A trust is the legal relationship between one person, the trustee, having an equitable ownership or management of certain property and another person, the beneficiary, owning the legal title to that property. The beneficiary is entitled to the performance of certain duties and the exercise of certain powers by the trustee, which performance may be enforced by a court of equity. Most trusts are founded by the persons (called trustors, settlors and/or donors) who execute a written declaration of trust which establishes the trust and spells out the terms and conditions upon which it will be conducted. The declaration also names the original trustee or trustees, successor trustees or means to choose future trustees.
Maryland Trust Agreement to Hold Funds for Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of Minor is a legal document that establishes a trust to protect and manage the funds awarded to a minor involved in a personal injury lawsuit in Maryland. This agreement ensures that the funds are used for the minor's benefit and are safeguarded until they reach the age of majority. There are various types of Maryland Trust Agreement to Hold Funds for Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of Minor, including: 1. Irrevocable Trust: This type of trust cannot be revoked or modified once it is established. It provides a higher level of financial security for the minor's funds, ensuring they are protected from misuse or mismanagement. 2. Revocable Trust: Unlike an irrevocable trust, a revocable trust can be modified or revoked by the settler (person establishing the trust) during their lifetime. It offers more flexibility but may not provide the same level of asset protection as an irrevocable trust. 3. Special Needs Trust: This type of trust is designed to preserve the minor's eligibility for government benefits, such as Medicaid or Supplemental Security Income. It allows the funds to be used for the minor's needs beyond those covered by public assistance programs. 4. Pooled Trust: A pooled trust combines the assets of multiple beneficiaries with disabilities. This type of trust allows the minor's funds to be managed collectively, reducing administrative costs while ensuring the funds are used for their benefit. 5. Testamentary Trust: A testamentary trust is created through a will and takes effect after the settler's death. It ensures that the minor's funds are held in trust until they reach a specified age or meet certain conditions. Maryland Trust Agreement to Hold Funds for Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of Minor provides a legal mechanism to protect and manage the funds obtained through a personal injury settlement for the benefit of a minor. It is crucial to establish the appropriate type of trust to ensure the minor's financial security and address their unique needs.
