# Estates and Trusts (GET)

## Title 13. Protection of Minors, Disabled Persons, Susceptible Adults, and Older Adults

### Subtitle 3

#### Section 13-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Adult" means an individual who has attained the age of 21 years.

(c) "Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others.

(d) "Conservator" means a person appointed or qualified by a court to act as general, limited, or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions.

(e) "Court" means a circuit court, an orphans' court, or a court exercising the jurisdiction of an orphans' court.

(f) "Custodial property" means:

  (1) Any interest in property transferred to a custodian under this subtitle; and

  (2) The income from and proceeds of that interest in property.

(g) "Custodian" means a person so designated under Sec. 13-309 of this subtitle or a successor or substitute custodian designated under Sec. 13-318 of this subtitle.

(h) "Financial institution" means a bank, trust company, savings institution, or credit union chartered and supervised under State or federal law.

(i) "Legal representative" means an individual's personal representative or conservator.

(j) "Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by adoption.

(k) "Minor" means an individual who has not attained the age of 21 years.

(l) "Person" means an individual, corporation, organization, or other legal entity.

(m) "Personal representative" means an executor, administrator, successor personal representative, or special administrator of a decedent's estate or a person legally authorized to perform substantially the same functions.

(n) "Qualified minor's trust" means a trust, including a trust created by a custodian for the use and benefit of a minor:

  (1) Of which a minor is the sole beneficiary during the minor's lifetime; and

  (2) That meets the requirements of Sec. 2503(c) of the Internal Revenue Code and the regulations implementing that section.

(o) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States.

(p) "Transfer" means a transaction that creates custodial property under Sec. 13-309 of this subtitle.

(q) "Transferor" means a person who makes a transfer under this subtitle.

#### Section 13-302

(a) This subtitle applies to a transfer that refers to the Maryland Uniform Transfers to Minors Act in the designation under Sec. 13-309(a) of this subtitle by which the transfer is made if at the time of the transfer the transferor, the minor, or the custodian is a resident of this State or the custodial property is located in this State.

(b) The custodianship created remains subject to this subtitle despite a subsequent change in residence of a transferor, the minor, or the custodian, or the removal of custodial property from this State.

(c) A person designated as custodian under this subtitle is subject to personal jurisdiction in this State with respect to any matter relating to the custodianship.

(d) A transfer that purports to be made and which is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act, or a substantially similar act of another state is governed by the law of the designated state and may be executed and is enforceable in this State if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state.

#### Section 13-303

(a) A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: "as custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act".

(b) The nomination may name 1 or more persons as substitute custodians to whom the property must be transferred, in the order named, if the 1st nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve.

(c) The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payor, issuer, or other obligor of the contractual rights.

(d) A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under Sec. 13-309(a) of this subtitle.

(e)

  (1) The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under Sec. 13-309 of this subtitle.

  (2) Unless the nomination of a custodian has been revoked, upon the occurrence of the future event the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to Sec. 13-309 of this subtitle.

#### Section 13-304

A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to Sec. 13-309 of this subtitle.

#### Section 13-305

(a) A personal representative or trustee may make an irrevocable transfer pursuant to Sec. 13-309 of this subtitle to a custodian for the benefit of a minor as authorized in the governing will or trust.

(b) If the testator or settlor has nominated a custodian under Sec. 13-303 of this subtitle to receive the custodial property, the transfer must be made to that person.

(c) If the testator or settlor has not nominated a custodian under Sec. 13-303 of this subtitle, or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve as custodian for property of that kind under Sec. 13-309(a) of this subtitle.

#### Section 13-306

(a) Subject to subsection (c) of this section, a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to Sec. 13-309 of this subtitle, in the absence of a will or under a will or trust that does not contain an authorization to do so.

(b) Subject to subsection (c) of this section, a conservator may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to Sec. 13-309 of this subtitle.

(c) A transfer under subsection (a) or (b) of this section may be made only if:

  (1) The personal representative, trustee, or conservator considers the transfer to be in the best interest of the minor;

  (2) The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and

  (3) The transfer is authorized by the court if it exceeds $25,000 in value.

