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. This form is an example of a trust that is subject to direct court oversight since the initial trust funds resulted from a civil judgment in favor of a minor.
Maryland Trust Agreement for Funds for Recovery of Judgment for Minor is a legal document that establishes a trust to safeguard and manage the funds awarded to a minor as a result of a judgment or settlement. This trust agreement ensures that the minor's best interests are protected and that the funds are used for their benefit until they reach the age of majority. In Maryland, there are two main types of Trust Agreements for Funds for Recovery of Judgment for Minor: 1. Testamentary Trust: A testamentary trust is created through a will and becomes effective after the death of the individual creating the trust (testator). This type of trust agreement is typically used when the funds for recovery of judgment are received after the death of the minor's parent or guardian. 2. Inter Vivos Trust: An inter vivos trust, also known as a living trust, is established during the lifetime of the granter. This type of trust agreement is commonly used when the funds for recovery of judgment are awarded while the minor is still alive and the granter wants to ensure their proper management. Keywords: — Maryland: This indicates that the trust agreement is specific to the state of Maryland and follows the laws and regulations of the state. — Trust Agreement: Refers to the legal document that establishes the terms and conditions of the trust, including how the funds will be managed, distributed, and used. — Funds for Recovery of Judgment: Pertains to the monetary amount awarded to the minor as a result of a judgment or settlement in a legal case. — Recovery of Judgment: Refers to the process of collecting awarded funds from the party responsible for the damages or injuries suffered by the minor. — Minor: Indicates that the trust agreement is specifically designed to protect the interests and financial well-being of individuals under the legal age of adulthood. — Best Interests: Emphasizes that the primary goal of the trust agreement is to ensure the funds are used for the minor's welfare and benefit. — Age of Majority: Refers to the legal age at which a person is considered an adult and gaining full control over their own finances. — Testamentary Trust: Describes a trust created through a will and intended to be effective after the death of the testator. — Inter Vivos Trust: Refers to a trust established during the granter's lifetime and used to manage funds awarded to a minor. In summary, the Maryland Trust Agreement for Funds for Recovery of Judgment for Minor is a legally binding document that establishes a trust to manage and protect the funds awarded to a minor. It is crucial to tailor the trust agreement according to the specific circumstances and choose between a testamentary trust or an inter vivos trust based on when the funds are received.
