§ 14.5-402

Maryland § 14.5-402

• Jurisdiction: Maryland
• Article get: Estates and Trusts

Text

(a) A trust is created only if:

(1) The settlor has capacity to create a trust;

(2) The settlor indicates an intention to create the trust;

(3) The trust has a definite beneficiary or is:

(i) A charitable trust;

(ii) A trust for the care of an animal, as provided in § 14.5–407 of this subtitle; or

(iii) A trust for a noncharitable purpose, as provided in § 14.5–408 of this subtitle; and

(4) The trustee has duties to perform.

(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(c) (1) A power in a trustee or in another person under the terms of the trust to select a beneficiary from an indefinite class is valid.

(2) If the power described in paragraph (1) of this subsection is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons that would have taken the property had the power not been conferred.