Chisholm Law Group, LLC

How to make sure your pet never loses their home

2026-06-25T16:39:33Z

For many pet owners, a beloved animal is more than a companion. Your pet may have been by your side through major life events, offered comfort during difficult times and provided a constant source of stability. Because of that bond, you may find yourself asking an uncomfortable question: What would happen to your pet if you were no longer there to care for them?

Why good intentions may not be enough

One of the most common mistakes pet owners make is relying on informal promises. A relative may agree today to care for a dog or cat, but years later their situation could look very different. Maryland estate planning tools can help create a more reliable plan. A pet trust, for example, allows you to leave instructions for your pet's care while setting aside funds to support those instructions.

What can you include in a pet trust?

Depending on your pet's needs, a trust can outline everything from daily care preferences to long-term medical treatment. Maryland law also allows pet owners to build in safeguards that help ensure those instructions are followed. A pet trust may address matters such as:

Funds for food, grooming, veterinary care and emergency medical treatment
Instructions regarding medications or ongoing health conditions
Preferences for diet, exercise and daily routines
The appointment of a backup caregiver if the primary caregiver becomes unable to serve
Guidance regarding boarding, travel or socialization needs
The designation of an independent third party to oversee your pet's care and help enforce the terms of the trust if concerns arise
End-of-life care preferences and instructions for final arrangements

Including these details can help maintain consistency in your pet's life and provide clear direction for the people responsible for their care. For example, Maryland law allows you to appoint an independent third party whose role is to monitor the pet's well-being and help ensure that caregivers and trustees follow the terms of the trust. The more specific your instructions, the easier it may be for others to understand and carry out your wishes. A thoughtfully drafted pet trust can do more than provide financial support. It can create a plan for your pet's daily life while also providing oversight and accountability for the people entrusted with their care.

Planning for the bond that continues

Estate planning often focuses on protecting spouses, children and financial assets. Yet for many families, pets occupy an equally important place in daily life. A well-designed plan can help ensure that important decisions about your pet's care do not fall to others without guidance. An experienced Maryland estate planning attorney can help you explore the available options and create a plan that reflects both your wishes and your pet's unique needs.

Planning for pets in Maryland: Simple steps to protect their care

2026-01-27T15:13:52Z

For many people in Maryland, pets are family. They offer comfort, routine and unconditional love. Yet one difficult question often goes unasked: what happens to your pet if you pass away or can no longer care for them? Planning can bring peace of mind. A pet trust is a reliable way to ensure your pet stays safe, loved and cared for in the future.

How pet trusts work in Maryland

Maryland law allows people to create pet trusts that the courts will back up. MD Code, Estates and Trusts, § 14.5-407 governs this. You can set aside money and provide clear instructions for your pet's daily life. In Maryland, a pet trust usually involves three specific human roles to protect the animal:

The trustee: This person manages the money and pays the bills.
The caregiver: This person provides the pet's daily food, shelter and love.
The enforcer: This person checks in to make sure the trustee and caregiver are doing their jobs correctly.

While your pet is the reason for the trust, the law technically views them as the object of the trust rather than a beneficiary. You can include details such as feeding routines, vet preferences, medication needs and grooming. Just keep in mind that a Maryland court can reduce the trust's funds if it believes the amount is far more than the pet actually needs to live comfortably.

Choosing the right caregiver for your pet

Choosing a caregiver takes more than just finding someone who likes animals. It requires honesty. Ask potential caregivers about their lifestyle, housing rules and long-term plans. A friend who loves your dog today might move into a no-pets apartment next year. For example, you can name a close friend as your dog's caregiver and list them as a backup person just in case. This small step can prevent confusion and keep your pet out of a shelter.

A lasting gift

Speaking with a lawyer can help you understand Maryland's specific rules. A short conversation can ensure your pet receives care, stability and love even when you aren't there to provide it.

Global mobility and estate planning: What jet-setting families need to know

2025-10-31T16:08:30Z

It is not uncommon for families to travel and even work in multiple countries. While this lifestyle offers exciting opportunities, it also presents unique challenges, particularly when it comes to estate planning. Internationally mobile families are wise to gain a basic understanding of how tax residency issues, multi-jurisdictional wills and foreign property ownership impact estate planning to help better ensure they continue to preserve and build their wealth.

#1: Tax residency issues

Each country has its own criteria for determining tax residency, which can affect income tax obligations and estate taxes. As such, it is a good idea to determine the tax residency status in each country where you live or own property. In some cases, you could face double taxation. It is important to review tax treaties and other legal tools to see if you can mitigate this risk. It is best to address these tax residency issues to better manage tax liabilities while complying with international tax laws.

