What is a Payable on Death Account?

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What is a Payable on Death Account?

A payable on death account, also known as a poor man’s trust,  is an account in which you are in total control. You will be able to control your money and determine who will be titled the beneficiary of the account. In the event of your death, the asset of the account will be passed directly to the beneficiary and will not go through your probate estate. To set this up you have to properly notify your bank, CD or account holder that you want to have a designated beneficiary.

Benefits of Payable on Death Account

As long as you are alive, in a payable on death account the person you named as a beneficiary has no rights to the account. You will have full access to your money. You can spend it, keep it, or change your beneficiary at any time. The only time it becomes permanent is upon your death and the beneficiary receives the money.

Cautions of Payable on Death Account

Keep in mind, you can not shortchange creditors or your family with a payable on death account. Avoiding probate does not avoid your legal obligations. In the event that you don’t leave enough assets to pay your debts, taxes, or to support your spouse and minor children, a payable on death account may be subject to the claims of creditors or your family.

At Davis, Upton & Palumbo LLC, our Mission is to Exceed Your Expectations in all that we do. Our firm is organized into specific legal Practice Groups to allow our individual attorneys and staff to develop extensive experience in selected areas of the law. If you’d like to learn more about our practice areas click here or contact us today.

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What is a Statute of Limitations?

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What is a Statute of Limitations?

The statute of limitations is a law which sets forth the time period in which a lawsuit must be commenced. The limitations period begins to run when a cause of action is said to accrue. Meaning that the aggrieved party becomes aware of the facts that have given rise to that cause of action.

What happens after the Statute of Limitations runs out?

If a party fails to commence a lawsuit within the limitations period, that party will be prohibited from bringing a lawsuit based on those facts. In that instance, we say that the party is time barred from bringing a lawsuit. In Maryland, the default limitations period is three years. This is found in within Maryland Courts and Judicial Proceedings Section 1-501. Although, there may be different limitations periods based on the type of lawsuit at issue. For example, an action on a note has a 6-year statutory period.

In Conclusion,  at Davis, Upton & Palumbo LLC, our Attorneys and Staff strive to exceed expectations for every client, in every case, every day. As a general practice law firm, we have the resources and capabilities to handle a wide variety of legal matters. To learn more about our Practice Areas,  click here or contact us today.

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What Are Three Common Ways Title Can Be Held In Maryland?

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Understanding the common ways that title can be held is important to understanding the rights of the owners of any shares in a property. We will cover three common types today.

Tenants in Common

One way that title can be held is as Tenants in Common. With tenancy in common the tenants own individual interest or shares to the property. In this case, if one tenant passes away their shares will automatically be passed on to his/her heirs.

Joint Tenants

The second way to hold title in Maryland is by Joint Tenants. Unlike the Tenants in Common, there is a right of survivorship. This means that if one of the tenants were to pass away the deceased tenants share would be passed on to the surviving tenant. There are four requirements that must be met in order for a valid joint tenancy to be formed.

  • TIME:  Both tenants must have acquired the interest of the property at the same time.
  • TITLE: The tenants must have acquired title through the same instrument which is typically a deed.
  • INTEREST: The tenants must have equal interest to the property.
  • POSSESSION: Both tenants must have equal rights to possess the property.
Tenants by Entirety

The third way title can be held in Maryland is Tenants by Entirety. This type of title is only for married couples. Similar to joint tenancy there is a right of survivorship, however, the parties cannot convey or petition the property without the consent of the other. If a couple is ever to get divorced the tenancy by entirety will terminate and convert to a tenancy in common.

In conclusion, at Davis, Upton & Palumbo LLC, our attorneys and staff know Real Estate. We also represent many individual property owners when real estate issues arise. To learn more about our Real Estate services click here or contact us today.

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How do Policy Limits on Auto Insurance Work?

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Insurance Policy

When we handle personal injury cases we have the opportunity to review insurance policies for our clients. Sometimes our clients wonder if they have the right coverage. To better understand if you have the coverage you need, it is important to understand policy limits.

What is a Policy Limit?

A policy limit is what your insurance company will sell to you. For example, in the State of Maryland, the minimum amount is 30,000 dollars per person and 60,000 dollars per accident. That means if you have this policy limit, the insurance company will only pay 30,000 per person and will not pay more then 60,000 dollars no matter how many people were injured during the accident.

What should my policy cover?

We recommend speaking with your insurance agency to make sure you have a policy limit that will protect you. You should have your policy limits set so that your insurance will protect the assets you have in your home.  You do not want to become personally liable if you are ever the cause of an accident.

For example, Mark personally has a $250,000 policy with a million dollar umbrella. This will vary depending on your personal circumstances. We recommend discussing these details with your insurance agent to determine what policy limits are appropriate for you.

At Davis, Upton & Palumbo LLC, our attorneys and staff will handle all communication with the insurance company. We will negotiate your best settlement with the insurance companies and will vigorously litigate those claims, which cannot be reasonably settled. If you want to learn more about or Personal Injury services click here or contact us today!
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What is Real Property?

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What is Real Property?

Real Property refers to bare or unimproved land or land with immovable structures attached to it and/or man-made improvements located on the property, such as a house, garage, barn, pool, fence, dam, road, etc. When someone purchases real property, that purchaser usually receives a mortgage from a bank or lender. In that case, the purchaser also signs a Deed of Trust which is recorded in the land records. The Deed of Trust secures the mortgage by designating the real property as collateral for the bank or lender in case of default. The bank or lender has the right to foreclose on the real property if the purchaser does not make the mortgage payments in a timely manner.

Real Property vs. Personal Property

The concept of Real Property is distinct from Personal Property in that Personal Property can be categorized as a movable object, such as a car, a boat, a trailer, or a household item. Personal Property may be repossessed (as opposed to foreclosed) if a bank or lender has filed a financing statement certifying and describing its lien, and the purchaser has failed to make the required payments.

In conclusion, at Davis, Upton & Palumbo LLC, we represent many individual property owners when real estate issues arise. Our Real Estate Practice Group has developed the reputation of being the “People To Talk To” when a real estate issue arises. To learn more about our Real Estate services click here or contact us today.

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