by Cynthia M. Lifson | Jun 8, 2017 | Notes from Annapolis
While it is true that government is not always the easiest entity to deal with, this year in Annapolis, the General Assembly passed HB 492, a bill that modifies Maryland’s Transportation Article. This new legislation should make tending to estate planning a little bit easier. Beginning October 1, 2017, a sole owner of a motor vehicle may designate a beneficiary of the motor vehicle to a specified beneficiary by noting the beneficiary on the title of the motor vehicle. This designation of a beneficiary may be shown by the words “transfer-on-death” or the abbreviation TOD. On the death of the owner of the motor vehicle, the ownership of the motor vehicle passes to the beneficiary if the beneficiary survives the owner. Such a motor vehicle passes outside of the decedent’s probate estate. Of course, if the designated beneficiary does not survive the death of the owner, then the motor vehicle is part of the estate of the deceased owner and will be subject to a probate action. This new legislation also calls for the adoption of regulations to implement the purpose of the bill. We can expect to see new forms – likely available on-line – to assist the owner of a motor vehicle in the process of directly designating a beneficiary. Many people already know to whom they wish to give their tangible personal property after they pass on, including their vehicles. Procedurally, this new law will give owners of motor vehicles a new option to dispose of an important asset. We can thank the General Assembly this year for this initiative, and most especially the chief sponsor...
by Cynthia M. Lifson | May 26, 2016 | Notes from Annapolis
Managing in the Digital Age & Modernizing Divorce Law Over the past few weeks, Governor Hogan’s staff has been busily reviewing bills passed by the Maryland General Assembly at the close of the 2016 session to ensure, among other things, that the bills meet the requirements of the United States and Maryland Constitutions. Then, in what is truly a joyous celebration of democracy, legislators and citizens gather in the Governor’s ceremonial chamber in Annapolis to witness the signing of various bills that will shortly be added to the Maryland Code. One of the more interesting bills passed by the Maryland General Assembly this year is the Maryland Fiduciary Access to Digital Assets Act. This new law empowers us to appoint fiduciaries, typically agents, personal representatives, or trustees, to manage our digital assets. Such assets in the form of computer files, e-mails, text messages, along with photos, videos, music and game files can be accessed not only by a person who created these assets but by another who is properly designated, consistent with the new statute. Such access will eliminate the uncomfortable and painful continuation of digital assets long after death. For example, it is not unheard of to get a LinkedIn notice five years after a person’s death about the person’s work anniversary. With this new statute, such messages can be stopped. The ability to appoint another to act on one’s behalf through the appointment of a fiduciary is not a new legal concept, but as we all know, the march of technology and its widespread uses has changed the way we do business. The opportunity to update estate...
by Cynthia M. Lifson | Mar 31, 2016 | Notes from Annapolis
The end of the 2016 session of the Maryland General Assembly is rapidly approaching. Spring is in the air and because of the “blizzard of bills” that has been introduced, bills are now receiving either unfavorable votes in committee or winding their way through the labyrinth of procedural steps in the General Assembly. This year, there has been significant and sustained interest in a topic that affects all of us: the balance between the opportunity for a person to start over after making bad choices and the need for the public to access court records freely. All of this interest has been intensified by our collective use of and reliance on the internet as a way to get information quickly and easily. This issue finds expression in some basic questions: To what degree should the public have unfettered access to court records? When, if ever, is it appropriate to permit a person convicted of a criminal offense to ask the court to expunge (in other words to wipe away) the public record of the conviction? Is it important to have a permanent paper record in a court file of cases filed but, at the same time, limit publication of these court cases on the internet? The General Assembly has grappled with these questions in more than a dozen bills dealing with the topic of expungement of court and police records. Proponents who favor expungement argue that criminal records that cannot ever be erased create unreasonable barriers to jobs and housing. Such barriers prevent the successful re-entry of offenders into the community after they have paid their debt to society...
by Cynthia M. Lifson | Jan 28, 2016 | Notes from Annapolis
The 2016 session of the Maryland General Assembly began officially in mid-January and is now in full swing. After Assembly’s prompt override of five bills vetoed by the Governor in 2015, we are now expecting a blizzard of new bills. This year, following the completion in 2015 of the freshman year of many new legislators in Annapolis, we are going to see a huge bump in the number of bills that will be introduced in 2016. New legislators, as well as the veterans, wish to make their mark on the Maryland Annotated Code. The deadline for legislators to timely introduce their bills is rapidly approaching. As is true every year, much of the Assembly’s energy will be taken up with considering the Governor’s budget, and this year, our representatives will spend significant time dealing with the Governor’s agenda on taxes – essentially wrangling over which group should receive tax breaks under the Governor’s plan. Some other expected hot topics will deal with reform of the criminal justice system in the aftermath of Freddie Gray’s death in Baltimore last year, end of life decisions, and changes in voting eligibility requirements. Advocates in the domestic violence arena will be seeking change in the definition of stalking. HB 155 and SB 278, bills cross-filed in both the House and Senate, alter the definition of stalking as a course of conduct that includes approaching or pursuing another where the person intends to cause or knows or reasonably should have known that the conduct would cause serious emotional distress. Under current law, the State must prove that the course of conduct is malicious and...
by Cynthia M. Lifson | Dec 11, 2015 | Notes from Annapolis
It may seem counter-intuitive during the holiday season, but giving gifts to others may generate a tax issue. The IRS defines a gift as any transfer to an individual where nothing is received in return (the full definition can be found here). This transfer can be in the form of tangible personal property (stuff), real property (land or a house), or intangible personal property (cash, stocks, and bonds). Gifts can also be in the form of a charitable donation or a necessary expense. It is important to consider how the federal government assesses these gifts in terms of estate planning. The total amount of a gift from a single individual to a single individual cannot exceed the annual gift tax exclusion for the current calendar year. For gifting in 2015, and in the upcoming New Year, this exclusion amount is $14,000. This means that a single individual can gift up to $14,000 to one person, without having to pay the federal “gift tax.” Spouses who choose to give jointly, a “split gift,” may give up to $28,000 to a person during the year without incurring a gift tax. There are no limitations on a donor with regard to the number of people who can receive a gift in a single year. For example, if a parent has five children and five grandchildren, that parent/grandparent can present each child and grandchild with a gift worth up to $14,000 without having to incur the gift tax. In this scenario, there are ten individuals who can receive a substantial gift for a hefty total of $140,000 in a single calendar year. Over...
by Cynthia M. Lifson | Oct 1, 2015 | News, Notes from Annapolis
In Maryland, October 1 is the date when most legislation passed by the General Assembly and signed into law by the Governor goes into effect. In 2015, some major changes occurred in family law. For divorcing couples who do not have minor children and who can come to agreement about property and alimony issues, there is no need to separate and wait one year before filing for an absolute (final) divorce based on the ground of mutual consent. This development significantly eases the path for couples who seek an uncontested divorce because no one year waiting period will be required before a complaint for absolute divorce can be filed in court. Another law related to grounds for divorce will also become effective October 1. While it may not have as much of an impact as the new ground of mutual consent for an absolute divorce, it will now be possible to apply for a limited divorce based on separation of the parties. Previously, before filing a claim for a limited divorce based on a separation of the parties, the moving party was required to prove that the separation of the parties was the result of a voluntary agreement by both parties. In certain difficult situations where parties cannot reach an agreement about separation, this change in the law will allow one of the parties to move from the marital home and begin a court proceeding promptly. While it is usually desirable to resolve pending issues between unhappy members of a couple without beginning the procedure with a court filing, in certain situations, a court action is the first step...