#2: Multi-jurisdictional wills

A will is only helpful if it is valid. Each location likely has its own rules, so it is helpful to draft a will that applies across jurisdictions. Check to make sure your will complies with local laws and includes clear instructions for the distribution of assets. It is also wise to regularly update the will to reflect changes in family circumstances or international laws.

#3: Foreign property ownership

Owning property in multiple countries adds another layer of complexity to estate planning. Each country has its own rules regarding property ownership, transfer, and taxation. Families should:

Understand the legal requirements for owning and transferring property in each jurisdiction
Consider the impact of foreign property on overall estate tax obligations
Explore options for structuring property ownership to minimize tax liabilities

Proper management of foreign property ownership can help families protect their assets and optimize their estate planning strategies.

Estate planning for globally mobile families requires careful consideration of various legal and tax issues. By understanding tax residency, creating multi-jurisdictional wills and managing foreign property ownership families can work through the complexities of international estate planning. With the right strategies, jet-setting families can better ensure their assets are protected and their wishes are honored, no matter where life takes them.

Employment Tax Obligations of Single Member LLCs

2025-05-07T13:42:18Z

Most Single Member LLCs either elect or are by default classified as disregarded entities for Federal income tax purposes. Recent Treasury Regulations change this result for Federal employment tax purposes. Treas. Reg. Section 301.7701-2(c); TD 9356, 207-39 I.R.B. 675. Effective January 1, 2009, limited liability companies that are disregarded for all other purposes will be treated as corporations for Federal employment tax purposes. Id. Generally, characterization of an otherwise disregarded entity as a corporation for Federal employment tax purposes is positive for taxpayers. Instead of having personal liability for unpaid employment taxes, the owner of the LLC will only be liable for payroll taxes attributable to employees of the LLC if the requirements of Code Section 6672 are satisfied for imposition of the 100% Trust Fund Recovery Penalty. See IRC Section 6672; In re Macagone, 253 B.R. 99 (M.D. FL 2000); Thomsen v. United States, 887 F.2d 12 (1st Cir. 1989). Even assuming that in most circumstances the owner of a single member LLC will be fully liable as a result of imposition of the 100% penalty for the trust fund (employee) portion of the withholding tax, liability for the employer portion would be rare and require a determination that it is appropriate to ?pierce the corporate veil.? See Stramaglia v. U.S., 2007 WL 4404185 (E.D. Mich. 2007). This does, however, create some importance to applying entity formalities so as to create some separation between the LLC and its owner by giving a separate identity to the limited liability company. SeeBart Arconti & Sons, Inc. v. Ames-Ennis, Inc., 275 Md. 295, 309-310 (1974). The new regulations are a rather dramatic change of position for the government from the position taken in cases such as Acme v. Department of Treasury, 488 F.3d 100 (2nd Cir. 2007). In Acme, the government maintained and the Second Circuit agreed that the owner of a single member LLC otherwise disregarded for tax purposes was personally liable for the limited liability company?s employment tax deficiencies. Id. at 104-105. While generally positive for owners of single member LLCs, the new Regulations are not without their difficulties. First, some states (such as Minnesota and Wisconsin) require that state unemployment taxes and in some cases employer income taxes be assessed against the owner of a single member LLC and not the entity. See e.g., Minn. Stat. § 268.063; Wis. Stat. Ann. § 108.22(9).California allows single member LLCs to elect whether to be disregarded for state income tax purposes or treated as corporations. Cal. Rev. & Tax. Code § 23038(b)(2)(B)(i). However, the California State Franchise Tax Board may require employment taxes to be assessed against the owner regardless of the election. Cal. Unemp. Ins. Code §§ 1731?1736. Statutes in North Carolina permit similar discretion by the state tax authorities. N.C. Gen. Stat. Ann. § 96-10(d). Second, the new Regulations create administrative problems for single member LLCs classified as disregarded entities. Rather than being treated uniformly for all taxes, the new Regulations require that a single member LLC be treated as a disregarded entity for all taxes except Federal employment taxes. Treas. Reg. Section 301.701-2(c). Finally, in states which continue to view the owner as liable for state unemployment and withholding taxes, employment tax filings for state and Federal purposes will be inconsistent. In those states which permit election, there may be advantages to treating an LLC as the employer for state payroll taxes as well as Federal taxes. New employers often have an unemployment tax rate lower than the unemployment tax rate for established businesses with histories of layoffs (particularly in changing economic times). See e.g., Va. Code Ann. § 60.2-530. So long as the newly formed LLC can avoid state laws enacting the SUTA Dumping Prevention Act of 2004, the ability to treat the LLC as the employer may allow more favorable rates of withholding for state unemployment tax purposes. 42 U.S.C. §503(k)(l)(A). The SUTA Dumping Prevention Act of 2004 prohibits the Secretary of Labor from certifying grants to a state if the state has not enacted laws prohibiting businesses from forming new successor entities solely for the purpose of clearing prior negative unemployment experience. Under the requirements of the Act, if a business has the same or substantially common ownership, management, or control, the unemployment experience of the old entity is transferred to the new entity. 42 U.S.C. §503(k)(l)(A). [nap_names id="FIRM-NAME-1"], represents taxpayers in a variety of tax controversy matters including unpaid withholding taxes. If you have questions regarding the new Treasury Regulations under IRC §7701 or wish to discuss some of the issues created by those Regulations as they relate to your clients, please feel free to contact me at any time.

