2015 Maryland Code
ESTATES AND TRUSTS
Title 14.5 - MARYLAND TRUST ACT.
Subtitle 5 - CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS.
§ 14.5-504 - Spendthrift provisions.

(a) Valid and enforceable. -- A spendthrift provision is valid and enforceable.

(b) Restraint of voluntary and involuntary transfers. -- A provision of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust", or words of similar import, restrains both voluntary and involuntary transfer of the beneficiary's interest.

(c) Judicial foreclosure or attachment prohibited. -- A beneficial interest that is subject to a spendthrift provision may not be judicially foreclosed or attached by a creditor.

(d) Transfer of interest by beneficiary or claim against interest or distribution by creditor prohibited prior to receipt by beneficiary. --

(1) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this subtitle, a creditor or an assignee of the beneficiary may not reach the interest or a distribution by the trustee before the receipt by the beneficiary of the interest or distribution.

(2) An attempt by a beneficiary to transfer an interest in a trust in violation of a valid spendthrift provision shall be void and of no effect.

(e) Transfer of use, occupancy, and enjoyment of residential real property and tangible personal property prohibited. --

(1) The use, occupancy, and enjoyment of a single parcel of residential real property, as designated by the trustee, and tangible personal property by a beneficiary whose interest is subject to a spendthrift provision may not be transferred.

(2) The use, occupancy, and enjoyment described in paragraph (1) of this subsection are not subject to the enforcement of a judgment against the beneficiary.