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In the January issue of the McMillan Metro Alert, we advised our clients that the State of Maryland had carved out a limited exemption from the 10% inheritance tax for the devise of an interest in a principal residence jointly owned by domestic partners to the surviving partner along with the requirements for qualifying for the exemption. Because of this change in the law, domestic partners may want

Via recent legislation, and in an effort to raise revenues, the District of Columbia is offering tax amnesty for submissions made between August 2 and September 30, 2010. All civil penalties and collection fees will be waived upon payment of overdue DC taxes and interest. For taxpayers who are behind with their D.C. taxes and seek to come back into compliance, this may be a worthwhile opportunity. Who

So often we hear that noncompete agreements are not worth the paper they are written on. Whether that statement is true or not depends on what is written on the paper. Earlier this year, the United States District Court of Maryland unequivocally confirmed that employee noncompete agreements are enforceable in Maryland! TEK-systems, Inc. v. Jonathan Bolton, (February 4, 2010). In fact,

The gift tax annual exclusion allows an individual to gift $13,000.00 (as indexed for 2010) to an unlimited number of donees each year without paying gift tax. In order to qualify for the annual exclusion, however, a gift must be of a “present interest” in accordance with IRC 2503(b). To qualify as a present interest in property, the recipient needs to have an unrestricted right to the immediate

The concept of tenants by the entirety, available only to a husband and wife, is considered by many to be unique to real property. The Maryland Legislature has enacted a law which extends the immunity of all types of property held as tenants by the entirety (“T/E”) from the claims of a spouse’s separate creditors. The statute extends the immunity of T/E to any property, real or personal, which

For those interested in Homeowners Associations and Condominium projects, the Maryland General Assembly passed several new laws in 2010 that will affect the drafting of new governing documents for these types of projects to include how administration, management and maintenance requirements are addressed by the developer while in control of the project and, thereafter, by the homeowners and management

Earlier this year, the Maryland Attorney General (“AG”) issued a long awaited opinion regarding the treatment in Maryland of same sex marriages validly created in other jurisdictions. While the AG’s opinion did not constitute a change in the laws of Maryland relating to the rights of same sex couples in Maryland to marry in the state, the opinion created quite a furor among the opponents of same

Earlier this Spring, the Maryland Court of Special Appeals ruled that a Maryland corporation whose charter has been revoked by the Maryland State Department of Assessments and Taxation (“SDAT”) is deemed a defunct entity and cannot file or maintain an action in the Maryland courts. In the case of Tri-County Unlimited, Inc. v. Kids First Swimming School, Inc. the Court held that the revival of the

Section 4A-301 of the Corporations and Associations Article provides that a member of a Limited Liability Company (LLC) is not “personally liable for the obligations of the LLC, whether arising in contract, tort or otherwise, solely by reason of being a member of the LLC.” In what may prove to be a landmark decision, the Maryland Court of Appeals has held that an individual member of an LLC that owns

Notice of a client’s or customer's bankruptcy filing can strike fear in the heart of the most experienced business person. Even after the initial shock has worn off, the same business person may be served with a frightening complaint in which the bankruptcy trustee is attempting to avoid a preferential transfer by the client, now a bankruptcy debtor. Luckily, the law of preferences, which allows

The “Hiring Incentives to Restore Employment Act of 2010” (the HIRE Act, P.L. 111-147) can provide a substantial benefit for private-sector employers (including employers that are non-governmental nonprofit organizations) who are beginning to expand their businesses through the hiring of new employees. To provide employers with an incentive to hire unemployed individuals, the HIRE Act provides a

There are a number of important changes for both employers and individuals included in the new 2010 Health Care Act (as amended by the Health Care Reconciliation Act) that are effective immediately. These changes confer a real benefit on small businesses as well as individuals with young adult children. Individuals with children who have not yet reached the age of 27 have been extended health

