2013 Maryland Code
ESTATES AND TRUSTS
§ 14-106 - Division or consolidation

§14-106.

(a) In this section, “beneficiary” means a person in being who has a vested interest, whether:

(1) Possessory or not; and

(2) Subject to divestment or not.

(b) (1) Subject to the provisions of paragraph (2) of this subsection, on petition by a trustee, personal representative, beneficiary, or a party in interest, after notice as the court may direct to the trustees, personal representatives, beneficiaries, and parties in interest, and for good cause shown, a court may:

(i) Divide a trust into 2 or more separate trusts; or

(ii) Consolidate 2 or more trusts into a single trust.

(2) A court may divide a trust or consolidate trusts:

(i) On terms and conditions as the court considers appropriate; and

(ii) If the court is satisfied that a division of a trust or consolidation of trusts will not defeat or materially impair:

1. The accomplishment of trust purposes; or

2. The interests of the beneficiaries.

(3) A court may pass orders that the court considers proper or necessary to protect the interests of a:

(i) Trustee;

(ii) Personal representative;

(iii) Beneficiary; or

(iv) Party in interest.

(c) This section applies to trusts:

(1) Whenever created;

(2) Whether inter vivos or testamentary;

(3) Created by the same or different instruments;

(4) Created by the same or different persons; and

(5) Regardless of where created or administered.

(d) This section may not be construed to limit the right of a trustee or personal representative to divide a trust or consolidate trusts, without an order of a court, in accordance with the applicable provisions of the governing instrument.