# Estates and Trusts (GET)

## Title 11. Miscellaneous Rules

### Subtitle 1. General

#### Section 11-101

(a) Any contingent remainder arising under any will or inter vivos transfer shall be capable of taking effect, regardless of the determination of any preceding estate of freehold, in the same manner and in all respects as if the determination had not happened.

(b) It is not necessary to appoint trustees to support the contingent remainder in order to prevent the destruction of it.

#### Section 11-102

(a) In this section, "usufructuary" means a person having a usufruct or right to enjoy a thing in which the person has no property interest.

(b) Subject to Sec.Sec. 4-409 of this article and 11-103 of this subtitle, the common-law rule against perpetuities as now recognized in the State is preserved, but the rule does not apply to the following:

  (1) A legacy or inter vivos conveyance having a value of $5,000 or less, or of any burial lot of any value, in trust or otherwise, for the purpose of providing for the perpetual care or keeping in good order and condition, or making repairs to, any lot, vault, mausoleum, or other place of sepulture belonging to any individual or several individuals in any cemetery or graveyard, the lots in which are intended for the burial of members of the family, family connections, relatives, or friends of the owners, or their successors in ownership;

  (2) A legacy or inter vivos conveyance intended to transfer assets from any corporation incorporated for charitable objects, to any other charitable corporation on a contingency or future event;

  (3) A trust created by an employer as part of a pension, stock bonus, disability, death benefit, profit-sharing, retirement, welfare, or other plan for the exclusive benefit of some or all of the employees of the employer or their beneficiaries, to which contributions are made by the employer or employees, or both the employer and employees, for the purpose of making distributions to or for the benefit of employees or their beneficiaries out of the income or principal or both the income and principal of the trust, or for any other purposes set out in the plan;

  (4) A trust for charitable purposes, which shall include all purposes as are within the spirit or letter of the statute of 43 Elizabeth Ch. 4 (1601), commonly known as the statute of charitable uses;

  (5) A trust in which the governing instrument states that the rule against perpetuities does not apply to the trust and under which the trustee, or other person to whom the power is properly granted or delegated, has the power under the governing instrument, applicable statute, or common law to sell, lease, or mortgage property for any period of time beyond the period that is required for an interest created under the governing instrument to vest, so as to be good under the rule against perpetuities;

  (6) An option of a tenant to renew a lease;

  (7) An option of a tenant to purchase all or part of the premises leased by the tenant that is exercisable only during the term of the lease;

  (8) An option of a usufructuary to extend the scope of an easement or profit;

  (9) The right of a county, a municipality, a person from whom land is acquired, or the successor-in-interest of a person from whom land is acquired, to acquire land from the State in accordance with Sec. 8-309 of the Transportation Article;

  (10) A right or privilege, including an option, warrant, pre-emptive right, right of first refusal, right of first option, right of first negotiation, call right, exchange right, or conversion right, to acquire an interest in a domestic or foreign joint venture, partnership, limited liability partnership, limited partnership, limited liability limited partnership, corporation, cooperative, limited liability company, business trust, statutory trust, or similar enterprise, whether the interest is characterized as a joint venture interest, partnership interest, limited partnership interest, membership interest, security, stock, or otherwise;

  (11) A nondonative property interest as described in Sec. 11-102.1 of this subtitle;

  (12) A trust created under Sec. 14.5-407 of this article to provide for the care of an animal alive during the lifetime of the settlor; or

  (13) An affordable housing land trust agreement executed under Title 14, Subtitle 5 of the Real Property Article.

#### Section 11-102.1

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Lives in being" means the lives of particular individuals in existence at the time of the creation of a nondonative property interest.

  (3) "Nondonative" means given for consideration other than nominal consideration.

  (4)

    (i) "Property interest" means a contract, lease,  option, right of first offer, right of first refusal, right of first negotiation, or similar preemptive right relating to a right to the use, possession, transfer, or ownership of real or personal property or an interest in or appurtenant to real or personal property.

    (ii) "Property interest" includes a right of the type described in subparagraph (i) of this paragraph even if the right is not applicable until after another party has failed to exercise or consummate a prior right of the same type.

    (iii) "Property interest" does not include a property interest, power of appointment, or contract to exercise a release of a power of appointment arising out of:

      (1) A premarital or postmarital agreement;

      (2) A separation or divorce settlement;

      (3) An election by a spouse;

      (4) An arrangement arising out of a prospective, existing, or prior marital relationship between the parties to the relationship;

      (5) A contract to make or not to revoke a will or trust;

      (6) A contract to exercise or not to exercise a power of appointment;

      (7) A transfer in satisfaction of a duty of support; or

      (8) A reciprocal transfer.

