Common questions answered by our legal experts.
How can a lender reduce the risk of loss?
Creditors who are assertive and act to protect their interests in their debtors’ specific property are rewarded over those who wait or hope to be paid. Usually, the adage “first in time, first in right” applies to property that has multiple creditors making claims against it, but security interests need to be “perfected” as to other creditors. Many industry-specific liens and security rights have specialized details and enforcement procedures. Due to the myriad types of obligations and relationships between borrowers and debtors, consulting with counsel is advisable.
Brian D. Lyman, Hillman, Brown & Darrow, P.A.
What issues arise in planning for transferring a family legacy property or closely held business to the next generation?
Whether preserving legacy property, such as a farm or vacation home, or transferring a family business, the governance provisions are of equal or greater importance than other considerations. Such planning is a mix of tax, legal, and family considerations. Although each situation is different, a primary concern is control and governance: how will the decision-making power be handled, and what rights will minority members have if they disagree? To do it right, a successful plan needs to establish a governance plan that balances the legitimate concerns of all stakeholders. Franke Beckett LLC brings both planning and litigation experience to the table in helping families implement effective succession planning.
Jack K. Beckett, Franke Beckett LLC
How does a person who is about to become involved in a family law problem select the right lawyer?
1) Start by checking the lawyer’s rating in Martindale-Hubbell, a publication which rates attorneys based on evaluations from one’s peers. 2) Inquire of friends who have been through a similar situation. 3) Inquire of lawyer friends you may have. 4) Ask people at the courthouse who work for the court in the family law division. 5) Confer with more than one lawyer to make certain that you are comfortable with the person selected. Lawyers are not “one size fits all.” Determine what you are looking for—super aggressive, cerebral, or warm and fuzzy. Look for someone who is responsive in getting back to you, who will not delegate duties to others, and who specializes in the issues that are likely to be involved in your case. This is a very important decision — select wisely.
Ron Naditch, Ronald M. Naditch, P.A.
What is Enhanced UIM?
Enhanced UIM is coverage on your policy that protects you if the at fault driver has a lower policy than what you carry. This “enhances” or increases your coverage, so that you have more insurance coverage to protect YOU if you are injured by someone else’s carelessness. This is typically a minimal cost, and your health and a full recovery are worth it.
Deborah Potter, Potter Burnett Law
Should I add my child to my deed to make things easier when I pass away?
For many of us, our home is one of the most significant assets in our estate and we want to make sure it passes to our loved ones with ease. Most people think adding a child to their deed is a simple and inexpensive solution, however, there are serious consequences to consider. Title issues, gift tax implications, third-party creditor claims, and capital gains tax issues are just a few reasons we do not recommend this technique. You should always consult with your attorney on the titling of your assets to ensure a successful estate plan.
Jon Gasior, Sinclair Prosser Gasior
Will a corporation protect my personal assets?
I’m often asked to set up companies to help clients limit their liability. Forming a corporation or LLC can largely achieve this, but it’s not a cure-all. You can be liable for torts you personally commit. If you ignore corporate distinctions by commingling company money with your own or treating the company like an empty shell to do business, you could be personally liable for company debts. Don’t mix business with pleasure. If you don’t treat your company as a separate entity, neither will the law.
Jonathan E. Pasterick, Hillman, Brown & Darrow, P.A.
As the majority owner of a business what obligations do I owe to the other owners/members?
Statutory and common law obligations are continuously changing which influence ownership dynamics, require corporate officers and LLC members to uphold a duty of loyalty, and exercise prudence in decision-making. Corporate governance documents, such as By-Laws or Operating Agreements, may introduce additional obligations. Compliance is essential to avoid legal exposure. Given the unique characteristics of your business, consulting with an experienced business attorney is advisable for a comprehensive review of these documents and to understand specific obligations. This is particularly critical before significant business decisions like mergers or sales to prevent disputes and potential litigation, thus safeguarding the business’s continuity and minimizing legal liabilities associated with decision-making processes.
