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§ 14-601. Definitions

West's Annotated Code of MarylandEstates and TrustsEffective: October 1, 2023

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 14. Trusts (Refs & Annos)
Subtitle 6. Maryland Trust Decanting Act (Refs & Annos)
Effective: October 1, 2023
MD Code, Estates and Trusts, § 14-601
§ 14-601. Definitions
Currentness
§ 14.5-103
(a) The definitions in § 14.5-103 of this article apply in this subtitle.
In general
(b) In this subtitle the following words have the meanings indicated.
Authorized fiduciary
(c)(1) “Authorized fiduciary” means a trustee or other fiduciary, other than a settlor, who has discretion to distribute or direct a trustee to distribute all or part of the principal of the first trust to a beneficiary.
(2) “Authorized fiduciary” includes:
(i) A special fiduciary appointed under § 14-606 of this subtitle; and
(ii) A special needs fiduciary, as defined in § 14-610 of this subtitle.
Charitable interest
(d) “Charitable interest” means an interest in a trust that:
(1) Is held by an identified charitable organization and makes the organization a qualified beneficiary;
(2) Benefits only charitable organizations and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary; or
(3) Is held solely for charitable purposes and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary.
Charitable organization
(e) “Charitable organization” means:
(1) A person, other than an individual, organized and operated exclusively for charitable purposes; or
(2) A government or governmental subdivision, agency, or instrumentality that holds funds exclusively for charitable purposes.
Court
(f) “Court” means the court in this State having jurisdiction in matters relating to trusts.
Current beneficiary
(g)(1) “Current beneficiary” means a beneficiary that, on the date the beneficiary's qualification is determined, is a distributee or permissible distributee of trust income or principal.
(2) “Current beneficiary” includes a person who is a beneficiary solely because the person holds a presently exercisable general power of appointment.
(3) “Current beneficiary” does not include a person who is a beneficiary only because the person holds a power of appointment other than a presently exercisable general power of appointment.
Decanting power
(h) “Decanting power” means the power of an authorized fiduciary to distribute property of a first trust to one or more second trusts or to modify the terms of a first trust.
Expanded distributive discretion
(i) “Expanded distributive discretion” means a discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.
First trust
(j) “First trust” means a trust over which an authorized fiduciary may exercise decanting power.
First trust instrument
(k) “First trust instrument” means the trust instrument of a first trust.
Powerholder
(l) “Powerholder” means a person in which a settlor creates a power of appointment.
Presently exercisable power of appointment
(m)(1) “Presently exercisable power of appointment” means a power of appointment exercisable by the powerholder at the relevant time.
(2) “Presently exercisable power of appointment” includes a power of appointment exercisable only after the occurrence of a specified event, the satisfaction of an ascertainable standard, or the passage of a specified time only after:
(i) The occurrence of the specified event;
(ii) The satisfaction of the ascertainable standard; or
(iii) The passage of the specified time.
(3) “Presently exercisable power of appointment” does not include a power exercisable only at the powerholder's death.
Reasonably definite standard
(n) “Reasonably definite standard” means a clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of 26 U.S.C. § 674(b)(5)(A) and any applicable regulations.
Record
(o) “Record” means information that is:
(1) Inscribed on a tangible medium; or
(2)(i) Stored in an electronic or other medium; and
(ii) Retrievable in perceivable form.
Second trust
(p) “Second trust” means:
(1) A first trust which has been modified under this title; or
(2) A trust to which a distribution of property from a first trust has or may be made under this title.
Second trust instrument
(q) “Second trust instrument” means the trust instrument of a second trust.

Credits

Added by Acts 2023, c. 715, § 1, eff. Oct. 1, 2023; Acts 2023, c. 716, § 1, eff. Oct. 1, 2023.
MD Code, Estates and Trusts, § 14-601, MD EST & TRST § 14-601
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document