What are the requirements for creating a trust?

Creating a trust in Maryland requires a few steps. First, the person creating the trust, known as the "grantor", must decide what type of trust they are creating and who the beneficiaries will be. The grantor must then create a document setting out the terms of the trust. The document must include the grantor’s name, the name of the trust, and the name and age of each beneficiary. In addition, the document must describe how the trust assets will be distributed and who will be responsible for managing the trust assets. This document is called a trust declaration or declaration of trust. The grantor must also decide who will be the trustee of the trust. The trustee is the person responsible for managing the trust assets and making sure the trust is administered according to the terms of the trust declaration. The grantor must provide the trustee with a copy of the trust declaration and any other documents needed to administer the trust. In addition, the grantor must transfer the trust assets to the trustee. This means the grantor must change title or ownership of the assets from the grantor to the trust. The grantor may also need to provide the trustee with any additional documents or information necessary to manage the trust assets. Finally, the trust must be properly funded. This means the grantor must provide enough money or other assets to cover the costs of managing the trust. This could include taxes, legal fees, and other administrative costs. Once these steps are completed, a trust has been created in Maryland and can be administered according to the terms of the trust declaration.

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