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§ 14-404. Creation of trust

West's Annotated Code of MarylandEstates and Trusts

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 14. Trusts (Refs & Annos)
Subtitle 4. Maryland Discretionary Trust Act (Refs & Annos)
MD Code, Estates and Trusts, § 14-404
§ 14-404. Creation of trust
Currentness
Creation of trust by transferring property
(a) A person may create a trust by transferring property in writing to another person if the document transfers property in a legally recognized manner and:
(1) Identifies the recipient of the property as the trustee;
(2) Identifies the beneficiary of the trust; and
(3) Identifies the property as being transferred under the Maryland Discretionary Trust Act.
Creation of trust by written declaration
(b) A person may create a trust by written declaration if the written declaration is executed in a legally recognized manner and:
(1) Identifies the property to be held in trust;
(2) Identifies the beneficiary of the trust;
(3) Identifies the declarant as trustee and title holder; and
(4) Identifies the property as being held in trust under the Maryland Discretionary Trust Act.
Creation of trust by transfer of property upon future event
(c) A person having the right to transfer property upon a future event may create a trust upon the occurrence of the future event by:
(1) Designating:
(i) The event;
(ii) The property;
(iii) The beneficiary; and
(iv) The trustee or mechanism for selecting the trustee; and
(2) Creating the trust by:
(i) Making the designation in a will, a trust, a deed, an insurance policy, an instrument exercising a power of appointment, or a writing designating a beneficiary of contractual rights; or
(ii) Registering the designation with or delivering it to the fiduciary, payor, issuer, or obligor of the future right.
Language that creates trust
(d) A transferor creates a trust whenever the transferor registers property in the name of or transfers property to the trustee or declarant and uses in substance the following words after the trustee's or declarant's name: “As trustee for __________ (name of beneficiary) under the Maryland Discretionary Trust Act.”
Beginning of obligations of trustee
(e) The obligations of a trustee begin when the trustee accepts the trust property by writing in substance the following words:
“Trustee's Receipt and Acceptance
I, __________ (name of trustee) acknowledge receipt of the trust property described below or in the attached instrument and accept the trust as trustee for __________ (name of beneficiary) under the Maryland Discretionary Trust Act. I undertake to administer and distribute the trust property pursuant to the Maryland Discretionary Trust Act. The trust property consists of __________ (description of property).
Dated:
 
 
(Signature of Trustee)”
Creation of trust by language specifying that property is held in trust
(f) A trust may be created by specifying that property is to be held in trust under the Maryland Discretionary Trust Act.
Conditions to create trust under this subtitle
(g)(1) A trust may be created under this subtitle if, at the time the trust is created, the transferor, the trustee, or the beneficiary is a resident of this State, the transferor's, the trustee's, or the beneficiary's principal place of business is in this State, or trust property is located in this State.
(2) The trust remains subject to this subtitle even upon a subsequent change in residence or principal place of business of the transferor or trustee, or removal of the trust property from this State.
(3) A registration, declaration, or transfer made under an act of another state substantially similar to this subtitle:
(i) Is governed by the law of that state; and
(ii) May be enforced in this State.
Application of subtitle
(h)(1) This subtitle may not limit other means of declaring trusts or transferring property in trust.
(2) A trust, the terms of which do not conform to this subtitle, may be enforceable according to its terms.

Credits

Added by Acts 1994, c. 418, § 1, eff. Oct. 1, 1994.
MD Code, Estates and Trusts, § 14-404, MD EST & TRST § 14-404
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document