Frank Lozupone, Bowman Jarashow Law LLC
What does McNamee Hosea offer its clients that separates it from other law firms?
McNamee Hosea attorneys always provide their clients with consistent and clear communication to solve whatever legal problem needs to be solved. Whether your legal problem involves a business dispute, an estates and trust issue, litigation, employment, zoning, contract, criminal defense, bankruptcy, or anything in between, you can trust that McNamee Hosea attorneys will be understanding and empathetic. For more than forty years, our skilled trial attorneys and advisors have provided creative solutions to complex legal issues. Because of our diverse practice experience, we can handle all of your legal needs within our Firm, resolving them effectively and efficiently.
John P. Lynch, McNamee Hosea, P.A.
When can I file for divorce?
Last year, Maryland did away with “fault-based” grounds for divorce, including adultery and desertion. A new law establishes three new “no-fault” grounds, namely mutual consent, six-month separation, and irreconcilable differences, and allows you to get into court much faster. While fault has been removed as a prerequisite to filing, your spouse’s conduct and the circumstances giving rise to your divorce remain important considerations and could impact the Court’s decisions regarding custody, spousal support, property, and attorney’s fees. An attorney can help you navigate these issues.
Marietta B. Warren, Hillman, Brown & Darrow, P.A.
What happens when a spouse takes or misuses Marital Money?
An Issue that can come up in a divorce/family law case involves the question of the possible misuse of Marital Funds or other property during the parties’ marriage to one another, such as the taking of marital money to pay for lavish vacations and uses outside of the marriage. Recent court decisions have affirmed that the Court in Maryland has the authority and may make an adjustment to compensate the injured spouse for the other spouse’s misuse of funds (termed a “Dissipation of Assets”) which generally means the use of funds for purposes outside of the marriage during a time of irreparable breakdown of the marriage and/or to reduce the amount of assets available to their spouse at distribution.
Kendall Summers, Esquire, Kendall Summers Law
I am under contract on a home. What is title insurance and do I actually need it?
Yes! For most people, a home is the single largest investment they will make in their life. For a one time fee at settlement, owner’s title insurance protects your property rights for as long as you or your heirs own your home. There are many hidden issues that may pop up after your home purchase. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen legal and financial title discrepancies. Unexpected issues that could arise include: (1) outstanding mortgages and judgments or a lien against the property because the seller has not paid taxes; (2) pending legal action against the property that could impact you; or (3) an unknown heir of a previous owner who is claiming ownership in the property. You insure everything else that is valuable to you – your life, car, health… the same should apply for your largest investment!
Lee Ann Adams, Council Baradel
What can a lawyer do for me if I’m injured in a car crash?
Your lawyer can do more than simply help you get the best monetary result possible. A great lawyer can assist with the property damage settlement on your car (or settling the total loss) and getting you into a rental car while you wait. The lawyer will interview witnesses while the accident is fresh, including the investigating police officer, obtain the light sequence from the State Highway Administration (or black-box data in a commercial truck crash), look for physical evidence, such as skid marks or crash debris, run tag traces, and more. Your lawyer will also coordinate paying the doctors either through health insurance or Personal Injury Protection Coverage (PIP) and arrange treatment with a quality doctor if needed, all while ensuring no immediate out-of-pocket payment is required from you.Your lawyer will also maximize the available insurance coverage available to you by coordinating different insurance policies that you may not even know exist, will know the value of your case for settlement purposes, can advise you on litigation strategy, and help you obtain the maximum value for your case. Remember, you should only pay if a lawyer wins your case. So contact a lawyer immediately who handles nothing but car, truck or train crashes if that’s how you were injured.
Rick Jaklitsch, The Jaklitsch Law Group | 1-(855)-Big-Dog1
I would like to give my residence to my children. What are the tax implications?
