§ 14.5-508. Claims of creditors or assignees of settlors
West's Annotated Code of MarylandEstates and TrustsEffective: October 1, 2015
Effective: October 1, 2015
MD Code, Estates and Trusts, § 14.5-508
§ 14.5-508. Claims of creditors or assignees of settlors
(a) The following rules apply, whether or not the terms of a trust contain a spendthrift provision:
(4) With respect to a trust described in 42 U.S.C. § 1396p(d)(4)(A) or (C), the court may limit the award of the creditor of a settlor under items (1) and (2) of this subsection to the relief that is appropriate under the circumstances, considering among other factors determined appropriate by the court, the supplemental needs of the beneficiary; and
(b)(1) Whether or not the terms of a trust contain a spendthrift provision, if a proceeding other than for a small estate under Title 5, Subtitle 6 of this article is commenced to administer the estate of a deceased settlor as provided in Title 5 of this article, property of a trust that was revocable at the death of the settlor is not subject to, and the trustee and beneficiaries of that trust may not be held liable for, claims of the creditors of the settlor that are not properly presented in the estate proceeding within the time periods specified in § 8-103 of this article or that are disallowed and barred as provided in § 8-107 of this article.
(2)(i) If a proceeding as described under paragraph (1) of this subsection has not been commenced, the trustee of the trust of which the decedent was a settlor may publish a notice once a week for 3 successive weeks in a newspaper of general circulation in what would otherwise be the proper venue for an administrative or judicial probate for that decedent under § 5-103 of this article.
Notice to Creditors of a Settlor of a Revocable Trust
To all persons interested in the trust of ___________:
This is to give notice that __________________ died on or about __________. Before the decedent's death, the decedent created a revocable trust for which the undersigned, ___________________, whose address is __________________________________, is now a trustee.
To have a claim satisfied from the property of this trust, a person who has a claim against the decedent must present the claim on or before the date that is 6 months after the date of the first publication of this notice to the undersigned trustee at the address stated above. The claim must include the following information:
A verified written statement of the claim indicating its basis;
The name and address of the claimant;
If the claim is not yet due, the date on which it will become due;
If the claim is contingent, the nature of the contingency;
If the claim is secured, a description of the security; and
The specific amount claimed.
Any claim not presented to the trustee on or before that date or any extension provided by law is unenforceable.
______________________________
Trustee
Date of first publication: _____________________.
(3) The publication of a notice in accordance with paragraph (2) of this subsection shall afford the trust property, the trustee, and the beneficiaries of the trust those protections under § 8-103 of this article afforded to a decedent's estate, personal representative, and heirs and legatees against claims presented more than 6 months after the date of the first publication of the notice.
(6)(i) If a claim is presented to the trustee as provided in paragraph (4) of this subsection and the trustee disallows the claim wholly or in a stated amount, the claimant is forever barred to the extent of the disallowance unless the claimant files an action against the trustee or against any person to whom trust property has been distributed.
(c)(1) During the period the power of withdrawal may be exercised, the holder of a power of withdrawal shall be treated in the same manner as the settlor of a revocable trust to the extent of the property subject to that power.
Credits
Added by Acts 2014, c. 585, § 1, eff. Jan. 1, 2015. Amended by Acts 2015, c. 100, § 1, eff. Oct. 1, 2015.
MD Code, Estates and Trusts, § 14.5-508, MD EST & TRST § 14.5-508
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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