by Kelley SingerMy dad needs a guardian, but he won’t go to the doctor. What should I do?
In Maryland, the law requires that a person seeking guardianship of an alleged disabled person present two certificates signed by qualified health professionals, along with a petition for guardianship. These certificates must be based upon a personal examination of the subject, and must detail the patient’s diagnoses, physical and mental conditions, cognitive function, everyday function, need for institutional care, and need for guardianship.
One of the certificates must be signed by a licensed physician, and the other can be signed by a licensed physician, licensed psychologist, licensed certified social worker-clinical, or nurse practitioner. In addition, one of the examinations must have occurred within 21 days prior to filing the petition for guardianship.
Frequently, an alleged disabled person’s medical team will decline to fill out the certificates, fearing a HIPAA violation. Even more frequently, the alleged disabled person will refuse to be evaluated in the first place, or a person who lives with or has control over the alleged disabled person might not permit the examination.
So, what can you do? In appropriate circumstances, you may file a petition with a Maryland court, requesting that two health care professionals be appointed in order to complete the necessary certificates. The court may hold a hearing and require the allegedly disabled person or the person not permitting the exam to appear and explain why the exam should not be allowed.
by Elizabeth BoweryStarting a New Business: Getting an Employer Identification Number (EIN)
Starting a New Business: Getting an Employer Identification Number (EIN)
After a business founder establishes a new business entity, in most cases they will need to obtain an Employment Identification Number (EIN) in order to begin operation of the business. An EIN enables a new business to interact with the government, financial institutions, and other businesses. Although the Internal Revenue Service (IRS) only mandates EINs for certain business entities (e.g., partnerships and corporations), any business can obtain one. For more details on each entity type and their requirements, see my previous post: “Starting a new business: Deciding the type of business entity to establish.”
Tax Identification Numbers
The IRS uses Taxpayer Identification Numbers (TIN) to identify individuals, businesses and other entities for tax purposes. Among the multiple kinds of TINs, the most prevalent ones in a business context are the Social Security Number (SSN) and the Employer Identification Number (EIN). An SSN is issued to individuals by the Social Security Administration, and an EIN is issued to individuals (e.g., sole proprietors) and other business entities (e.g., partnerships and corporations) by the IRS.
Businesses That Need An EIN
A business needs an EIN if any of the following apply:
- It has one or more employees
- Operates as a partnership
- Operates as a corporation
- Files any of these tax returns: employment, excise, alcohol, tobacco or firearms
- Has a Keogh plan (A Keogh plan is a tax-deferred retirement plan available to self-employed individuals or unincorporated businesses).
- Withholds taxes on income, other than wages, paid to a non-resident alien, or
- Is involved with certain types of organizations, including, but not limited to: trusts, estates, non-profit organizations, real estate mortgage investment conduit, famers’ market cooperative, or plan administrators. For more information, see “Do you need an EIN?”
Benefits of an EIN
There are multiple benefits to obtaining an EIN for your business—even if it is not required:
- Separation of Personal and Business Finances: For sole proprietors, limited liability companies, and other business entities, it is important to keep business and personal assets separate. By using an EIN on business-related documents, it helps to create a clear distinction between business and personal transactions.
- Opening Business Bank Accounts and Securing Business Loans: Many banks require an EIN to identify a business before offering to open a business bank account and/or providing a business loan.
- Hiring and Paying Employees: For a business to hire and pay W-2 employees, the IRS requires an EIN to report wages and withhold taxes.
- Protection from Identity Theft: Providing an EIN instead of an SSN for business purposes can reduce the risk of identity theft. This is especially relevant for sole proprietors or other individuals who are frequently required to provide their SSN for business transactions.
- Compliance and Tax Filings: Many businesses secure an EIN to remain compliant with IRS regulations and file their federal tax returns.
As business attorneys, we assist business owners at every stage of ownership, offering guidance in selecting the best entity, drafting customized governing documents, and providing ongoing business counsel. We can help you navigate legal complexities so you can focus on growing your business.
by Steve LewickyMaryland Tax Changes
The Maryland General Assembly ended its annual legislative session earlier this month. Here is a quick summary of important changes to the state’s tax code:
Increased income taxes for high earners
Beginning in Tax Year 2025, personal income tax rates were increased to 6.25% on income above $500,000, and to 6.5% on income above $1 million. In addition, a 2% tax surcharge will be imposed on capital gains received by taxpayers earning over $350,000 per year. Taxpayers earning above $200,000 per year also will have the value of their personal deductions phase out depending on the level of taxable income above that threshold.