Considerations in Relying on CLN as an Alternative to the OVDP and SFOP

2025-05-07T13:33:58Z

Introduction

For most U.S. citizens residing outside the United States who have not been totally tax compliant, the Offshore Voluntary Disclosure Program (OVDP) and Streamlined Filing Offshore Procedure (SFOP) offer opportunities to address a broad range of past noncompliance. The OVDP and SFOP were initiated by the Internal Revenue Service to process large numbers of somewhat similarly situated taxpayers. The stated objective of these programs is to ‘‘bring taxpayers that have used undisclosed foreign accounts and assets, including those held through undisclosed foreign entities, to avoid or evade tax into compliance with United States tax and related laws.’’ Even taxpayers who have failed to file U.S. income tax returns are eligible to participate in either program. Taxpayers who are reasonably confident that their non-compliance was non-willful will in most cases take advantage of the SFOP by filing U.S. income tax and information returns for the three most recent years and foreign bank account reporting forms (FBARs) for the six most recent years under Form 14653, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. Nonresident taxpayers who successfully take advantage of the SFOP escape penalties and are solely liable for taxes and interest on the unreported income. In contrast, taxpayers participating in the OVDP are required to file U.S. income tax returns, information returns, and foreign bank account reports for the eight most recent years and pay taxes, interest, a variety of tax-based penalties, and, most significantly, an offshore penalty of 27.5% or 50% of the high value of foreign assets and accounts during the eight-year OVDP period. Not all U.S. persons residing outside the United States find the OVDP or SFOP desirable options to address past non-compliance. The offshore penalty regime under the OVDP is often severe.

FATCA: How to Achieve a Practical Understanding Without Getting Lost in the Weeds.

2025-05-07T13:32:03Z

FATCA is a compliance program. It turns payors of U.S. source income into withholding agents. If a withholding agent receives written certification from a business in Canada that satisfies FATCA requirements no withholding occurs. If that certification is not forthcoming 30% of the amount due to the Canadian entity will be withheld. Why? U.S. citizens and residents are subject to U.S. income taxation on worldwide income regardless of the source from which it is derived. In order to avoid U.S. taxation, some U.S. citizens and residents invest outside the United States. FATCA is after those taxpayers. To find out about them and the income they receive FATCA turns the foreign financial institutions (“FFIs”) at which they bank and invest into withholding agents, as well. Generally, FATCA withholding applies to any type of U.S. source income which is not effectively connected with the conduct of a U.S. trade or business. A variety of “nonfinancial payments” are excluded from withholding. These include

Wages and salaries,
Non-cash employee compensation including stock options,
Property rents,
Payments under office equipment leases,
Payments under software licenses,
Payments for transportation services,
Payments for shipping,
Awards, prizes, and scholarships, and
Proceeds from sale of property producing any of the kinds of income described above.

FATCA affects individuals but it does not apply to them. That is, individuals are not subject to any of the compliance obligations FATCA imposes. Instead, FATCA applies to entities, any kind of entity: corporations, partnerships, ULCs, even trusts. The entities that are characterized as FFIs are required to identify their depositors and investors who are “specified U.S. persons” and report information about the U.S. persons and payments made to them to CRA. CRA will, in turn, deliver the information it receives to the Internal Revenue Service. Nonfinancial foreign entities (“NFFEs”) are subject to little or no compliance, but all NFFEs must nevertheless certify their FATCA status to avoid withholding on U.S. source income. “Passive NFFEs” will also have to disclose the identity of any “substantial U.S. persons” who own equity or debt interests in the NFFE. Active NFFEs are not required to make any disclosures regarding their owners. The distinction between active NFFEs and passive NFFEs is based upon the character of the NFFE’s income. As long as at least half of the entity’s income is from the conduct of an active trade or business, the entity will not be characterized as a passive NFFE. Whether a payor of U.S. source income will be required by FATCA to withhold on the payment depends upon the FATCA status of the payee. Canadian entities that receive U.S. source income will have to certify their FATCA status by providing the U.S. payor with a Form W-8BEN-E. A copy of this form is attached. The Canadian entity will have to choose one of 27 boxes to identify its FATCA status and verify its compliance with the requirements for the status it has claimed.