Maryland Statutes
Subtitle 5 - Creditor's Claims; Spendthrift and Discretionary Trusts
Section 14.5-504 - Spendthrift Provisions

(a)    A spendthrift provision is valid and enforceable.
    (b)    A provision of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust”, or words of similar import, restrains both voluntary and involuntary transfer of the beneficiary’s interest.
    (c)    A beneficial interest that is subject to a spendthrift provision may not be judicially foreclosed or attached by a creditor.
    (d)    (1)    A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this subtitle, a creditor or an assignee of the beneficiary may not reach the interest or a distribution by the trustee before the receipt by the beneficiary of the interest or distribution.
        (2)    An attempt by a beneficiary to transfer an interest in a trust in violation of a valid spendthrift provision shall be void and of no effect.
    (e)    (1)    The use, occupancy, and enjoyment of a single parcel of residential real property, as designated by the trustee, and tangible personal property by a beneficiary whose interest is subject to a spendthrift provision may not be transferred.
        (2)    The use, occupancy, and enjoyment described in paragraph (1) of this subsection are not subject to the enforcement of a judgment against the beneficiary.

Structure Maryland Statutes