Sales tax on data services and IT services
For transactions on and after July 1, 2025, there will be a 3% sales tax on technology and data services, and related party transactions. Further guidance on the application of this new tax is expected from the Maryland Comptroller during June 2025.
No change to estate tax exemption
A proposed reduction of the Maryland estate tax exemption, from $5 million to $2 million, was not enacted. The Maryland estate tax exemption remains at $5 million.
Increases to government fees and excise taxes
A number of government fees will increase, effective July 1, 2025, including: The vehicle emissions inspection fee will increase from $14 to $30; The cannabis sales tax will increase from 9% to 12%; The vehicle excise tax will increase from 6% to 6.5%; The sports betting tax will increase from 15% to 20%.
by Samantha ChanReceived a Property Assessment Bill in Maryland? Here’s How to Appeal
If you’ve recently received your Real Property Assessment bill and believe your home’s assessed value is incorrect—whether too high or too low—you have the right to appeal the decision.
In Maryland, property assessments are managed by the Maryland Department of Assessments and Taxation (SDAT). As a homeowner, you have the right to challenge your assessment, but it’s important to act quickly and understand the steps involved.
Step 1: File a Supervisor’s Level Appeal
You can file an initial appeal—called a Supervisor’s Level Appeal—within 45 days from the date listed on your assessment notice. This appeal can be submitted in writing and is typically reviewed by your local SDAT office.
Step 2: Appeal to the Property Tax Assessment Appeal Board (PTAAB)
If you’re not satisfied with the outcome of the Supervisor’s Level appeal, you can appeal to the Property Tax Assessment Appeal Board (PTAAB) in your county. This must be done within 30 days of receiving your Final Notice of Assessment. At this level, you may submit a written appeal or request an in-person hearing before the board.
Step 3: Appeal to the Maryland Tax Court
Still disagree with the outcome? You can escalate the matter by appealing to the Maryland Tax Court. This must also be done within 30 days of receiving the PTAAB’s decision. Note that proceedings in Tax Court are exclusively in-person.
Need Help Navigating the Appeals Process? Appealing a property assessment can be a confusing and time-sensitive process. From writing persuasive appeals letters to representing you at in-person hearings, our attorneys are here to support you every step of the way—from the Supervisor’s Level to PTAAB to Maryland Tax Court.
by David HisleProtection From Threats of Violence Using Protective Orders and Peace Orders
If you are experiencing domestic violence, abuse, threats, harassment or stalking in Maryland, you may need to seek protection from the court in the form of either a protective order or peace order. Protective orders and peace orders are civil orders issued by a judge that order a person to refrain from certain acts against others. The relationship between the petitioner (the person seeking protection) and the respondent (the person alleged to have committed the prohibited act) ultimately determines whether a protective order petition or peace order petition should be filed.
A protective order should be filed in cases involving domestic / familial or intimate relationships such as (1) current or former spouses; (2) individuals who have been in an intimate relationship and have lived together for at least 90 days within the last year; (3) individuals related by blood, marriage, or adoption; (4) individuals who have a child together; (5) parents and children; and (6) vulnerable adults. You may also file a protective order on behalf of a minor child or vulnerable adult.
The grounds for a protective order include (1) an act that caused serious bodily harm; (2) an act that placed the petitioner in serious bodily harm; (3) assault in any degree; (4) rape or sexual offense; (5) attempted rape or sexual offense; (6) criminal stalking; (7) revenge porn; or (5) false imprisonment.
Protective orders last for up to one year but may be extended up to two years and even become permanent. Protective order petitions may be filed in either District Court or Circuit Court. If the courthouses are closed, the Court Commissioner will handle the initial hearing.
A peace order should be filed in cases in which the parties do not have any domestic / familial or intimate relationship such as (1) neighbors; (2) co-workers; (3) friends; (4) roommates (with no intimate relationship); or (5) any individuals who do not qualify to file for a protective order.
The grounds for a peace order include (1) an act that causes serious bodily harm; (2) an act that places the petitioner or the petitioner’s employee in fear of imminent serious bodily harm; (3) assault in any degree; (4) false imprisonment; (v) harassment; (6) stalking; (7) trespass; (8) malicious destruction of property; (9) misuse of telephone facilities and equipment; (10) misuse of electronic communication or interactive computer service; (11) revenge porn; or (12) visual surveillance.