(b) The common-law rule against perpetuities as now recognized in the State does not apply to a nondonative property interest that becomes effective on or after October 1, 2007.

(c)

  (1) For the purposes of this section, a nondonative property interest becomes effective as of the date of delivery of the property interest.

  (2) The date of delivery is presumed to be the later of:

    (i) The date of the last acknowledgment of the nondonative property interest, if any; or

    (ii) The date stated in the document creating  the nondonative property interest.

(d)

  (1) A nondonative property interest that becomes effective on or after October 1, 2007, shall be void unless the nondonative property interest:

    (i) Is not subject to the rule against perpetuities under Sec. 11-102 of this subtitle; or

    (ii) Is exercised or vested within the applicable period of time set forth in paragraph (2), (3), or (4) of this subsection.

  (2) A document creating a nondonative property interest that does not state a date or make reference to lives in being by which the property interest must be exercised or vested shall be void unless exercised or vested within 7 years of the effective date of the property interest.

  (3) A document creating a nondonative property interest that either expressly states a date by which the property interest shall be exercised or vested or one from which the date may be determined shall be void on the earlier of the expressed or determined date or 60 years after the effective date of the property interest.

  (4) A document creating a nondonative property interest that refers to one or more lives in being for determining the date by which the property interest shall be exercised or vested shall be void:

    (i) If the reference is to the duration of not more than 10 identified lives in being and not more than 21 years, at the expiration of the period of time referenced; or

    (ii) If the reference is to the duration of more than 10 identified lives in being or to identified lives in being and more than 21 years, at the expiration of 60 years.

#### Section 11-103

(a)

  (1) In applying the rule against perpetuities to an interest limited to take effect at or after the termination of one or more life estates in, or lives of, persons in being when the period of the rule commences to run, the validity of the interest shall be determined on the basis of facts existing at the termination of one or more life estates or lives.

  (2) In this section an interest which must terminate not later than the death of one or more persons is a "life estate" even though it may terminate at an earlier date.

(b) If an interest would violate the rule against perpetuities as modified by subsection (a) of this section because the interest is contingent upon any person attaining or failing to attain an age in excess of 21, the age contingency shall be reduced to 21 as to all persons subject to the same age contingency.

(c) This section shall apply to both legal and equitable interests.

#### Section 11-104

Whenever by any form of words in any will or inter vivos conveyance, a remainder is limited, mediately or immediately, to the heirs or heirs of the body of a person to whom a life estate in the same subject matter is given, the persons who on the termination of the life estate are then the heirs or heirs of the body of the tenant for life, take as purchasers by virtue of the contingent remainder limited to them.

#### Section 11-105

(a) As used in this section, the words "death benefits" mean death benefits of any kind, including, but not limited to, proceeds of life insurance policies and payments under an employees' trust or contract purchased by a trust forming part of a pension, stock bonus, or profit-sharing plan, or under a retirement annuity contract.

(b)

  (1) Death benefits may be made payable to the trustee under a trust agreement, or declaration of trust in existence at the time of the death of the insured, employee, or annuitant.

  (2) The death benefits shall be held and disposed of by the trustee in accordance with the terms of the trust as they appear in writing on the date of the death of the insured, employee, or annuitant.

  (3) It is not necessary to the validity of a trust agreement or declaration of trust, whether revocable or irrevocable, that it have a trust corpus other than the right of the trustee to receive death benefits.

(c)

  (1) Death benefits may be made payable to the trustee named, or to be named, in a will of the insured or the owner of the policy, or the employee covered by the plan or contract whether or not the will is in existence at the time of the designation.

  (2) On the admission of the will to probate, and the payment of the benefits to the trustee, the benefits shall be held, administered, and disposed of in accordance with the terms of the testamentary trust created by the will.

(d) In the event no trustee makes claim for the death benefits within a period of one year after the date of death of the insured, employee, or annuitant, or if satisfactory evidence is furnished to the insurance company or other obligor within such one-year period that there is or will be no trustee to receive the proceeds, payment shall be made by the insurance company or other obligor to the personal representative of the person making the designation, unless otherwise provided by agreement.

(e) Death benefits payable as provided in this section, unless paid to a personal representative under the provisions of subsection (d) of this section, are not considered part of the estate of the decedent, and are not subject to any obligation to pay taxes, debts, or other charges enforceable against the estate of the decedent, except as provided in Sec. 7-308 of the Tax - General Article.

(f) Death benefits held in trust may be commingled with other assets which may properly come into the trust.