#### Section 13-307

(a) Subject to subsections (b) and (c) of this section, a person not subject to Sec. 13-305 or Sec. 13-306 of this subtitle who holds property of or owes a liquidated debt to a minor not having a conservator may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to Sec. 13-309 of this subtitle.

(b) If a person having the right to do so under Sec. 13-303 of this subtitle has nominated a custodian under that section to receive the custodial property, the transfer must be made to that person.

(c) If no custodian has been nominated under Sec. 13-303 of this subtitle, or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, a transfer under this section may be made to an adult member of the minor's family or to a trust company unless the property exceeds $10,000 in value.

#### Section 13-308

A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to this subtitle.

#### Section 13-309

(a) Custodial property is created and a transfer is made whenever:

  (1) An uncertificated security or a certificated security in registered form is either:

    (i) Registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act"; or

    (ii) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b) of this section;

  (2) Money is paid or delivered to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act";

  (3) The ownership of a life or endowment insurance policy or annuity contract is either:

    (i) Registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act"; or

    (ii) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act";

  (4) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act";

  (5) An interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act";

  (6) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either:

    (i) Issued in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act"; or

    (ii) Delivered to an adult other than the transferor or to a trust company, endorsed to that person, followed in substance by the words: "As custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act"; or

  (7) An interest in any property not described in paragraphs (1) through (6) of this subsection is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in subsection (b) of this section.

(b) An instrument in the following form satisfies the requirements of subsection (a)(1)(ii) and (7) of this section:

"Transfer Under the Maryland Uniform

Transfers to Minors Act

I, __________ (name of transferor or name and representative capacity if a fiduciary) hereby transfer to __________ (name of custodian), as custodian for __________ (name of minor) under the Maryland Uniform Transfers to Minors Act, the following: (insert a description of the custodial property sufficient to identify it).

Dated: _______________

_________________________________

(signature) ____________________ (name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under the Maryland Uniform Transfers to Minors Act.

Dated: ________________

__________________________________"

(signature of custodian)

(c) A transferor shall place the custodian in control of the custodial property as soon as practicable.

#### Section 13-310

(a) Subject to subsection (c) of this section, a transfer may be made only for 1 minor, and only 1 person may be the custodian.

(b) All custodial property held under this subtitle by the same custodian for the benefit of the same minor constitutes a single custodianship.

(c)

  (1) Notwithstanding any provision of this subtitle to the contrary, 2 persons may be designated as custodians of custodial property for the benefit of the same minor and that arrangement shall constitute a single custodianship.

  (2) If 2 persons are designated as custodians, they shall act as joint custodians under this subtitle and, unless specified otherwise in any document creating the custodianship, each joint custodian shall have the full power and authority to act alone as a custodian under this subtitle.

  (3) If either joint custodian resigns, dies, becomes incapacitated, or is removed, the remaining custodian may serve as sole custodian without the necessity of appointing a successor joint custodian.

#### Section 13-311

(a) The validity of a transfer made in a manner prescribed in this subtitle is not affected by:

  (1) Failure of the transferor to comply with Sec. 13-309(c) of this subtitle concerning possession and control;

  (2) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under Sec. 13-309(a) of this subtitle; or

  (3) Death or incapacity of a person nominated under Sec. 13-303 of this subtitle or designated under Sec. 13-309 of this subtitle as custodian or the disclaimer of the office by that person.

(b) A transfer made under Sec. 13-309 of this subtitle is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties, and authority provided in this subtitle, and neither the minor nor the minor's legal representative has any right, power, duty, or authority with respect to the custodial property except as provided in this subtitle.

(c) By making a transfer, the transferor incorporates in the disposition all the provisions of this subtitle and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights, and immunities provided in this subtitle.

#### Section 13-312

(a) A custodian shall:

  (1) Take control of custodial property;

  (2) Register or record title to custodial property if appropriate; and

  (3) Collect, hold, manage, invest, and reinvest custodial property.

(b)

  (1) Except as provided in paragraph (2) of this subsection, in dealing with custodial property:

    (i) A custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries;

    (ii) If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise; and

    (iii) A custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor.