Peace orders last up to 6 months and may be extended up to one year. Peace order petitions may be filed in District Court. If the courthouse is closed, the Court Commissioner will handle the initial hearing.
by Anthony KratzShould I Choose a Will or a Living Trust?
One of the most frequent questions that I am asked is whether it is better to have a will or a living trust. What are the differences between them and which one is right for you?
While both a will and a living trust are tools for distributing your assets after you pass away, they function differently and have key differences that may affect how your estate is managed.
A will is a legal document that specifies how your assets will be distributed after your death. It also designates a personal representative (sometimes called an executor) to manage your estate. If you have minor children, a will should also nominate a guardian for them. After you pass away, a will must go through probate, which is the court-supervised process that can be time-consuming and add expenses. Additionally, probate is a public process, meaning anyone can access your will, estate inventory, and other documents once they are filed with the courts.
A living trust can serve as a substitute for a will. A trust is a legal arrangement in which you transfer assets to a trustee, who manages those assets for the benefit of your beneficiaries. Often you will serve as your own trustee, and you will also be the primary beneficiary during your lifetime. One of the key advantages of a trust is that it provides a management structure for your assets during your lifetime, so that your selected successor trustee can manage the trust for you, if you are no longer able to manage your financial affairs yourself. After death, the assets held in a trust can pass to your beneficiaries without probate, meaning your estate can be distributed quickly and privately. Trusts can also offer more control over how assets are managed and distributed to your beneficiaries, and they can address things like disability planning or care for minor children.
Which Option Is Best for You?
A will is usually a simpler document and may be a good option for smaller estates or situations where distributions are expected to be straightforward. A trust, though more complex, provides privacy, avoids probate, and offers greater control over your assets during life and after death.
To make an informed decision about your estate plan, it is important to consult with a knowledgeable estate planning attorney who can evaluate your specific needs and guide you in choosing the best option for your situation.
by Verena MeiserUnderstanding UTMA Accounts: History, Purpose, Limitations, and Risks
A Uniform Transfers to Minors Act (UTMA) account is a type of custodial account that allows assets to be transferred to a minor with the help of a custodian, typically a parent or guardian. The account is established for the benefit of the minor, with the custodian managing the account until the child reaches the age of majority, which is typically 18 or 21, depending on the state.
History and Introduction of UTMA Accounts
The UTMA was introduced in 1986 as a way to simplify the process of transferring wealth to minors. It replaced the older Uniform Gifts to Minors Act (UGMA), which had been in place since 1956. The key difference between the two is that UTMA accounts allow for a wider range of assets to be held in the account, including real estate and other property, whereas UGMA accounts were primarily limited to securities, such as stocks and bonds.
The UTMA was developed as part of a broader push to streamline the financial management of minors’ assets, and it gave parents and other benefactors an easier way to gift money and assets to children without the complexity of setting up a trust. It also offered the flexibility of allowing custodians to make decisions on behalf of the child until they reached legal adulthood.
Reasons for the Introduction of UTMA Accounts
The introduction of the UTMA was largely aimed at addressing the need for a simpler and more flexible way to transfer assets to minors. Before the UTMA, wealthier families often used trusts, which could be complicated and expensive to establish. With the introduction of the UTMA, many of these families could now pass down wealth without the administrative burden of setting up a full trust.
Moreover, UTMA accounts allowed for a wider variety of assets to be transferred, enabling custodians to manage everything from cash and securities to real estate and intellectual property. This flexibility made UTMA accounts a more attractive option than UGMA accounts for many individuals looking to gift assets.
Limitations and Risks of UTMA Accounts
While UTMA accounts offer many advantages, they come with a set of limitations and risks that need to be considered:
Irrevocable Transfers: Once assets are transferred into a UTMA account, they are no longer considered the property of the donor and cannot be reclaimed. The funds are irrevocably gifted to the minor, regardless of their future needs or wishes.
Age of Majority: One of the most significant drawbacks is that the minor will gain full control of the account when they reach the age of majority, which varies by state (typically 18 or 21). At that point, the child can access and use the funds as they wish, potentially leading to misuse of the money for purposes the custodian might not approve of.
Limited Use of Funds: While the assets in a UTMA account are intended to be used for the minor’s benefit, the definition of “benefit” is broad and often includes a wide range of expenditures. However, there is no legal requirement that the custodian must use the funds for the minor’s education or other specific needs. This lack of restriction can lead to mismanagement of the funds.