#### Section 11-106

(a) Unless otherwise expressly provided by a will or other controlling instrument, under which a gift is made to or for the benefit of the surviving spouse of a decedent which qualifies for an estate tax marital deduction under the tax law of the United States and the amount or size of the gift is defined by the terms of the will or other controlling instrument in terms of the maximum marital deduction allowable under the tax law, the definitions do not constitute a direction by the decedent to the fiduciary to exercise an election respecting the deduction of estate administration expenses or the determination of the estate tax valuation date, which the fiduciary may have under the tax law, only in a manner as will result in a larger allowable estate tax marital deduction than if the contrary election had been made.

(b)

  (1) In this subsection the following words have the meanings indicated.

    (i) "Marital deduction formula clause" means any provision of a will or other controlling instrument that makes a bequest or transfer, the size or amount of which is determined in whole or in part with reference to the amount allowable to a decedent's estate as a marital deduction under the tax law of the United States.

    (ii) "Qualified terminable interest property" means property described in Sec. 2056(b)(7) of the Internal Revenue Code.

  (2) If a will or other controlling instrument executed on or before September 12, 1981 contains a marital deduction formula clause, an election by the personal representative or other authorized person to treat property not transferred pursuant to the clause as qualified terminable interest property for purposes of the estate tax marital deduction under the tax law of the United States shall neither increase nor decrease the amount or fraction of the estate, trust, or other fund transferred pursuant to the clause, unless a codicil to the will or amendment to another controlling instrument executed after September 12, 1981 shall expressly otherwise provide.

#### Section 11-107

Whenever a will or other governing instrument:

(1) Specifically authorizes a fiduciary to satisfy a legacy or transfer by selection and distribution of assets in kind; and

(2) Provides that the value of the assets to be distributed shall be determined by reference to their value for purposes of payment of federal estate taxes, the fiduciary shall distribute assets, including cash, having an aggregate fair market value at the date or dates of distribution amounting to no less than the amount of the legacy or transfer as finally determined for federal estate tax purposes unless the will or other governing instrument expressly directs to the contrary.

#### Section 11-108

(a)

  (1) Unless the instrument creating a power of appointment expressly provides to the contrary, the power may be wholly or partially released as to all or a portion of the assets subject to it by an instrument signed by the person holding the power and attested by two witnesses.

  (2) If the person is under 18 years of age or is otherwise under disability, a release pursuant to this section may be executed by order of the court having jurisdiction of the person or property of the person under disability.

(b)

  (1) A release pursuant to subsection (a) of this section shall:

    (i) Identify the instrument creating the power of appointment;

    (ii) State the place the instrument was recorded or admitted to probate;

    (iii) Contain a statement of the extent to which the power is released; and

    (iv) Specify any limitation which the release, if partial, places upon the persons, objects, or classes in whose favor the power would otherwise be exercisable.

  (2) The release, whether or not for consideration or under seal, after delivery as provided in subsection (c) of this section, is irrevocable from and after the time it is delivered.

(c) A release pursuant to subsection (a) shall be delivered:

  (1) To the register of the county in which the will creating the power of appointment was admitted to probate or recorded;

  (2) To the clerk of the appropriate court for recordation among the land records of the county in which the instrument creating the power of appointment has been recorded; or

  (3) In the case of instruments creating powers of appointment which are not recorded, to the person making the instrument which created the power of appointment or to any person holding, individually, or jointly with others, a substantial portion of the assets subject to the power of appointment.

(d) A release referred to in this section also may be recorded among the land records of the county in which the maker or fiduciary resides.

(e)

  (1) The register or clerk shall:

    (i) Index and record the release in the same manner as the instrument creating the power of appointment was recorded; and

    (ii) Make a reference in the margin of the place of recording of the original instrument of the date and place of recording of the release.

  (2) The releases shall be subject to the usual fees for indexing and recordation, but shall not be subject to a recordation tax now or hereafter imposed.

(f) A power of appointment also may be released by any means or method valid or effective in the absence of this section.

#### Section 11-109

(a) A conviction or attainder does not work corruption of blood or forfeiture of estate.

(b) The estate of a person who commits suicide shall descend or vest like that of a person who dies a natural death.

(c) A killing of a person by casualty does not cause a forfeiture of estate.

