§ 15-502.1. Unitrusts
West's Annotated Code of MarylandEstates and Trusts
MD Code, Estates and Trusts, § 15-502.1
§ 15-502.1. Unitrusts
(a) A trustee may convert a trust into a unitrust as described in this section if:
(b) In deciding whether to exercise the power conferred by subsection (a) of this section, a trustee shall consider all factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:
(c) After a trust is converted to a unitrust, all of the following apply:
(1) The income of the trust that the income beneficiary is entitled to receive under the governing instrument shall be an annual unitrust distribution equal to a payout percentage of 4% of the net fair market value of the trust's assets, whether those assets would be considered income or principal under any other provision of this subtitle, averaged over the lesser of:
(d) The trustee shall determine:
(e) If authorized by a court order, in accordance with a petition filed under § 15-502.3 of this subtitle, the converted unitrust may provide that:
(f) A trustee may not convert a trust into a unitrust under subsection (a) of this section if:
(5) Possessing or exercising the power to convert would cause all or part of the trust assets to be subject to estate or gift tax with respect to an individual and the assets would not be subject to estate or gift tax with respect to the individual if the trustee did not possess the power to convert; or
(g)(1) If subsection (f)(4), (5), or (6) of this section applies to a trustee and there is more than one trustee, a cotrustee to whom the provision does not apply may convert the trust to a unitrust under subsection (a) of this section, unless exercise of the power by the remaining trustee or trustees is prohibited by the governing instrument.
(h)(1) A trustee may release the power conferred by subsection (a) of this section to convert to a unitrust if:
(i) If the trustee receives a written request from a beneficiary to reconvert a trust from a unitrust, the trustee may reconvert a trust from a unitrust if:
(j) Unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power conferred by subsection (a) of this section, the terms of a trust that limit the power of a trustee to convert to a unitrust do not affect the application of this section.
Credits
Added by Added by Acts 2002, c. 478, § 1, eff. Oct. 1, 2002.
MD Code, Estates and Trusts, § 15-502.1, MD EST & TRST § 15-502.1
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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