Bill > HB50

This bill modifies Maryland law regarding Spousal Lifetime Access Trusts (SLATs), a type of estate planning tool that allows individuals to transfer assets to an irrevocable trust for their spouse's benefit while potentially reducing estate taxes. The bill clarifies and expands provisions about when a trust creator (settlor) can be considered to have retained certain interests in a trust without being fully taxable. Specifically, the bill adds a new provision allowing a trust creator to have a potential future interest in the trust after their spouse's death, through a power of appointment, without being considered the full owner of the trust assets. The bill also protects these trusts from creditor claims, preventing creditors from attaching or reaching trust principal or income under certain circumstances. Additionally, the bill provides a specific definition of "spouse" as the individual to whom the trust creator was married when the trust was created. The legislation will take effect on October 1, 2025, giving individuals and legal professionals time to understand and prepare for the new trust rules.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0050?ys=2025RS