#### Section 11-110

(a)

  (1) A will or trust of a decedent who dies after December 31, 2009, and before January 1, 2011, that contains a formula referring to the "unified credit", "estate tax exemption", "applicable exemption amount", "applicable credit amount", "applicable exclusion amount", "generation-skipping transfer tax exemption", "GST exemption", "marital deduction", "maximum marital deduction", or "unlimited marital deduction", or similar words or phrases relating to the federal estate tax or generation-skipping transfer tax or that measures a share of an estate or a trust based on the amount that can pass free of federal estate taxes or the amount that can pass free of federal generation-skipping transfer taxes, or that is otherwise based on a similar provision of federal estate tax or generation-skipping transfer tax law, shall be deemed to refer to the federal estate tax or generation-skipping transfer tax laws as they applied with respect to estates of decedents dying or generation-skipping transfers made on December 31, 2009.

  (2) This subsection does not apply to a will or trust that:

    (i) Is executed or amended after December 31, 2009; or

    (ii) Manifests an intent that a contrary rule shall apply if the decedent dies on a date on which there is no then applicable federal estate tax or generation-skipping transfer tax.

  (3) The reference to January 1, 2011, in this subsection shall, if a federal estate tax or generation-skipping transfer tax becomes applicable before that date, be construed to refer instead to the first date on which the tax becomes applicable.

(b)

  (1) The personal representative or any interested person under a will or other instrument may bring a proceeding to determine whether the decedent intended that the references described in subsection (a) of this section be construed with respect to the law as it existed after December 31, 2009.

  (2) A proceeding under this subsection shall be commenced within 1 year after the death of the testator or grantor.

#### Section 11-111

(a) A person convicted of unlawfully obtaining property from a victim in violation of Sec. 8-801(b) of the Criminal Law Article shall be disqualified from inheriting, taking, enjoying, receiving, or otherwise benefitting from the estate, insurance proceeds, or property of the victim, to the extent provided in Sec. 8-801(e) of the Criminal Law Article.

(b) A person disqualified from inheriting, taking, enjoying, receiving, or otherwise benefitting from the estate, insurance proceeds, or property of the victim in accordance with subsection (a) of this section shall be treated as if the person predeceased the victim.

(c) In the event a distribution is erroneously made to a person disqualified from inheriting, taking, enjoying, receiving, or otherwise benefitting from the estate, insurance proceeds, or property of the victim in violation of subsection (a) of this section, the disqualified person shall make full restitution to the heir, legatee, or beneficiary who should have received the distribution in accordance with subsection (b) of this section.

(d) A fiduciary or other person who distributes property in good faith and without actual knowledge of a conviction under Sec. 8-801 of the Criminal Law Article is not personally liable for the distribution.

#### Section 11-112

(a) In this section, "disqualified person" means a person who feloniously and intentionally kills, conspires to kill, or procures the killing of the decedent.

(b)

  (1) Except as provided in paragraph (2) of this subsection, a disqualified person shall be treated as if the disqualified person disclaimed the property or interest in the property at the time of the decedent's death.

  (2) The provisions of Sec. 4-403 of this article do not apply to this section.

  (3) A disqualified person shall be disqualified from:

    (i) Inheriting;

    (ii) Taking;

    (iii) Enjoying;

    (iv) Receiving; or

    (v) Otherwise benefiting from the:

      (1) Death;

      (2) Probate estate; or

      (3) Nonprobate property of the decedent;

    (vi) Receiving a general or special power of appointment conferred by the will or trust of the decedent; and

    (vii) Serving as a personal representative, guardian, or trustee of a trust created by the decedent.

(c)

  (1) The survivorship interest of a disqualified person in property held with the decedent, including a form of co-ownership with incidents of survivorship, is severed at the time of the death of the decedent and the property passes as if the decedent and the disqualified person have no rights by survivorship.

  (2) This section does not apply to the survivorship interest of a third party.

(d) A disqualified person who is a named beneficiary of a life insurance policy on the decedent or other contractual arrangement with the decedent is not entitled to a benefit under the policy or contractual arrangement.

(e)

  (1)

    (i) In a civil proceeding a person may allege that another person is a disqualified person.

    (ii) A person may not file a civil action alleging that another person is a disqualified person after the later of:

      (1) 3 years from the date of the decedent's death; or

      (2) If the alleged disqualified person is criminally charged within 3 years from the date of the decedent's death with feloniously and intentionally killing, conspiring to kill, or procuring the killing of the decedent, 1 year from the date that the criminal charge is filed.

  (2) On request of a party in a civil proceeding in which a person is alleged to be a disqualified person, the civil proceeding shall be stayed pending a final judgment in a case in which the alleged disqualified person is criminally charged with feloniously and intentionally killing, conspiring to kill, or procuring the killing of the decedent.

  (3)

    (i) For purposes of this section, only a person who would be entitled to obtain property if another person is found to be a disqualified person, or the person's representative, may provide notice to a third party that another person is a disqualified person.

