Maryland 2025 Regular Session

Maryland House Bill HB50 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0050
6	6
7	7	HOUSE BILL 50
8	8	N2 5lr1549
9	9	(PRE–FILED) CF SB 12
10	10	By: Delegate Cardin
11	11	Requested: October 31, 2024
12	12	Introduced and read first time: January 8, 2025
13	13	Assigned to: Judiciary
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Estates and Trusts – Spousal Lifetime Access Trusts 2
20	20
21	21	FOR the purpose of adding to the conditions under which an individual who creates a trust 3
22	22	may not be considered the settlor of the trust with regard to the individual’s interest 4
23	23	in the trust; providing that a creditor of an individual may not attach, exercise, reach, 5
24	24	or otherwise compel distribution of certain trust assets in certain circumstances; and 6
25	25	generally relating to spousal lifetime access trusts. 7
26	26
27	27	BY repealing and reenacting, with amendments, 8
28	28	Article – Estates and Trusts 9
29	29	Section 14.5–1003 10
30	30	Annotated Code of Maryland 11
31	31	(2022 Replacement Volume and 2024 Supplement) 12
32	32
33	33	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
34	34	That the Laws of Maryland read as follows: 14
35	35
36	36	Article – Estates and Trusts 15
37	37
38	38	14.5–1003. 16
39	39
40	40	(A) IN THIS SECTION , “SPOUSE” MEANS THE INDIVIDUAL TO WHOM AN 17
41	41	INDIVIDUAL WHO CREAT ED A TRUST WAS MARRI ED AT THE TIME THE T RUST WAS 18
42	42	CREATED. 19
43	43
44	44	[(a)] (B) An individual who creates a trust may not be considered the settlor of 20
45	45	that trust with regard to the individual’s interest in the trust if: 21
46	46
47	47	(1) That interest is the authority of the trustee under the trust instrument 22 2 HOUSE BILL 50
48	48
49	49
50	50	or any other provision of law to pay or reimburse the individual for any tax on trust income 1
51	51	or trust principal that is payable by the individual under the law imposing that tax; [or] 2
52	52
53	53	(2) All of the following apply: 3
54	54
55	55	(i) The individual creates or has created the trust for the benefit of 4
56	56	the individual’s spouse; 5
57	57
58	58	(ii) The trust is treated as qualified terminable interest property 6
59	59	under § 2523(f) of the Internal Revenue Code of 1986; and 7
60	60
61	61	(iii) The individual’s interest in the trust income, trust principal, or 8
62	62	both follows the termination of the spouse’s prior interest in the trust; OR 9
63	63
64	64	(3) ALL OF THE FOLLOWING APPLY: 10
65	65
66	66	(I) THE INDIVIDUAL CREATE S OR HAS CREATED THE TRUST: 11
67	67
68	68	1. FOR THE BENEFIT OF TH E INDIVIDUAL’S SPOUSE 12
69	69	DURING THE LIFETIME OF THE SPOUSE ; OR 13
70	70
71	71	2. FOR THE BENEFIT OF TH E INDIVIDUAL’S SPOUSE AND 14
72	72	ANY OTHER BENEFICIAR Y DURING THE LIFETIM E OF THE SPOUSE ; 15
73	73
74	74	(II) THE TRUST DOES NOT ME ET THE REQUIREMENTS OF ITEM 16
75	75	(2) OF THIS SUBSECTION ; 17
76	76
77	77	(III) THE TRUST IS IRREVOCA BLE; AND 18
78	78
79	79	(IV) AFTER THE DEATH OF TH E INDIVIDUAL’S SPOUSE, THE 19
80	80	INDIVIDUAL IS A BEN EFICIARY OF THE TRUS T THROUGH THE EXERCI SE OF A POWER 20
81	81	OF APPOINTMENT BY TH E INDIVIDUAL’S SPOUSE OR BY ANOTH ER INDIVIDUAL WHO 21
82	82	DID NOT CREATE THE T RUST. 22
83	83
84	84	[(b)] (C) A creditor of an individual described in subsection [(a)] (B) of this 23
85	85	section may not attach, exercise, reach, or otherwise compel distribution of: 24
86	86
87	87	(1) Any principal or income of the trust; 25
88	88
89	89	(2) Any principal or income of any other trust to the extent that the 26
90	90	property held in the other trust is attributable to a trust described in subsection [(a)(2)] 27
91	91	(B)(2) OR (3) of this section; 28
92	92
93	93	(3) The individual’s interest in the trust; or 29
94	94	HOUSE BILL 50 3
95	95
96	96
97	97	(4) The individual’s interest in any other trust to the extent that the 1
98	98	property held in the other trust is attributable to a trust described in subsection [(a)(2)] 2
99	99	(B)(2) OR (3) of this section. 3
100	100
101	101	[(c)] (D) This section may not be construed to affect any State law with respect 4
102	102	to a fraudulent transfer by an individual to a trustee. 5
103	103
104	104	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6
105	105	October 1, 2025. 7
106	106