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§ 14-612. Prohibitions and restrictions on decanting power by trust instrument

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, § 14-612
§ 14-612. Prohibitions and restrictions on decanting power by trust instrument
Currentness
Prohibitions
(a) An authorized fiduciary may not exercise the decanting power to the extent that the first trust instrument expressly prohibits exercise of:
(1) The decanting power; or
(2) A power granted by State law to the fiduciary to distribute all or part of the trust to another trust or to modify the trust.
Restrictions
(b) Exercise of the decanting power is subject to any restriction in the first trust instrument that expressly applies to exercise of:
(1) The decanting power; or
(2) A power granted by State law to the fiduciary to distribute all or part of the trust to another trust or to modify the trust.
Language that does not prohibit the exercise of decanting power
(c) Exercise of the decanting power is not prohibited by:
(1) A general prohibition of the amendment or revocation of a first trust;
(2) A spendthrift clause; or
(3) A clause restraining the voluntary or involuntary transfer of a beneficiary's interest.
Power to modify trust or distribute principal no bar to exercise of decanting power
(d) Subject to subsections (a) and (b) of this section, an authorized fiduciary may exercise the decanting power even if the first trust instrument allows the authorized fiduciary or another person to modify the first trust instrument or to distribute part or all of the principal of the first trust to another trust.
Prohibitions or restrictions to appear in second trust document
(e) If a first trust instrument contains an express prohibition or restriction described in subsection (a) or (b) of this section, the same prohibition or restriction shall be included in any second trust instrument.

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, § 14-612, MD EST & TRST § 14-612
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