sounds nerdy and I don’t care. Learning is fun. It keeps life fresh. 

One of my favorite TED Talks is about changing your body position in order to positively affect your body chemistry. This is great information for all us, especially teens.

https://www.ted.com/talks/amy_cuddy_your_body_language_shapes_who_you_are?language=en

5 - You can’t do this alone.

I spent 3 years as an independent agent: 2 years at Long & Foster and then my first year at RE/MAX. 

I realized that if I wanted to increase my production and still take great care of my clients - AND take vacations (and stay as sane as possible), I needed to build a team. I am forever grateful that Debbie Gottwals took that plunge with me when we started the Team back in 2009. 

#5 has been the best thing that I’ve learned.

Working with a Team allows me to live my work life with wonderful human beings. They are smart, funny, kind, supportive, energetic, motivated and their smiles and laughter make this work richer. My life is much more fun because I work with a really great team.

Support comes from home too. My husband, Jason, is committed to my work. He and the kids are the best squad I could ask for. 

This list could be 150 items long. I tried to stick to the important stuff. I’ll check back in when I’m 55 and let you know what else I’ve learned.

-Wendy Slaughter