Under the federal estate tax rules as they existed prior to January 1, 2010, the basis of property, whether real or personal, acquired from a decedent by reason of his or her death, was its fair market value on the date of death (or 6 months later, if the later if the alternate valuation date for all assets in the estate was selected). This was called the “step-up” in basis of inherited assets. However,

The issue of whether an employer can reduce the rate of compensation to its employees who choose to work extended hours has been answered in the affirmative. In a case out of the 9th Circuit, the Court said that such actions were permissible by the employer as a strategy to control overtime expense so long as the overall compensation meets the wage requirements under the Fair Labor Standards Act

Because domestic partners in Maryland presently have no legally recognized relationship to one another, when one domestic partner dies, the devise of his or her estate to the other is subject to the Maryland inheritance tax at the rate of ten percent (10%). This is one of the greatest costs for which unmarried couples must plan, either by purchasing sufficient insurance or otherwise. The Maryland

The Maryland legislature has adopted a new statute intended to regulate the transition of control from developer to owners in homeowners' associations. This statute adds new Section 106.1 to the Homeowners Association Act, found in Section 11B of the Real Property Article of the Maryland Code (hereinafter the “Statute”). It will seem very familiar to developers and builders already conversant with

A client, who recently used an agreement that he found on the internet, called us for help. The agreement was used to hire a subcontractor for a $100,000 task to be performed over several months, yet payable at a daily rate of $1,500 per consultant. The agreement had a beginning and an end date. The subcontractor's work was far below standard and was not worth the daily rate. Our client wanted

Be careful of the thief who masquerades as your bookkeeper. The law is not as kind to employers as it once was. Recently, McMillan Metro, P.C. was called upon to represent two different employers for claims of employee theft, with one claim involving over $1M. What happens when someone inside your business forges your signature on a check to someone who does not exist – a fictitious payee –

Despite the economy remaining largely in the doldrums, there were a variety of benefits which should not be overlooked by taxpayers who are able to take advantage of them. Keying on those which would have the most likely application for the small, medium and large local businesses which comprise the majority of the Firm’s clientele, as well as the individuals behind them, this article seeks to highlight

All employees are subject to an array of implied common law duties arising from the unwritten contract requiring the employer to pay wages in exchange for the employee's performance. While the duty of loyalty provides protection for the employer as well as a powerful enforcement instrument, it is often overlooked and ignored. Too often employees today do not connect their responsibility to the employer

Under a new Maryland law that went into effect last month, contractors that rely upon minority-owned companies in bids for the award of state construction projects but which fail to use such companies will be subject to felony charges. The new law, which went into effect as of October 1, 2009, provides for a maximum sentence of five years in prison, a $20,000 fine, or both.

Given the effect of the economy, many companies find themselves struggling to make rent payments. Companies may want to consider discussing rent abatement, rent deferrals and/or other concessions with their Landlords. The types of relief that may be available to a Tenant will differ depending upon a number of circumstances and each Landlord may react differently to such requests depending upon the

Following on the heels of the current tax amnesty program in the State of Maryland, and in its own effort to raise revenues, the Commonwealth of Virginia will be offering tax amnesty under its recently announced “Get Square VA” campaign for submissions made between October 7, 2009 and December 5, 2009. All civil penalties and one-half of accrued interest will be waived. For taxpayers who are behind

Via recent legislation, and in an effort to raise revenues, the State of Maryland is offering tax amnesty for submissions made between September 1 and October 30, 2009. All civil penalties and one-half of accrued interest will be waived. For taxpayers who are behind with their Maryland taxes, this is a no-brainer. Who is an eligible taxpayer? Most taxpayers will be able to take

Beginning October 1, 2009, it will be against the law in Maryland to write or send a text message while operating a motor vehicle in the travel portion of the roadway (House Bill 72 and Senate Bill 98). A violation of this law is a misdemeanor and subjects the violator to a $500 fine. To date, Maryland has not joined the many states that have also outlawed talking on a cell phone while driving without