A lifetime gift of your residence may not be the best option if your residence has increased in value since you purchased it. If you make a gift, the recipient takes your basis in the property and will have to pay taxes on the gain if they sell in the future. If, however, you own your residence at your death (or have a life estate in your residence), your estate will receive a stepped up in basis to the fair market value. Because of this, the tax liability associated with the increase in value during your lifetime disappears.
Deborah F. Howe, Franke Beckett LLC
My employer is asking me to sign a non-compete for my job. What should I be on the lookout for?
Non-competes are a balance of protecting an employer’s interests, such as goodwill and confidential information, with your ability to make a living. You should be thinking about your marketability in the workforce if you were to leave. Ask to limit the geographic reach as close as possible to your current location and ask the time limit to be as short as possible. Non-competes can be a breeding ground for litigation, so addressing these items upfront can be a huge cost savings for you. Still unsure? Ask your local employment attorney for advice prior to signing.
Steven A. Brown, McAllister, DeTar, Showalter & Walker, LLC
Should I put my adult children’s names on my bank accounts and deed to my house?
Putting adult children’s names on bank accounts and other assets is one of the biggest estate planning mistakes people make. When adding your children to accounts or other assets, you are giving your children an ownership interest in your assets, which could subject your assets to your children’s creditors. There could also be unintended negative tax consequences when the kids sell certain assets after your death. Finally, you could be creating animosity in the family if you have multiple children but only add one child to your accounts. This can be avoided with proper estate planning.
Greg Jimeno, Jimeno & Gray, P.A.
My spouse and I have agreed to terms for a Marital Settlement Agreement (MSA). What’s next?
Congratulations on trying to reach an amicable divorce. It’s always better when you and your spouse agree to the terms instead of a court ordering them. Even if you agree on terms related to your children, support, and property/financial matters, it’s best to have an attorney review the terms of your agreement and help you draft an MSA. People often proceed without an attorney and encounter issues because they didn’t understand their rights or the terms of the agreement.
Sarah E. Brown, Hillman, Brown & Darrow, P.A.
Is Maryland now a “No Fault” Divorce State?
Actually – YES. In Oct 2023, Maryland made some major revisions to its divorce laws.
Specifically, the legal grounds for divorce were changed from fault grounds (like adultery, vicious conduct etc.) to three non-fault grounds: (1) “Consent” where the parties have created a Marital Separation Agreement (MSA) resolving all issues; or (2) a 6-month Separation (now including separate living in the same house); or (3) for Irreconcilable Differences. The realities of unkind and harsh treatment, adultery, etc can still be considered by a court in its consideration of property division and alimony support, however. Overall these changes seem to be promoting a less hostile and contentious divorce process. Call us if you would like to learn more!
Kendall Summers, Esquire, Kendall Summers Law
Have there been any recent changes to how severance agreements may be used with departing employees?
Yes – and they are significant. The National Labor Relations Board (NLRB), an independent federal agency, recently announced that severance agreements with broad non-disparagement and confidentiality clauses are unlawful because they burden employees’ right to organize. Not only may employers not offer or agree to those clauses going forward, NLRB says that even enforcing old agreements with them is an unfair labor practice. Employers should consider consulting with a lawyer about severance agreements new and old to ensure compliance with NLRB’s new position.
Dave Dorey, Partner | Liff Walsh & Simmons
With thousands of lawyers out there, how do I find the best lawyer to handle my car crash?
You wouldn’t hire a doctor who says “I handle dermatology, allergies, lung cancer and oh, by the way, I do brain surgery on the side.” Lawyers that limit their practice to car crash cases will most likely get much better results than lawyers who do not. We live and breathe those issues daily. Start there – find someone handling only the problem you have. Then check them out on-line, with a judge you may know, through MartindaleHubble.com (find lawyers with an “AV” rating), ask other lawyers, read client reviews, look in Faces of the Chesapeake Magazine, ask bailiffs or courtroom clerks who watch lawyers in court every day. Find lawyers that have built their reputations on trial results. Insurance adjusters know which lawyers will push hard for the best results and which will settle easily for less money. You need that information too.
