Section 14-106 - Division or consolidation. - Maryland Statutes

§ 14-106. Division or consolidation.
 

(a)  Beneficiary defined.- 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)  In general.-  

(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)  Applicability.- 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)  Construction.- 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. 
 

[1989, ch. 385, § 1.]