GO TO PASTERNAKFIDIS.COM
DC Metro Trust Code
  • About this website
  • FAQ
  • Trust code legislative history
  • About Pasternak & Fidis

Comparison of Uniform Trust Code, DC Trust Code, Maryland Trust Act, and Virginia Trust Code, with Annotations

  • Preamble
  • Article 1
  • Article 2
  • Article 3
  • Article 4
  • Article 5
  • Article 6
  • Article 7
  • Article 8
  • UPIA-UTC Article 9
  • Article 10
  • Article 11
Limit the display as desired by selecting the HIDE/SHOW buttons above each column. Access annotations by clicking
A

MD §14.5-508(c) provides that the holder of a withdrawal power is treated as if the holder were the settlor of the property in a revocable trust whenever the power is in effect. This subsection was previously codified in subsection (b) – before enactment of the above-described revocable trust claims provision – and it relates to the ability of a withdrawal powerholder’s creditors to reach trust property. N.B. Pursuant to MD §14.5-1003, an individual who creates a lifetime QTIP trust for his or her spouse, and who retains a secondary life estate if the spouse predeceases the transferor, is not considered a settlor for purposes of creditor claims.

VA §64.2-747(A)(2) provides that a trustee’s discretionary authority to pay directly or to reimburse the settlor for any tax on trust income or principal that is payable by the settlor shall not be considered to be an amount distributable to or for the settlor’s benefit and a creditor of the settlor shall not be entitled to reach any amount solely by reason of this discretionary authority. This provision is intended to prevent a creditor from reaching the assets of a grantor trust for income tax purposes solely because of the settlor’s liability for the tax on the trust income. MD §14.5-1003(a)(1) similarly provides that a settlor’s liability for income taxes on trust property, i.e., grantor trust status, does not per se enable the settlor’s creditors to reach property of such trust.

Hide/Show UTC · Hide/Show DC · Hide/Show MD · Hide/Show VA

UTC

No equivalent.

DC

No equivalent.

MD

§ 14.5-1003. Interests in grantor and qualified terminable interest property trusts.

A

***Former MD E&T 14-116 re-enacted***
(a) 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:
(1) 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
(2) All of the following apply:
(i) The individual creates or has created the trust for the benefit of the individual’s spouse;
(ii) The trust is treated as qualified terminable interest property under § 2523(f) of the Internal Revenue Code of 1986; and
(iii) The individual’s interest in the trust income, trust principal, or both follows the termination of the spouse’s prior interest in the trust.
(b) A creditor of an individual described in subsection (a) of this section may not attach, exercise, reach, or otherwise compel distribution of:
(1) Any principal or income of the trust;
(2) 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;
(3) The individual’s interest in the trust; or
(4) 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.
(c) This section may not be construed to affect any State law with respect to a fraudulent transfer by an individual to a trustee.

VA

No equivalent.

← Previous Article Next Article →

The materials available on this site are for informational purposes only and not for the purpose of providing legal advice. While we make every effort to present accurate and reliable information on this site, we cannot guarantee its accuracy or completeness.

Current Through: 7/25/2019

Copyright © 2022 Pasternak & Fidis, P.C. All rights reserved. DCMetroTrustCode.com

7101 Wisconsin Avenue, Suite 1025

Bethesda, MD 20814

phone 301.656.8850 · fax 301.656.3053