In this section the following words have the meanings indicated. “Consideration” does not include the amount of any obligation under a mortgage, deed of trust, or other writing encumbering the transferred property. “Trust” does not include: A real estate investment trust as defined in § 8–101 of the Corporations and Associations Article; or A statutory trust as defined in § 12–101 of the Corporations and Associations Article. “Vehicle” includes: A motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an off–highway recreational vehicle for which sales and use tax is not collected at the time of purchase; or A motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 13–109(c) or (d) of the Transportation Article without a certificate of title. A recordation tax, transfer tax, or any other State or local excise tax may not be imposed on the transfer of real property or an interest in real property without consideration or on the recordation of an instrument that transfers real property or an interest in real property without consideration if: The transfer is to a trust; or The transfer is from a trust to one or more beneficiaries and: The transfer is made to a person that would be exempt from tax under Title 12 or Title 13 of the Tax – Property Article if the transfer had been made to that person directly by the grantor; The transfer is made during the life of the grantor of the trust and the trustee of the trust originally acquired the real property for adequate consideration; or The transfer is made to a beneficiary of a revocable trust as a result of the death of the settlor of the trust. An excise tax or a certificate of title fee imposed under Title 13, Subtitle 8 of the Transportation Article may not be imposed on the issuance of an original or subsequent certificate of title issued for a vehicle that is transferred without consideration if: The transfer is to a trust and the transfer would be exempt from the excise tax under § 13–810 of the Transportation Article if the transferor transferred the vehicle directly to one or more of the beneficiaries; or The transfer is from a trust to one or more beneficiaries of the trust and: The transfer is made to a person that would be exempt from the excise tax under § 13–810 of the Transportation Article if the transfer had been made to that person directly by the transferor of the vehicle to the trust; The transfer is made during the life of the settlor of the trust and the trustee of the trust originally acquired the vehicle for adequate consideration; or The transfer is made to a beneficiary of a revocable trust as a result of the death of the settlor of the trust.

In this section, “special needs trust” and “supplemental needs trust” include a trust funded by a trust beneficiary or by a third party. It is the policy of the State to encourage the use of a special needs trust or supplemental needs trust by an individual of any age with disabilities to preserve funds to provide for the needs of the individual not met by public benefits and to enhance quality of life. Each State agency that provides public benefits to individuals of any age with disabilities through means–tested programs, including the Medical Assistance Program, shall adopt regulations that: Are not more restrictive than existing federal law, regulations, or policies with regard to the treatment of a special needs trust or supplemental needs trust, including a trust defined in 42 U.S.C. § 1396p(c)(2) and (d)(4); Are not more restrictive than any State law regarding trusts, including any State law regarding the reasonable exercise of discretion by a trustee, guardian, or conservator in the best interests of the beneficiary; and Do not require disclosure of a beneficiary’s personal or confidential information without the consent of the beneficiary. The regulations described in paragraph (1) of this subsection shall allow: An individual account in a pooled asset special needs trust to be funded without financial limit; A fund in a special needs trust, supplemental needs trust, or pooled asset special needs trust to be used for the sole benefit of the beneficiary including, at the discretion of the trustee, distributions for food, shelter, utilities, and transportation; An individual to establish or fund an individual account in a pooled asset special needs trust without an age limit or a transfer penalty; An individual to fund a special needs trust or supplemental needs trust for the individual’s child with disabilities without a transfer penalty and regardless of the child’s age; and All legally assignable income or resources to be assigned to a special needs trust, supplemental needs trust, or pooled asset special needs trust without limit. Nothing in this subsection may be interpreted to require a court order to authorize the funding of or a disbursement from a special or supplemental needs trust. A determination of the Internal Revenue Service regarding the nonprofit status of an organization operating a pooled asset special needs trust shall be sufficient to satisfy the nonprofit requirement of 42 U.S.C. § 1396p(d)(4)(C). A State agency may not impose additional requirements on an organization described in paragraph (1) of this subsection for the purpose of qualifying or disqualifying the organization from offering a pooled asset special needs trust. A regulation adopted by a State agency regarding pooled special needs trusts shall apply only to those trust beneficiaries who are State residents or who receive public benefits funded by the State.

An individual who creates a trust may not be considered the settlor of that trust with regard to the individual’s interest in the trust if: That interest is the authority of the trustee under the trust instrument or any other provision of law to pay or reimburse the individual for any tax on trust income or trust principal that is payable by the individual under the law imposing that tax; or All of the following apply: The individual creates or has created the trust for the benefit of the individual’s spouse; The trust is treated as qualified terminable interest property under § 2523(f) of the Internal Revenue Code of 1986; and The individual’s interest in the trust income, trust principal, or both follows the termination of the spouse’s prior interest in the trust. A creditor of an individual described in subsection (a) of this section may not attach, exercise, reach, or otherwise compel distribution of: Any principal or income of the trust; Any principal or income of any other trust to the extent that the property held in the other trust is attributable to a trust described in subsection (a)(2) of this section; The individual’s interest in the trust; or The individual’s interest in any other trust to the extent that the property held in the other trust is attributable to a trust described in subsection (a)(2) of this section. This section may not be construed to affect any State law with respect to a fraudulent transfer by an individual to a trustee.

The provisions of this title governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of those records or signatures, conform to the requirements of § 102 of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. §�7002) and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act.

If a provision of this title or the application of a provision to a person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this title which can be given effect without the invalid provision or application, and to this end the provisions of this title are severable.

Except as otherwise provided in this title: This title applies to all trusts created before, on, or after January 1, 2015; This title applies to all judicial proceedings concerning trusts commenced on or after January 1, 2015; This title does not apply to judicial proceedings concerning trusts commenced before January 1, 2015; A rule of construction or presumption provided in this title applies to trust instruments executed before January 1, 2015, unless there is a clear indication of a contrary intent in the terms of the trust; and An act done before January 1, 2015, is not affected by this title. If a right is acquired, extinguished, or barred on the expiration of a prescribed period that has commenced to run under another statute before January 1, 2015, that statute continues to apply to the right even if the statute has been repealed or superseded.