  (2) A fiduciary subject to Sec. 15-114 of this article shall comply with that section in dealing with custodial property.

(c) A custodian may invest in or pay premiums on life insurance or endowment policies on:

  (1) The life of the minor only if the minor or the minor's estate is the sole beneficiary; or

  (2) The life of another person in whom the minor has an insurable interest only to the extent that the minor, the minor's estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary.

(d)

  (1) A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor.

  (2) Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed.

  (3) Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: "As a custodian for _____?(name of minor) under the Maryland Uniform Transfers to Minors Act".

(e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained the age of 14 years.

#### Section 13-313

(a) A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only.

(b) This section does not relieve a custodian from liability for breach of Sec. 13-312 of this subtitle.

#### Section 13-314

(a) In this section, "disabled" has the meaning stated in 42 U.S.C. Sec. 1382c(a)(3).

(b) A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:

  (1) The duty or ability of the custodian personally or of any other person to support the minor; or

  (2) Any other income or property of the minor which may be applicable or available for that purpose.

(c)

  (1) Subject to paragraphs (3) and (4) of this subsection, a custodian may transfer all or part of the custodial property to a qualified minor's trust without a court order.

  (2) A transfer of custodial property to a qualified minor's trust terminates the custodianship of that property to the extent of the transfer.

  (3) Custodial property created under a testamentary instrument may not be transferred under this subsection unless the transfer is expressly authorized by the instrument.

  (4) For an inter vivos transfer under this subsection to be valid, the instrument that created the custodial property shall contain in conspicuous type a statement that the transferor of the property elects to grant the custodian the authority to transfer all or part of the custodial property to a qualified minor's trust without a court order.

(d) If the minor is disabled, a custodian may, without court order, use all or part of the custodial property to establish or fund for the benefit of the minor:

  (1) A special needs trust, provided that the trustee is subject to the jurisdiction of a court, bonded, and required to file annual accountings of the trust;

  (2) A pooled asset special needs trust account, provided that the trust has been approved by the attorney general of the state where the minor resides; or

  (3) An ABLE account.

(e) On petition of an interested person or the minor if the minor has attained the age of 14 years, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor.

(f) A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.

#### Section 13-315

(a) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.

(b) Except for one who is a transferor under Sec. 13-304 of this subtitle, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year.

(c) Except as provided in Sec. 13-318(f) of this subtitle, a custodian need not give a bond.

#### Section 13-316

A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining:

(1) The validity of the purported custodian's designation;

(2) The propriety of, or the authority under this subtitle for, any act of the purported custodian;

(3) The validity or propriety under this subtitle of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or

(4) The propriety of the application of any property of the minor delivered to the purported custodian.

#### Section 13-317

(a) A claim based on any of the following may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable:

  (1) On a contract entered into by a custodian acting in a custodial capacity;

  (2) For an obligation arising from the ownership or control of custodial property; or

  (3) On a tort committed during the custodianship.

(b) A custodian is not personally liable:

  (1) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or

  (2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.

(c) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.

#### Section 13-318

(a)

  (1) A person nominated under Sec. 13-303 of this subtitle or designated under Sec. 13-309 of this subtitle as custodian may decline to serve by delivering a valid disclaimer to the person who made the nomination or to the transferor or the transferor's legal representative.

  (2) If the event giving rise to a transfer has not occurred and no substitute custodian able, willing, and eligible to serve was nominated under Sec. 13-303 of this subtitle, the person who made the nomination may nominate a substitute custodian under Sec. 13-303 of this subtitle.

  (3) In other cases, the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property under Sec. 13-309 of this subtitle.

  (4) The custodian designated has the rights of a successor custodian.

(b)

  (1) A custodian at any time may designate a trust company or an adult other than a transferor under Sec. 13-304 of this subtitle as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor.

  (2) If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated, or is removed.

(c) A custodian may resign at any time by delivering written notice to the minor if the minor has attained the age of 14 years and to the successor custodian and by delivering the custodial property to the successor custodian.

