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§ 14.5-504. Spendthrift provisions

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 5. Creditor's Claims; Spendthrift and Discretionary Trusts (Refs & Annos)
Effective: January 1, 2015
MD Code, Estates and Trusts, § 14.5-504
§ 14.5-504. Spendthrift provisions
Currentness
In general
(a) A spendthrift provision is valid and enforceable.
Voluntary or involuntary transfers of beneficiary’s interest
(b) A provision of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust”, or words of similar import, restrains both voluntary and involuntary transfer of the beneficiary's interest.
(c) A beneficial interest that is subject to a spendthrift provision may not be judicially foreclosed or attached by a creditor.
Transfers of interest in trust prior to receipt by beneficiary
(d)(1) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this subtitle, a creditor or an assignee of the beneficiary may not reach the interest or a distribution by the trustee before the receipt by the beneficiary of the interest or distribution.
(2) An attempt by a beneficiary to transfer an interest in a trust in violation of a valid spendthrift provision shall be void and of no effect.
Use, occupancy, and enjoyment of single parcel of residential real property or tangible personal property
(e)(1) The use, occupancy, and enjoyment of a single parcel of residential real property, as designated by the trustee, and tangible personal property by a beneficiary whose interest is subject to a spendthrift provision may not be transferred.
(2) The use, occupancy, and enjoyment described in paragraph (1) of this subsection are not subject to the enforcement of a judgment against the beneficiary.

Credits

Added by Acts 2014, c. 585, § 1, eff. Jan. 1, 2015.
MD Code, Estates and Trusts, § 14.5-504, MD EST & TRST § 14.5-504
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.
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