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§ 2-116. Passive trusts

West's Annotated Code of MarylandReal PropertyEffective: October 1, 2007

West's Annotated Code of Maryland
Real Property (Refs & Annos)
Title 2. Rules of Construction (Refs & Annos)
Effective: October 1, 2007
MD Code, Real Property, § 2-116
§ 2-116. Passive trusts
Trustees with nominal duties
(a) If a grant, deed, covenant, or bequest of any land or personal property is to a trustee whose title is nominal only and who has no express power of disposition or management of the property, and is to be held for a beneficiary expressly designated in it, the grant, deed, covenant, or bequest is void as to the trustee, and is a direct grant, deed, covenant, or bequest to the beneficiary.
Trustees whose duties become nominal
(b) If a trust is created by grant, deed, covenant, or bequest of any land or personal property in which the trustee has duties other than nominal to perform at the inception of or during the term of the trust, but later because of the death of a life tenant or other occurrence the trust terminates or there remains only nominal duties to perform, the legal estate in the corpus of the trust then vests in the beneficiaries of the trust, even though the instrument creating the trust specifically requires a grant of the legal estate, unless the trustee is required to make partition or division by the terms of the creating instrument.
Deeds of trust given as security
(c) This section is not applicable to any deed of trust given as security for the payment of a debt or the performance of an obligation.
Executory interests and powers of appointment
(d) Notwithstanding the repeal of the British Statute of Uses, executory interests and powers of appointment are valid in the State, subject to the rule against perpetuities as modified by §§ 11-102 and 11-102.1 of the Estates and Trusts Article.

Credits

Added by Acts 1974, c. 12, § 2, eff. July 1, 1974. Amended by Acts 2007, c. 381, § 1, eff. Oct. 1, 2007.
Formerly Art. 21, § 5-116.
MD Code, Real Property, § 2-116, MD REAL PROP § 2-116
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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