Tax Considerations: UTMA accounts are subject to the “kiddie tax,” meaning the income generated by the account is taxed at the child’s rate up to a certain threshold, after which it is taxed at the parent’s rate. This can sometimes result in a higher tax burden if the child’s unearned income exceeds certain limits.
No Control for the Benefactor: Once the funds are in the UTMA account, the custodian has no further control over how the minor uses the money. While this provides the minor with financial independence, it also means that the benefactor’s intent for the funds may not be carried out as envisioned.
Conclusion
UTMA accounts have been an important financial tool since their introduction in 1986, offering a simplified method of transferring assets to minors. While they have clear advantages, such as ease of transfer and flexibility, it is important for custodians and donors to be mindful of their limitations and the risks they present, particularly regarding the age of majority and the potential for misuse of funds. Understanding these aspects is crucial for anyone considering the use of a UTMA account as part of their wealth planning strategy.
by Steve LewickyFederal Employment Law: Key Takeaways from Attorney Steve Lewicky
In this recent interview, attorney Steve Lewicky joins Brian Kuhn, Certified Financial Planner at Wealth Enhancement Group, to discuss the latest developments in federal employment law. From court rulings that impact thousands of probationary federal employees to the implications for government contractors facing early termination, this conversation is packed with insights for federal workers navigating uncertain times. Watch the full video below and read on for a detailed summary of the key takeaways.
Watch the full interview on YouTube
Federal Employment Law: Key Takeaways from Attorney Steve Lewicky
About the Speaker
Steve Lewicky is an attorney in Maryland focusing on business law, litigation, and federal employment matters. His firm, located in Howard County, Maryland, regularly advises government employees and contractors on their legal rights.
What’s Happening Right Now in Federal Employment Law?
According to Lewicky, his firm is fielding an influx of calls from both current and former government employees, as well as federal contractors, in light of recent developments. Two major federal court cases—one in Maryland and another in the Northern District of California—have resulted in temporary restraining orders preventing the mass termination of probationary federal employees.
The Maryland Case: A Turning Point
The Maryland recently ruled that the government cannot terminate large numbers of probationary employees without due process—specifically, without providing a performance-related reason or advance notice. Thousands of employees have received notices placing them on administrative leave or informing them of termination, but the court issued an emergency injunction due to the procedures that were employed.
The court ordered that employees be reinstated immediately, and the government was required to submit a written status report confirming compliance.
Can the Government Still Lay Off Federal Employees?
Yes, but only if proper procedures are followed.
Unlike private-sector employment—which is generally “at-will”—federal employment involves more protections. Government employees cannot be terminated arbitrarily, and different rules apply depending on whether someone is a probationary employee or not.
- Probationary Employees: Limited appeal rights. The probationary period may last 1–2 years and can apply to new positions even if the person has served in government for years.
- Non-Probationary Employees: Protected by the Merit Systems Protection Board (MSPB), which allows them to appeal terminations, request reinstatement, back pay, and in some cases, attorney’s fees.
Lewicky emphasized that even probationary employees have some appeal rights, and recent rulings show that courts are scrutinizing how terminations are being handled.
Reduction in Force (RIF): Another Legal Consideration
The government may conduct a reduction in force for budgetary or organizational reasons, but there are also strict rules:
- Advance notice must be given.
- Affected employees must be informed of job placement options.
- In some cases, states must be notified to offer support to displaced workers.
Again, Lewicky stressed that while RIFs are legal, failing to follow the proper process can make the actions unlawful.
What About Federal Contractors and Subcontractors?
Federal contractors are also facing increased uncertainty. While every contract is different, most contain a “termination for convenience” clause allowing the government to end the contract at any time—even if performance has been adequate.
However, when this happens:
- Contractors must cease work immediately.
- Contractors must document all costs associated with the wind-down.
- The government must compensate for incurred costs and unpaid work completed.
Lewicky noted that contractors should seek legal counsel immediately upon receiving a termination notice due to the complex and strict timeline involved in appealing or negotiating a fair settlement.
Legal Support and Consultations
Steve Lewicky’s firm offers initial consultations, either via Zoom or in person, to help federal employees and contractors understand their rights and options. They’re currently speaking with a high volume of individuals affected by these changes and are available to assist with legal strategy and appeals.
Conclusion
If you’re a federal employee or government contractor navigating recent changes, it’s more important than ever to understand your rights and the proper legal procedures. These recent court rulings show that the government must follow specific rules, even in times of large-scale employment changes. Whether you’re facing termination, administrative leave, or contract wind-down, speaking with an experienced federal employment attorney can help protect your interests.