Rick Jaklitsch, The Jaklitsch Law Group | 1-(855)-Big-Dog1
I am planning to sell my business. What can I do to ensure the process goes smoothly?
First, make sure your financial records are in good order. This will ensure the buyer can conduct an efficient review of your business. If your business is subject to any loans or lines of credit, confirm the payoff and lien release process with your lender. If your business leases commercial space, review your lease and engage your landlord early about the assignment process so you and the buyer have sufficient time to get consent to an assignment or to negotiate early termination of the lease. Lastly, retain counsel experienced in business transactions who can assist with the negotiations, document preparation, and closing.
Ryan Beard, Kagan Stern Marinello & Beard, LLC
How do I keep my house out of Probate for my family when I’m gone?
A “Living” or Revocable Trust is a common method used to avoid probate in Maryland. Transferring your home to the trust allows it to be handled outside of probate. A trust is not for everyone as it will cost more than just a Will. For someone with few assets setting up trust could actually cost more than the probate process. A Life Estate Deed is another great tool to use to transfer ownership of your home after your death. The life estate provides you with right to occupy and use the property, or receive benefits of the property, during your life time and at your death the person named as the remainder automatically becomes owner of the home.
Karen M. Authement, Esq., KMA Law Office
If I hire Iliff, Meredith, Wildberger, & Brennan, PC to represent me, will I be able to speak with my attorney throughout the entire case?
Yes. Iliff, Meredith, Wildberger & Brennan, PC, is a small, client-focused law firm. Every case is staffed by at least two attorneys. Our goal is to provide clients with ready accessibility to attorneys at all times. We work hard to ensure effective communication with clients from start to finish.
Benjamin Howard Meredith, Iliff, Meredith, Wildberger & Brennan, P.C.
Do I really need an attorney if I’m injured in car crash?
We often see people try to handle their injury claims themselves, thinking they can quickly settle directly with the insurance company. However, they realize after they’ve settled that their injuries were worse than expected and permanent. It is important to make sure your injuries are properly documented by doctors, that you get clear photographs of the scene and damage to the vehicles. It is best to contact an attorney as soon as possible after a collision in order to start preserving information, evidence and they will assist you in making the proper claim for benefits your entitled to. An experienced attorney will know how to fully explore all insurance available to cover your injuries and damages from a collision.
Karen M. Authement, Esq., KMA Law Office
I have my business name registered in my state. Do I also need to file for a federal trademark registration?
The need for a federal trademark registration depends upon, amongst other things, whether or not you plan to advertise using your business name outside of your local area. If so, a federal trademark registration will give you the broadest possible rights to advertise across the United States with your brand and will help prevent other businesses from trading on your business’ good reputation. It’s important to consult with a trademark attorney to make sure that your business name is not infringing the rights of another trademark holder and to make sure your brand is protected.
John N. Costello; McAllister, DeTar, Showalter & Walker, LLC
What is premises liability?
Generally, premises liability is when someone is injured as the result of a property owner’s negligence. Premises liability arises out of multiple situations; dog bites, lead paint, drowning, negligent security, as well as slips, trips or falls. A property owner’s responsibility to pay for personal injury damages depends largely on the type of property owner it is – i.e., commercial or private. The laws governing premises liability are complicated. If you have been injured on someone’s property you should contact an attorney immediately – evidence is often fleeting, and time is of the essence.
John Leo Walter, Esquire, Eastern Shore Legal
Will my bankruptcy appear in my credit report and how will it affect me?
In most cases, Bankruptcy will typically discharge all your debt liability, leaving you a much better Credit Score and out-of-debt after your discharge. When you then make timely payments, you can usually receive new credit at good rates within 10 months and obtain a Mortgage after two years. While the Bankruptcy will be listed on your Credit Report, Lenders make loans based on Debt Ratio, Income & credit worthiness. There are exceptions, but you will probably have little difficulty in re-establishing credit.
Cami Russack, RLC Lawyers & Consultants
