Plain English Breakdown
The official source material did not provide additional details beyond what is included in the summary.
Maryland Trust Act - In Terrorem Clause Void
This law makes certain clauses in trusts that punish people for contesting the trust or taking legal action against it invalid under specific conditions.
What This Bill Does
- Adds a new section to Maryland's Estates and Trusts laws, stating that if there is probable cause for someone to challenge a trust, any clause in the trust that punishes them for doing so is not valid.
Who It Names or Affects
- People who create trusts in Maryland
- Individuals involved in trust disputes
Terms To Know
- In terrorem clause
- A part of a trust that stops someone from challenging the trust by threatening them with penalties.
Limits and Unknowns
- The law only applies to cases and actions after July 1, 2026.
- It does not change how trusts were handled before this date.