Certificate of Trust — Maryland UTC Adopted
State-specific requirements for a Certificate of Trust in Maryland.Create yours now →
Statutory Citation
Md. Code Ann., Est. & Trs. § 14.5-101 et seq. (Maryland Trust Act, enacted 2014, effective January 1, 2015; based on UTC). Certificate of trust: § 14.5-910. Business/statutory trust: Md. Code Ann., Corps. & Assns. § 12-101 et seq. (Maryland Statutory Trust Act, enacted 1999 as Maryland Business Trust Act, renamed 2004).
Certification Requirements
Under § 14.5-910(a), a certification of trust must contain: (1) that the trust exists and the date the trust instrument was executed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee in the pending transaction; (5) the revocability or irrevocability of the trust and the identity of a person holding a power to revoke; (6) the authority of cotrustees to sign/authenticate and whether all or fewer than all are required to exercise trustee powers; (7) the taxpayer identification number of the trust (unless it is the settlor's SSN); (8) the manner and name in which title to trust property may be taken. § 14.5-910(c): must state the trust has not been revoked, modified, or amended in a manner that would cause representations to be incorrect. Need not contain dispositive terms (§ 14.5-910(d)). No statutory form—statutory requirements only.
Execution Requirements
Certification of trust may be signed or otherwise authenticated by a trustee (§ 14.5-910(b)). No statutory requirement for notary or witnesses on the certification of trust itself. For trust instruments: Maryland does not require notarization for validity of a revocable living trust, but notarization is recommended for practical purposes (recording real property deeds). For statutory/business trusts under Title 12: certificate of trust must be filed with the Department of Assessments and Taxation (SDAT); must be signed and acknowledged by trustees. Recording of trust instrument not required for non-statutory trusts; statutory trusts file certificate with SDAT. Maryland specifically allows title insurance producers/insurers to obtain copy of trust instrument when real property is being sold/encumbered (§ 14.5-910(h)(2)).
Business Trust Treatment
Maryland has a comprehensive statutory trust framework: the Maryland Statutory Trust Act (Title 12, Corporations and Associations). Originally enacted in 1999 as the 'Maryland Business Trust Act,' renamed to 'Statutory Trust Act' in 2004. A statutory trust is an unincorporated trust or association (including common-law trusts, Massachusetts trusts, REITs) that files a certificate of trust with SDAT, becoming a separate legal entity. Common law business/Massachusetts trusts are also recognized. The definition of 'business trust' in Md. Code Ann., Corps. & Assns. § 1-101 includes 'an unincorporated trust or association, including a common-law trust, a Massachusetts trust, a real estate investment trust, a statutory trust, and a foreign statutory trust.' Maryland statutory trusts are widely used in business and real estate investment structures (popular for DST/1031 exchange vehicles).
Favorable Trust Laws
Maryland's statutory trust framework is business-friendly and flexible: statutory trusts are separate legal entities with limited liability for trustees and beneficial owners (governing instrument controls). The Maryland Statutory Trust Act was amended in 2010 and later to enhance flexibility—trustees have broad powers, governing instrument is not filed with SDAT (only certificate of trust), and freedom of contract is emphasized. Maryland has no state-level gift tax. Maryland does have an estate tax (currently coupled with federal for state estate tax). Maryland is one of the few states with both an estate tax and an inheritance tax. For trust situs: Maryland taxes resident trusts (administered in Maryland or with Maryland trustee) on all income; non-resident trusts only on Maryland-source income.
Unique Factors
Maryland is unique because: (1) It has one of the most well-developed statutory trust acts in the US, originally called the 'Business Trust Act'—Maryland statutory trusts are commonly used as Delaware Statutory Trust alternatives for real estate investment trusts (REITs) and 1031 exchange DSTs; (2) The Maryland Trust Act (2014) is based on the UTC but has Maryland-specific modifications including enhanced title insurance company rights to obtain trust documents in real property transactions (§ 14.5-910(h)(2)); (3) Maryland is one of only two states (with New Jersey) that still imposes both an estate tax AND an inheritance tax; (4) Maryland statutory trust governing instruments remain private (not filed with SDAT—only the certificate of trust is public); (5) Maryland was an early adopter of business trust legislation (1999), predating many states' statutory trust acts.