    (ii) For purposes of this section, a person described in subparagraph (i) of this paragraph or the person's representative may not provide notice to a third party that a person is a disqualified person later than the time for filing a civil action described in this subsection.

(f)

  (1) A third party, including an insurance company, bank, or other obligor, making a payment according to the terms of a policy or obligation, is not liable by reason of this section unless, before the payment is made, the third party has received at the home office or principal address of the third party written notice of an alleged disqualified person under this section.

  (2) A third party, including an insurance company, a bank, or any other obligor, who files an interpleader regarding an amount owed may not be liable to an alleged disqualified person for wrongful dishonor or any other claim relating to the amount owed.

(g)

  (1) A third party who purchases property for value and without notice or who receives a payment or other item of property in partial or full satisfaction of a legally enforceable obligation is not obligated under this section to return the payment, item of property, or benefit, and is not liable under this section for the amount of the payment or the value of the item of property or benefit.

  (2) A person who, not for value, receives a payment, an item of property, or any other benefit to which the person is not entitled under this section is obligated to return the payment or item of property, and is personally liable for the amount of the payment or the value of the item of property or benefit to the person who is entitled to receive the payment, item of property, or other benefit.

(h) In the event a distribution is erroneously made to a disqualified person, the disqualified person shall make full restitution to the heir, legatee, beneficiary, or joint tenant who should have received the distribution in accordance with this section.

(i) Notwithstanding any other provision of this section, an interested person or a named beneficiary of a life insurance policy on the decedent or other contractual arrangement with the decedent may seek a determination in the proper court, by declaratory judgment or otherwise, that the person or named beneficiary is not a disqualified person and other relief.

(j)

  (1) A final conviction of felonious and intentional killing, conspiring to kill, or procuring the killing of a decedent is admissible in a civil proceeding in which a person is alleged to be a disqualified person and is conclusive for purposes of this section.

  (2) In the absence of a final conviction described in paragraph (1) of this subsection, the trier of fact in a civil proceeding may determine by a preponderance of evidence whether a person feloniously and intentionally killed, conspired to kill, or procured the killing of the decedent for purposes of this section.

  (3) Nothing in this section affects a right to a jury trial which otherwise exists.

#### Section 11-113

(a) If a decedent consented in a written record to use of the decedent's genetic material for posthumous conception in accordance with the requirements of Sec. 20-111 of the Health - General Article, the following shall be filed with the register of wills for the county in which the decedent's estate is probated in the State or, if there is no probate estate filed, with the register of wills for the county in which the decedent was domiciled in the State at the date of death:

  (1) A copy of a posthumously conceived child's birth record; and

  (2) The written consents required by Sec. 1-205(a)(2) or Sec. 3-107(b) of this article.

(b)

  (1) Subject to paragraph (2) of this subsection, the written consents required by Sec. 1-205(a)(2) or Sec. 3-107(b) of this article shall be filed under subsection (a) of this section within 6 months after the date of the decedent's death.

  (2) With respect to a decedent who dies between October 1, 2012, and May 30, 2013, inclusive, the written consents required by Sec. 1-205(a)(2) or Sec. 3-107(b) of this article shall be filed under subsection (a) of this section by December 1, 2013.

  (3) A copy of a posthumously conceived child's birth record shall be filed within 2 years and 60 days after the date of the decedent's death.

(c) Absent the filing as required in this section of a posthumously conceived child's birth record and the written consents required by Sec. 1-205(a)(2) or Sec. 3-107(b) of this article:

  (1) A person holding property that passes by reason of the death of the decedent may distribute or deliver the property without liability for a claim by any posthumously conceived child unknown to the person; and

  (2) The transferee of any such property shall be entitled to receive the property without liability for a claim by any posthumously conceived child unknown to the transferee.

#### Section 11-114

(a) Unless good cause is shown for the appointment, a court may not appoint, as a guardian of the person of a minor or disabled person, a person who has been convicted of:

  (1) A felony;

  (2) A crime of violence, as defined in Sec. 14-101 of the Criminal Law Article;

  (3) Assault in the second degree; or

  (4) A sexual offense in the third or fourth degree or attempted rape or sexual offense in the third or fourth degree.

(b) Unless good cause is shown for the appointment, a court may not appoint, as a guardian of the property of a minor or disabled person, a person who has been convicted of a crime that reflects adversely on an individual's honesty, trustworthiness, or fitness to perform the duties of a guardian of the property of a minor or disabled person, including fraud, extortion, embezzlement, forgery, perjury, and theft.

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Md. Code Ann., Est. & Trusts (as displayed at mgaleg.maryland.gov, October 16, 2026)