Bill > SB12

This bill modifies Maryland law regarding Spousal Lifetime Access Trusts (SLATs), which are estate planning tools that allow individuals to transfer assets to a trust for their spouse's benefit while potentially reducing tax liability. The bill defines "spouse" as the individual to whom the trust creator was married when the trust was created and establishes three scenarios where the trust creator would not be considered the settlor of the trust: (1) when the trust allows reimbursement for tax obligations, (2) when the trust is created for the spouse and meets specific qualified terminable interest property requirements, or (3) when the trust is created for the spouse's lifetime benefit, is irrevocable, and allows the original creator to potentially become a beneficiary after the spouse's death through a power of appointment. Importantly, the bill also prohibits creditors from attaching or reaching the trust's principal or income in these scenarios, which provides additional asset protection. The legislation aims to provide more flexibility and protection for individuals creating trusts for their spouses while maintaining certain legal safeguards. The bill is set to take effect on October 1, 2025.

Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0012?ys=2025RS