Section 14-403 - Eligibility to create trust; trustees; trustee succession. - Maryland Statutes

§ 14-403. Eligibility to create trust; trustees; trustee succession.
 

(a)  Eligibility to create trusts.- Any person having the right to transfer property to another person may create a trust as a transferor under this subtitle. 

(b)  Trustees - Rights and powers of transferor.- The transferor may: 

(1) As declarant serve as trustee; 

(2) Designate a trustee; 

(3) Designate how the trustee will be chosen; 

(4) Designate successor trustees in the order in which they will serve; and 

(5) Designate how successor trustees will be chosen. 

(c)  Same - Duties.- The trustee shall hold, manage, expend, and transfer trust property as provided in this subtitle. 

(d)  Same - Successor trustees.- The successor trustee shall assume the responsibilities of the trustee when the trustee is no longer willing or able to serve. 

(e)  Number of beneficiaries and trustees.- A trust may have only one beneficiary but more than one trustee. 

(f)  Trustees - Liability; declination; resignation.- A trustee: 

(1) Is not personally liable to a third person: 

(i) On a contract properly entered into in a fiduciary capacity unless the trustee fails to reveal that capacity or to identify the trust in the contract; or 

(ii) For an obligation arising from control of trust property or for a tort committed in the course of the administration of the trust, unless the trustee is personally at fault; 

(2) May decline to serve as trustee before accepting trust property by notifying in writing the person who designated the trustee, or that person's legal representative; and 

(3) May resign as trustee by notifying the successor trustee in writing, transferring all trust property to the successor trustee, providing the successor trustee with a complete accounting of trust property, and confirming that the successor trustee has accepted the trust property. 

(g)  Procedure for trustee succession.- The next willing successor trustee in line shall accept the records and trust property and become trustee as soon as practicable after: 

(1) The resignation of the trustee; 

(2) The declination of the trustee; 

(3) The death of the trustee; or 

(4) The removal of the trustee. 

(h)  Absence of successor trustee.- If the trustee is unable or unwilling to serve and no successor trustee will serve, the following persons in the order listed may petition the court to designate a successor trustee: 

(1) The transferor or the legal representative of the transferor; 

(2) The trustee; 

(3) The beneficiary or the beneficiary's legal representative; 

(4) The guardian of the person of the beneficiary; 

(5) An adult member of the beneficiary's family or that family member's legal representative; or 

(6) A person interested in the trust property or a person interested in the welfare of the beneficiary, either of whom the court determines to have a legitimate interest. 

(i)  Change of trustee, successor trustees by transferor.- Unless renounced by the transferor, the transferor may at any time remove or change the designation of the trustee and successor trustees. 
 

[1994, ch. 418; 1995, ch. 3, § 1.]