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§ 14.5-402. Intent and capacity of settlor to create a trust

West's Annotated Code of MarylandEstates and TrustsEffective: January 1, 2015

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 14.5. Maryland Trust Act (Refs & Annos)
Subtitle 4. Creation, Validity, Modification, and Termination of Trust (Refs & Annos)
Effective: January 1, 2015
MD Code, Estates and Trusts, § 14.5-402
§ 14.5-402. Intent and capacity of settlor to create a trust
In general
(a) A trust is created only if:
(1) The settlor has capacity to create a trust;
(2) The settlor indicates an intention to create the trust;
(3) The trust has a definite beneficiary or is:
(i) A charitable trust;
(ii) A trust for the care of an animal, as provided in § 14.5-407 of this subtitle; or
(iii) A trust for a noncharitable purpose, as provided in § 14.5-408 of this subtitle; and
(4) The trustee has duties to perform.
Definite beneficiaries
(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
Selection of beneficiary from indefinite class
(c)(1) A power in a trustee or in another person under the terms of the trust to select a beneficiary from an indefinite class is valid.
(2) If the power described in paragraph (1) of this subsection is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons that would have taken the property had the power not been conferred.

Credits

Added by Acts 2014, c. 585, § 1, eff. Jan. 1, 2015.
MD Code, Estates and Trusts, § 14.5-402, MD EST & TRST § 14.5-402
Current through legislation effective July 1, 2020, from the 2020 Regular Session of the General Assembly.
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