What are the trust funding requirements?
In Maryland, there are certain requirements that must be met before trust funds can be legally funded and enforced. Generally, the trust must be established in writing and must include the name of the trustee and the beneficiary, the purpose of the trust, the terms and conditions of the trust, and the terms for revoking the trust. Furthermore, the intention of the grantor to create the trust must be clearly expressed and the trust fund must have a stated source of assets. In addition, Maryland law requires that the trust fund must contain only funds that are clearly intended for its purpose. It must also contain assets of fair-market value or above and the trust deed must provide for the payment of taxes for income generated by the trust. Lastly, the trustee must be over the age of 18 and must be a qualified individual or entity, such as a trust company, bank, or other financial institution. In conclusion, when establishing a trust in Maryland, it is important to understand the trust funding requirements. The trust fund must be created in writing and must include the names of the trustee and beneficiary, the purpose of the trust, the terms and conditions of the trust, and the terms for revoking the trust. Along with this, the trust must contain only assets of fair-market value or above and must contain assets intended for its purpose, the trustee must be over the age of 18 and must be a qualified individual or entity.
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