(d)

  (1) If a custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor and the minor has attained the age of 14 years, the minor may designate as successor custodian, in the manner prescribed in subsection (b) of this section, an adult member of the minor's family, a conservator of the minor, or a trust company.

  (2) If the minor has not attained the age of 14 years or fails to act within 60 days after the ineligibility, death, or incapacity, the conservator of the minor becomes successor custodian.

  (3) If the minor has no conservator or the conservator declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family, or any other interested person may petition the court to designate a successor custodian.

(e)

  (1) A custodian who declines to serve under subsection (a) of this section or resigns under subsection (c) of this section, or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian.

  (2) The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.

(f) A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian of the person of the minor, the conservator of the minor, or the minor if the minor has attained the age of 14 years may petition the court to remove the custodian for cause and to designate a successor custodian other than a transferor under Sec. 13-304 of this subtitle or to require the custodian to give appropriate bond.

#### Section 13-319

(a) A minor who has attained the age of 14 years, the minor's guardian of the person or legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court for:

  (1) An accounting by the custodian or the custodian's legal representative; or

  (2) A determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under Sec. 13-317 of this subtitle to which the minor or the minor's legal representative was a party.

(b) A successor custodian may petition the court for an accounting by the predecessor custodian.

(c) The court, in a proceeding under this subtitle or in any other proceeding, may require or permit the custodian or the custodian's legal representative to account.

(d) If a custodian is removed under Sec. 13-318(f) of this subtitle, the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property.

#### Section 13-320

The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of:

(1) The minor's attainment of 21 years of age with respect to custodial property transferred under Sec. 13-304, Sec. 13-305, or Sec. 13-306 of this subtitle;

(2) The minor's attainment of age 18 with respect to custodial property transferred under Sec. 13-307 of this subtitle; or

(3) The minor's death.

#### Section 13-321

This subtitle applies to a transfer within the scope of Sec. 13-302 of this subtitle made on or after July 1, 1989, if:

(1) The transfer purports to have been made under the Maryland Uniform Gifts to Minors Act; or

(2) The instrument by which the transfer purports to have been made uses in substance the designation "As custodian under the Uniform Gifts to Minors Act" or "As custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this subtitle is necessary to validate the transfer.

#### Section 13-322

(a) Any transfer of custodial property as now defined in this subtitle made before July 1, 1989, is validated notwithstanding that there was no specific authority in the Maryland Uniform Gifts to Minors Act for the coverage of custodial property of that kind or for a transfer from that source at the time the transfer was made.

(b) This subtitle applies to all transfers made before July 1, 1989, in a manner and form prescribed in the Maryland Uniform Gifts to Minors Act, except insofar as the application impairs constitutionally vested rights or extends the duration of custodianships in existence on the effective date of this subtitle.

(c) With respect to the age of a minor for whom custodial property is held, this subtitle does not apply to custodial property held in a custodianship that terminated because of the minor's attainment of the age of 18 before July 1, 1989.

#### Section 13-323

(a) This subtitle shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this subtitle among states enacting it.

(b) This subtitle may not be construed as providing an exclusive method for making transfers to minors.

#### Section 13-323.1

(a) In this section, "reasonable and necessary expense" includes:

  (1) Suit money;

  (2) Counsel fees; and

  (3) Costs.

(b) At any point in a proceeding under this subtitle, the court may order either party to pay to the other party an amount for the reasonable and necessary expense of prosecuting or defending the proceeding.

(c) Before ordering the payment, the court shall consider:

  (1) The financial resources and financial needs of both parties; and

  (2) Whether there was substantial justification for prosecuting or defending the proceeding.

(d) On a finding by the court that there was an absence of substantial justification of a party for prosecuting or defending the proceeding, the court may award to the other party the reasonable and necessary expense of prosecuting or defending the proceeding.

(e) The court may award reimbursement for any reasonable and necessary expense that previously has been paid.

(f) As to any amount awarded for counsel fees, the court may:

  (1) Order that the amount awarded be paid directly to the lawyer; and

  (2) Enter judgment in favor of the lawyer.

#### Section 13-324

This subtitle may be cited as the "Maryland Uniform Transfers to Minors Act".

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