Rule 10-304.2, a new Maryland court rule regarding Specific Transactions took effect on July 1, 2026. Maryland law includes a classification called a Specific Transaction for financial transactions that may be necessary for a minor or person with a disability, but who do not have ongoing financial issues that require a full Guardianship of Property. An example would be that an individual with a disability has inherited a piece of property, and the property cannot be sold without someone signing the contract and deed on their behalf. Circuit Courts can also approve smaller “pieces” that are required to complete a whole “transaction.” If the goal of the Specific Transaction is enroll an individual with a disability in Medical Assistance, the Specific Transaction steps requested can include authorization to access the financial records required to complete the Medical Assistance application, authorization to spend down income or resources in order to meet benefit eligibility requirements, and/or authorization to establish future burial arrangements as part of the spend down.
The Specific Transaction classification has been in existence for years, but the new rule details a more formal structure for the Specific Transaction process. The procedure required follows the current Guardianship Petition framework: after a motion for Specific Transaction is filed, the Circuit Court will issue a Show Cause Order and schedule a hearing. If the Circuit Court finds at the hearing, among other considerations, that the transaction requested meets the demonstrated needs of the minor or person with a disability, the Circuit Court will enter an Order authorizing the specific transaction, naming the individual empowered to act and listing the steps they are authorized to take to complete the transaction. Circuit Courts also have the authority to change a motion for Specific Transaction to a petition for Guardianship if more appropriate, or vice versa.
This development should save significant time and money for those who are handling straightforward financial issues on behalf of minors or people with a disability. If you would like to learn more about this new Rule, please contact HWK to discuss.
Written by Brad Fowler, Esq.
