Maryland elder law attorneys have until November 19, 2026, to comment on proposed changes addressing advance attorney fees and Medicaid eligibility. The proposals are included in the 229th Report of the Standing Committee on Rules of Practice and Procedure.
Opportunity to Comment
The Rules Committee voted to transmit two alternative proposals to the Supreme Court of Maryland without recommending either version. Written comments may be submitted to rules@mdcourts.gov by Thursday, November 19, 2026. The Court is expected to consider the proposals at a subsequent open Rules meeting; a meeting date has not yet been announced.
Why This Matters for Medicaid Planning
Maryland’s attorney trust-account rules generally require advance legal fees to remain in trust until earned. In Medicaid matters, money held in an attorney’s trust account may continue to be attributed to the client for eligibility purposes, even though the funds have been committed to paying for legal representation. This can make it harder for applicants to obtain assistance when they need it.
May-Lis Manley’s Testimony
At the June 25, 2026 Rules Committee meeting, May-Lis Manley, Chair of the MSBA Elder Law and Disability Rights Section, explained how the current requirements affect Medicaid clients. She testified that funds held in escrow can remain within a client’s possession and control for eligibility purposes and described having to turn away Medicaid cases. She urged a limited exception with safeguards to protect clients, expressed a preference for Version A, and stated that either proposal would be an improvement.
Two Proposed Solutions
Version A: Targeted Eligibility Exception
Version A would permit a qualifying advance flat fee in a civil matter to become the attorney’s property upon receipt when keeping the money in trust would interfere with eligibility for a financially restricted benefit or program for which the legal services are sought, or with relief under federal law. This limitation appears directly in the proposed rule.
Version B: Broader Client-Best-Interest Standard
Version B would permit this treatment when the advance flat-fee arrangement is in the client’s best interest. Its accompanying Comment identifies interference with financially restricted benefits or federal-law relief as circumstances satisfying that standard.
The distinction: Version A states the specific eligibility-related exception in the rule itself; Version B uses a broader best-interest standard, with the Medicaid-related circumstances explained in a Comment. Both alternatives require written agreements and disclosures and preserve client protections concerning termination and possible refunds.
What the Rules Committee Decided
On June 25, the Rules Committee voted 11–6, with one abstention, to send both alternatives to the Supreme Court without a recommendation. Neither has been adopted, and the existing requirements remain in effect.
How Members Can Participate
Written comment deadline: November 19, 2026. Submit comments by email to rules@mdcourts.gov. Practical examples of how advance fees held in trust affect Medicaid eligibility, access to representation, and client protections may help inform the Court’s consideration.
Members will have a second opportunity to participate when the Supreme Court holds its open Rules meeting. The Chapter will share the meeting information when it becomes available.
Maryland Judiciary — Rules Committee Reports and Rules Changes