MD SB12

Expands conditions under which a trust creator is not considered the "settlor" for purposes of their own interest in the trust, specifically adding Spousal Lifetime Access Trusts (SLATs) to existing exceptions

Defines qualifying SLATs as irrevocable trusts created for the benefit of a spouse (alone or with other beneficiaries) during the spouse's lifetime, where the creator may become a beneficiary after the spouse's death through a power of appointment

Protects SLAT assets from the trust creator's creditors, who cannot attach, exercise, reach, or compel distribution of trust principal, income, or the creator's interest

Extends creditor protection to other trusts holding property attributable to a qualifying SLAT

Preserves existing state law regarding fraudulent transfers to trustees; effective October 1, 2025