Estates and Trusts - Spousal Lifetime Access Trusts

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0185*

HOUSE BILL 185
N2 6lr1297
HB 50/25 – JUD (PRE–FILED) CF 6lr1278
By: Delegate Cardin
Requested: October 22, 2025
Introduced and read first time: January 14, 2026
Assigned to: Judiciary

A BILL ENTITLED

AN ACT concerning 1

Estates and Trusts – Spousal Lifetime Access Trusts 2

FOR the purpose of adding to the circumstances under which an individual who creates a 3
trust for the benefit of the individual’s spouse may not be considered the settlor of 4
the trust with regard to the individual’s interest in the trust; and generally relating 5
to spousal lifetime access trusts. 6

BY repealing and reenacting, with amendments, 7
Article – Estates and Trusts 8
Section 14.5–1003 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Estates and Trusts 14

14.5–1003. 15

(A) IN THIS SECTION , “SPOUSE” MEANS THE INDIVIDUAL TO WHOM AN 16
INDIVIDUAL WHO CREAT ED A TRUST WAS MARRI ED AT THE TIME THE T RUST WAS 17
CREATED. 18

[(a)] (B) An individual who creates a trust may not be considered the settlor of 19
that trust with regard to the individual’s interest in the trust if: 20

(1) That interest is the authority of the trustee under the trust instrument 21
or any other provision of law to pay or reimburse the individual for any tax on trust income 22
2 HOUSE BILL 185

or trust principal that is payable by the individual under the law imposing that tax; [or] 1

(2) All of the following apply: 2

(i) The individual creates or has created the trust for the benefit of 3
the individual’s spouse; 4

(ii) The trust is treated as qualified terminable interest property 5
under § 2523(f) of the Internal Revenue Code of 1986; and 6

(iii) The individual’s interest in the trust income, trust principal, or 7
both follows the termination of the spouse’s prior interest in the trust; OR 8

(3) ALL OF THE FOLLOWING APPLY: 9

(I) THE INDIVIDUAL CREATES OR HAS CREATED THE TRUST: 10

1. FOR THE BENEFIT OF TH E INDIVIDUAL ’S SPOUSE 11
DURING THE LIFETIME OF THE SPOUSE; OR 12

2. FOR THE BENEFIT OF THE INDIVIDUAL’S SPOUSE AND 13
ANY OTHER BENEFICIARY DURING THE LIFETIME OF THE SPOUSE; 14

(II) THE TRUST DOES NOT ME ET THE REQUIREMENTS OF ITEM 15
(2) OF THIS SUBSECTION; 16

(III) THE TRUST IS IRREVOCABLE; AND 17

(IV) AFTER THE DEATH OF TH E INDIVIDUAL ’S SPOUSE , THE 18
INDIVIDUAL IS A BENEFICIARY OF THE TRUST THROUGH THE EXERCISE OF A POWER 19
OF APPOINTMENT BY THE INDIVIDUAL’S SPOUSE OR BY ANOTHER INDIVIDUAL WHO 20
DID NOT CREATE THE TRUST. 21

[(b)] (C) A creditor of an individual described in subsection [(a)] (B) of this 22
section may not attach, exercise, reach, or otherwise compel distribution of: 23

(1) Any principal or income of the trust; 24

(2) Any principal or income of any other trust to the extent that the 25
property held in the other trust is attributable to a trust described in subsection [(a)(2)] 26
(B)(2) OR (3) of this section; 27

(3) The individual’s interest in the trust; or 28

(4) The individual’s interest in any other trust to the extent that the 29
HOUSE BILL 185 3

property held in the other trust is attributable to a trust described in subsection [(a)(2)] 1
(B)(2) OR (3) of this section. 2

[(c)] (D) This section may not be construed to affect any State law with respect 3
to a fraudulent transfer by an individual to a trustee. 4

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2026. 6