Yes, in Maryland, a contract is typically required to sell property. A contract is a legally binding agreement that outlines the terms and conditions of the sale, including the purchase price, the closing date, and any contingencies or conditions that must be met before the sale can be finalized.
The contract is usually prepared by a real estate agent or an attorney and must be signed by both the buyer and the seller. Once the contract is signed, it becomes a legally binding agreement, and both parties are required to comply with its terms.
In addition to the contract, there are several other documents and steps that are typically required to sell property in Maryland. These may include a property disclosure statement, a title search and title insurance, a deed, and various other legal documents.
It’s important to work with a qualified real estate professional or attorney who is familiar with Maryland’s real estate laws and regulations to ensure that all necessary documents and steps are completed correctly and on time. This can help ensure a smooth and successful sale of the property.
Frequently Asked Questions
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What is Probate?
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What does a Health Care Power of Attorney do?
A healthcare power of attorney is a legal document that designates a person (the agent or attorney-in-fact) to make healthcare decisions on behalf of another person (the principal) in the event that the principal becomes incapacitated or unable to make their own healthcare decisions.
A healthcare power of attorney grants the agent the authority to make decisions related to the principal’s medical treatment, such as:
Deciding whether to withhold or withdraw life-sustaining treatment
Choosing healthcare providers and facilities
Approving or denying medical tests or procedures
Deciding on the use of pain management
The agent is responsible for making healthcare decisions in accordance with the principal’s wishes, as expressed in the healthcare power of attorney document or in other advance directives for healthcare.
The healthcare power of attorney is an important estate planning document that can help ensure that a person’s healthcare wishes are respected and carried out in the event that they become incapacitated. It is important to choose an agent who understands the principal’s wishes and is capable of making difficult medical decisions. It is also important to review and update the healthcare power of attorney regularly to ensure that it reflects any changes in the principal’s circumstances or wishes.
Click here to go to RELEP’s Estate Planning webpage. -
Does Maryland have an Inheritance Tax?
Maryland’s collateral inheritance tax is a tax on the transfer of property or assets from a deceased person’s estate to non-lineal heirs or beneficiaries, such as cousins, nieces, nephews, or unrelated individuals. Maryland does not have an inheritance tax on direct lineal descendants (i.e., grandparents, parents, children, grandchildren, and siblings). Maryland does have a collateral inheritance tax on non-lineal descendants.
The collateral inheritance tax rates in Maryland vary depending on the value of the property or assets received which is usually assessed around 10% – 11.1111% depending on the specific circumstances of the matter. The tax is calculated based on the fair market value of the property at the time of the deceased person’s death, and is paid by the recipient of the property or assets.
It is important to note that there are certain exemptions and deductions that may apply to the collateral inheritance tax in Maryland, such as exemptions for property transferred to charitable organizations, or deductions for debts and expenses related to the transfer of the property.
It is recommended to consult with a qualified attorney or tax professional to understand the Maryland collateral inheritance tax and the options available for estate planning and asset distribution.
Click here to visit RELEP’s Estate Planning and Probate webpage. -
What is the Purpose of a Revocable Living Trust?
The purpose of a revocable living trust is to provide a flexible and effective means of managing and distributing a person’s assets and property during their lifetime and after their death. A revocable living trust is a legal document that allows a person (the grantor or settlor) to transfer their assets into a trust, which is managed by a trustee (who can be the grantor, another individual, or a professional trustee).
The primary benefits of a revocable living trust include:
1. Avoiding probate: A revocable living trust can help to avoid probate, which is the legal process of administering a person’s estate after their death. Assets held in a revocable living trust are not subject to probate, which can save time and money.
2. Providing for incapacity: A revocable living trust can provide for the management of a person’s assets and property in the event that they become incapacitated. The trustee can manage the trust assets on behalf of the grantor, which can help to avoid the need for a court-appointed guardian or conservator.
3. Flexibility: A revocable living trust is a flexible estate planning tool that can be customized to meet a person’s specific needs and circumstances. The grantor can make changes to the trust during their lifetime, including adding or removing assets and changing the beneficiaries.
4. Privacy: Unlike a will, which becomes a matter of public record when it is filed with the probate court, a revocable living trust can be kept private.
Overall, a revocable living trust is a useful estate planning tool that can provide a range of benefits for the grantor and their beneficiaries. It is recommended to work with a qualified estate planning attorney to create a revocable living trust that is tailored to your specific needs and circumstances.
