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§ 14.5-410. Termination of noncharitable irrevocable trusts

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, § 14.5-410
§ 14.5-410. Termination of noncharitable irrevocable trusts
In general
(a)(1) A noncharitable irrevocable trust may be terminated on consent of the trustee and all beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.
(2) A noncharitable irrevocable trust may be modified on consent of the trustee and all beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
Spendthrift provisions or similar protective language
(b) The existence of a spendthrift provision or similar protective language in the terms of the trust does not prevent a termination of a trust under subsection (a)(1) of this section.
Distribution of trust property
(c) On termination of a trust under subsection (a)(1) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.
Court approval of modification or termination of trust
(d) If not all beneficiaries consent to a proposed modification or termination of the trust under subsection (a) of this section, the modification or termination may be approved by the court if the court is satisfied that:
(1) If all beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) The interests of a beneficiary that does not consent will be adequately protected.

Credits

Added by Acts 2014, c. 585, § 1, eff. Jan. 1, 2015.
MD Code, Estates and Trusts, § 14.5-410, MD EST & TRST § 14.5-410
Current through legislation effective July 1, 2020, from the 2020 Regular Session of the General Assembly.
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