October 31, 2014

Maryland State Asset Protection Laws

Maryland Asset Protection Summary 

Homestead Exemption

There is no statutory Homestead exemption offered in Maryland.  However, depending on your asset protection plan and the way your homestead is owned, i.e., tenants by the entirety,  it may still be afforded SOME protection.  Check with your APS rated advisor to determine whether or not you have taken the proper steps to protect your homestead.  However, there is some stautory protection offered, there is an exemption for property of any kind up to $6,000 with some limitations.  To see this statute, please click here.

Life Insurance and Annuities

The proceeds of a policy of life insurance are exempt if created for the benefit of a spouse, child, or dependent relative of the insured.  For purposes of this statute, “proceeds” includes death benefits, cash surrender and loan values, premiums waived, and dividends.  To see this statute, please click here and click here.

The proceeds under an annuity contract on the life of the insured, if created for the benefit of a spouse, child, or dependent relative of the insured are exempt.  For purposes of this statute, “proceeds” includes death benefits, cash surrender and loan values, premiums waived, and dividends.  To see this statute, please click here.

IRA

IRAs and ERISA qualified plans are exempt.  To see this statute, please click here.

Disability

“Disability income benefits are not exempt if the judgment is for necessities contracted for after the disability is incurred.”  M.G.A. §11-504(b)(2)  To see this statute, please click here.

Corporate Protections

Charging Order

Under Maryland’s Revised Uniform Partnership Act, a judgment creditor’s exclusive remedy is a charging order.  To view this section of the statute, click here.

Under Maryland’s Limited Liability Company Act, a judgment creditor may charge a member’s interest in the LLC with payment of the unsatisfied amount of the judgment with interest.  The judgment creditor receives only the rights of an assignee of the member’s interest in the LLC.  To view this section of the statute, click here.

Business Acts

1.      Maryland Corporations Act

a.      To view, this statute please, click here.

2.      Maryland Limited Liability Company Act

a.      To view, this statute please, click here.

3.      Maryland Revised Uniform Partnership Act  of 2001.

a.      To view, this statute please, click here.

The Asset Protection Society makes every attempt to keep the material on its web-pages up to date and accurate. Having said that, The APS does not warrant the material on this site and you should ALWAYS seek out the advice of a local advisor in your state who can give you individual advice for your particular situation and confirm the status of your state laws.