Click here to visit RELEP’s Estate Planning webpage. -
What is a Personal Care Contract?
In Maryland, a personal care contract is a legal agreement between a future prospective Medicaid recipient and a caregiver, typically a family member, in which the caregiver agrees to provide certain services to the recipient in exchange for payment. The purpose of the personal care contract is to establish a formal arrangement for the caregiver to provide care services, and to document the compensation and responsibilities of the caregiver.
Under Medicaid rules, a personal care contract is an allowable expense if it is properly structured and the compensation paid to the caregiver is reasonable based on the local market rates for similar services. The contract must be in writing and include specific details about the services to be provided, the compensation to be paid, and the duration of the agreement.
A personal care contract can be an effective way to manage the cost of long-term care for Medicaid recipients who require assistance with activities of daily living, such as bathing, dressing, and grooming. However, it is important to follow the rules and guidelines established by Medicaid to ensure that the contract is recognized as a legitimate expense and does not result in a penalty or disqualification from Medicaid benefits.
It is recommended to consult with a qualified attorney or financial advisor to understand the specific requirements for personal care contracts under Maryland Medicaid rules.
Click here to visit RELEP’s Elder Law & Medicaid webpage. -
What is a Medicaid Asset Protection Trust?
A Medicaid Asset Protection Trust (MAPT) is a type of irrevocable trust that can help individuals protect their assets and qualify for Medicaid benefits to pay for long-term care costs.
To qualify for Medicaid benefits, a person must have limited income and assets. By placing assets into a MAPT, an individual can effectively remove those assets from their estate and potentially qualify for Medicaid benefits to pay for long-term care costs. The assets in the trust are managed by a trustee and can be used to pay for the individual’s care needs, while still protecting those assets from being depleted.
There are certain restrictions and requirements for setting up a MAPT, and the rules may vary by state. Generally, the trust must be set up and funded at least five years before the individual applies for Medicaid benefits, and the assets in the trust cannot be used for the individual’s personal benefit during that time. In addition, the individual must be willing to give up control of the assets placed in the trust, as the trustee will have discretion over how the assets are used.
While a MAPT can be an effective strategy for protecting assets and qualifying for Medicaid benefits, it is important to work with a qualified attorney to ensure that the trust is set up properly and complies with all applicable laws and regulations.
Click here to visit RELEP’s Elder Law and Medicaid webpage. -
What is the Child Caregiver Exception for Maryland Medicaid?
In Maryland, the child caregiver exception is an exemption from Medicaid’s “transfer of asset” rules that allows a Medicaid applicant to transfer their home to their adult child who has provided care to the applicant for a certain period of time. The purpose of this exception is to allow elderly or disabled individuals to transfer their home to their child without incurring a Medicaid penalty, provided that the child has lived in the home and provided care to the parent for at least two years prior to the parent’s admission to a nursing home or other long-term care facility.
Under the child caregiver exception, the Medicaid applicant can transfer their home to their adult child as long as the child has provided care to the parent that has allowed the parent to remain at home and avoid placement in a nursing home. The transfer must also be made as an outright gift, without any expectation of repayment or compensation.
It is important to note that the child caregiver exception is subject to certain limitations and requirements, and it is recommended to consult with a qualified attorney or financial advisor to understand the specific rules and guidelines for this exemption under Maryland Medicaid.
Click here to visit RELEP’s Elder Law and Medicaid webpage. -
What is Long-Term Care Medicaid?
Long-term care Medicaid is a joint federal and state program that provides medical and long-term care coverage for eligible low-income individuals who meet certain medical and financial criteria. The program is known as Medicaid in the United States, and it is administered by individual states.
Long-term care Medicaid is designed to help people who require long-term care services, such as nursing home care, home health care, and other types of care that are not covered by Medicare. Medicaid may also cover other types of medical services, such as doctor’s visits, hospital care, prescription drugs, and medical equipment.
To be eligible for long-term care Medicaid, an individual must meet certain income and asset requirements, as well as medical criteria that demonstrate a need for long-term care services. The exact eligibility requirements may vary by state, but in general, the program is intended for low-income individuals who require extensive long-term care services.
It is important to note that long-term care Medicaid is different from Medicare, which is a federal program that provides health insurance coverage for people who are 65 or older, or who have certain disabilities. While Medicare may cover some types of medical services, it does not typically cover long-term care services in the same way that Medicaid does.
Click here to visit RELEP’s Elder Law and Medicaid webpage.
