Maryland Estates and Trusts Section 14-106

Article - Estates and Trusts

§ 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.



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