In Maryland, a buy-sell agreement is a legal contract between co-owners of a business or property that outlines the terms and conditions under which one owner may sell their share to the other owner(s).
Buy-sell agreements are often used to provide a framework for the transfer of ownership in the event of certain triggering events, such as the death, disability, retirement, or voluntary departure of one of the owners. The agreement can also include provisions for the sale of an owner’s share if they default on a loan or violate certain terms of the agreement.
The buy-sell agreement can specify the price at which the owner’s share will be sold, as well as the terms of payment and any other conditions that must be met before the sale can be completed. It can also address issues such as how the business will be valued, who will be responsible for managing the business, and how disputes will be resolved.
A buy-sell agreement can be an important tool for protecting the interests of all co-owners and ensuring that the business or property continues to operate smoothly in the event of unexpected events. It’s important to work with a qualified attorney to draft a buy-sell agreement that meets the specific needs of the co-owners and complies with Maryland law.
Frequently Asked Questions
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What is Probate?
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What is a Tenancy in Common?
A tenancy in common is a type of ownership arrangement in which two or more people own a specific piece of property, such as a house or a piece of land. Each owner has a separate, undivided interest in the property, and each owner’s interest can be freely transferred or inherited.
In a tenancy in common, each owner has a right to occupy the property and use it in proportion to their ownership interest. For example, if two people own a property as tenants in common, one might own 50% of the property and the other might own 50%. Each owner would have the right to use 50% of the property and would be responsible for paying 50% of the expenses associated with the property, such as property taxes and maintenance costs.
Unlike joint tenancy, where each owner has an equal interest in the property, in a tenancy in common, the owners can have different ownership interests. Additionally, when one owner dies, their interest in the property passes to their heirs or beneficiaries, rather than automatically passing to the surviving owners. -
What is an Heir?
In Maryland, an heir is a person who is entitled to receive property or assets from the estate of a deceased person when the deceased dies without a valid will. Maryland’s intestacy laws govern how the deceased person’s estate is distributed when there is no will, and they determine who is considered an heir and what share of the estate each heir is entitled to receive.
Under Maryland law, the deceased person’s surviving spouse and children are typically the first in line to inherit the estate when there is no will. If the deceased person has no surviving spouse or children, their parents, siblings, or more distant relatives may be considered heirs and may be entitled to a share of the estate.
It is important to note that the rules governing intestacy and inheritance can be complex, and they may vary depending on the specific circumstances of the deceased person’s estate. In addition, the existence of a will, trust, or other estate planning documents can also affect who is considered an heir and what share of the estate they are entitled to receive. It is recommended to consult with a qualified attorney to understand the laws and rules related to inheritance and estate planning in Maryland.
Click here to visit RELEP’s Estate Planning webpage. -
What is a Joint Tenancy?
In Maryland, a joint tenancy is a type of property ownership arrangement where two or more people own the property together, and each owner has an equal share in the property. Joint tenancy can be used for various types of property, including real estate, bank accounts, and investments.
In joint tenancy, each owner has an equal right to use and enjoy the property, and all owners must agree to any decisions about the property, such as selling or refinancing it. If one owner dies, their share of the property automatically passes to the surviving owner or owners without the need for probate. This is known as the right of survivorship.
To create a joint tenancy in Maryland, the owners must include specific language in the deed or title that indicates their intention to create a joint tenancy with right of survivorship. The deed or title must also be recorded with the local land records office.
It’s important to note that in Maryland, joint tenancy may not be the best option for everyone. There are potential risks associated with joint tenancy, such as the risk of creditors going after the property and the possibility of unintended consequences if one owner dies. It’s always a good idea to consult with a qualified attorney to determine the best way to own property in your specific situation. -
What is Elder Law?
Elder law refers to a specialized area of legal practice that focuses on issues that affect older adults and their families. It covers a range of legal topics, including estate planning, long-term care planning, guardianship, healthcare decision-making, and financial exploitation prevention.
Elder law attorneys typically work with older adults, their families, and caregivers to provide legal advice and representation on a variety of issues related to aging. They may help clients create wills and trusts, establish powers of attorney and advance directives for healthcare, navigate the complex healthcare system, and protect their assets from financial exploitation.
Elder law also encompasses a range of issues related to elder abuse and neglect. Elder law attorneys may represent older adults who have been victims of physical, emotional, or financial abuse or neglect, and they may help clients take legal action against perpetrators of elder abuse.
Overall, elder law is an important and growing field of legal practice that helps older adults and their families navigate the complex legal issues that can arise as they age.
Click to visit RELEP’s Elder Law and Medicaid webpage. -
What is a Legatee?
In Maryland, a legatee is a person or entity named in a will to receive a specific gift or bequest from the deceased person’s estate. Unlike an heir, who is entitled to a share of the estate when the deceased person dies without a valid will, a legatee only receives the specific property or asset that was bequeathed to them in the deceased person’s will.
For example, if a deceased person’s will specifies that their antique furniture collection should be given to their friend John, then John is considered a legatee and is entitled to receive the antique furniture collection, while the rest of the estate will be distributed according to the terms of the will or Maryland intestacy laws.
It is important to note that the rules governing inheritance, wills, and trusts in Maryland can be complex, and they may vary depending on the specific circumstances of the deceased person’s estate. It is recommended to consult with a qualified attorney to understand the laws and rules related to inheritance and estate planning in Maryland.
Click here to visit RELEP’s Estate Planning and Probate webpage. -
What is a Tenancy by the Entirety?
In Maryland, a tenancy by the entirety is a type of joint ownership arrangement between spouses that provides additional legal protection to their shared property. It is only available to married couples and is similar to joint tenancy, but with some important differences.
Under a tenancy by the entirety, the property is owned equally by both spouses, and neither spouse can sell, transfer, or encumber their interest in the property without the other spouse’s consent. This means that if one spouse incurs a debt or a legal judgment against them, the creditor cannot force the sale of the property to satisfy the debt or judgment. Additionally, if one spouse dies, their share of the property passes automatically to the surviving spouse without the need for probate.
Tenancy by the entirety is recognized in Maryland as a form of joint ownership of real property and is only available to married couples. It can be created by including specific language in the deed that indicates the property is being conveyed to the couple as tenants by the entirety.
It’s important to note that while tenancy by the entirety offers legal protection to the shared property, it may not be the best option for everyone. It’s always a good idea to consult with a qualified attorney to determine the best way to own property in your specific situation. -
What is a Last Will and Testament?
A last will and testament is a legal document that outlines how a person’s assets and property should be distributed after their death. It allows the person creating the will, known as the testator, to name beneficiaries, appoint an personal representative (also known as an executor) to carry out their wishes, and specify how any outstanding debts and taxes should be paid. The will can also be used to name guardians for any minor children and make provisions for their care. A properly executed last will and testament can provide peace of mind and ensure that the testator’s assets are distributed according to their wishes.
Click here to visit RELEP’s Estate Planning and Probate webpage.
