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RULE 10-802. LIABILITY FOR CLAIMS AGAINST DECEDENT-SETTLOR

West's Annotated Code of MarylandMaryland RulesEffective: October 1, 2021

West's Annotated Code of Maryland
Maryland Rules
Title 10. Guardians and Other Fiduciaries
Chapter 800. Revocable Trusts
Effective: October 1, 2021
MD Rules, Rule 10-802
RULE 10-802. LIABILITY FOR CLAIMS AGAINST DECEDENT-SETTLOR
Currentness
(a) Generally. After the death of a settlor, subject to Code, Estates and Trusts Article, § 14.5-508 (b)(1) and the right of the settlor to direct the source from which liabilities will be paid, the property of a trust that was revocable at the death of the settlor is subject to claims of the creditors of the decedent-settlor.
Cross-reference: See Code, Estates and Trusts Article, § 14.5-508 (a)(5).
(b) Responsibilities of Trustee Where Estate Proceeding Commenced. If a proceeding has been commenced to administer the estate of a decedent-settlor other than a small estate, the trustee, property, and beneficiaries of a revocable trust are not liable for claims of creditors of the settlor that are not presented in the estate proceeding pursuant to Rule 6-413.
(c) Responsibilities of Trustee Where No Estate Proceeding Commenced.
(1) If a proceeding to administer the estate of the decedent-settlor has not been commenced, or if a small estate has been commenced, the trustee of a revocable trust of which the decedent was a settlor may publish a notice pursuant to subsections (c)(2) and (3) of this Rule. Publication of the notice shall afford the trust property, trustee, and beneficiaries of the trust with the protections afforded in Code, Estates and Trusts Article, § 8-103, for claims presented more than six months after the date of the first publication of the notice.
(2) The trustee's notice to creditors shall be substantially in the following form:
Notice to Creditors of a Settlor of a Revocable Trust To all persons interested in the trust of __________:
This is to give notice that __________ died on or about __________. Before the decedent's death, the decedent created a revocable trust for which the undersigned, __________, whose address is __________, is now a trustee.
To have a claim satisfied from the property of this trust, a person who has a claim against the decedent shall present the claim on or before the date that is six months after the date of the first publication of this notice to the undersigned trustee at the address stated above. The claim shall include the following information:
1. A verified written statement of the claim indicating its basis;
2. The name and address of the claimant;
3. If the claim is not yet due, the date on which it will become due;
4. If the claim is contingent, the nature of the contingency;
5. If the claim is secured, a description of the security; and
6. The specific amount claimed.
Any claim not presented to the trustee on or before that date or any extension provided by law is unenforceable. (Signature of Trustee)
Date of first publication: __________.
(3) The trustee shall publish the notice once a week for three successive weeks in a newspaper of general circulation in what would otherwise be the proper venue for an administration of judicial probate for that decedent.
(4) Claims against the decedent-settlor are forever barred as against the trust property, trustee, and beneficiaries of the trust unless, within six months of first publication of notice, the creditor (A) files an action against the trustee and serves a copy of the complaint on the trustee within 30 days of filing or (B) presents a claim to the trustee with the information required by the notice.
(5) If the trustee disallows the claim wholly or in a stated amount, the claimant is forever barred to the extent of the disallowance unless the claimant files an action against the trustee or against any person to whom the trust property has been distributed within 60 days after the mailing of the notice of disallowance by the trustee to the claimant. The notice informing the claimant of the disallowance shall contain a warning to the claimant concerning the time limitation for commencing an action.
Cross-reference: See Code, Estates and Trusts Article, § 14.5-508 (b)(2)-(6).
Source: This Rule is new.

Credits

[Adopted July 9, 2021, eff. Oct. 1, 2021.]
MD Rules, Rule 10-802, MD R GUARD AND FIDUCIARIES Rule 10-802
Current with amendments received through February 1, 2024. Some sections may be more current, see credits for details.
End of Document