The Statutory Trust for a Child's Settlement in Maryland

By the FigureMyTax Editorial Team · How we calculate

The Maryland trustee for a child's recovery needs no bond and files no accounts, must keep the money in an insured deposit or listed investments, and may withdraw it only on a verified court petition. The institution releases it to the child only at 18, or to the child's estate on death.

Deposit and investment

Section 13-404 says the trustee need not give bond and must deposit the check in a financial institution, within deposit insurance limits, or invest it in United States or State obligations, other obligations rated in the two highest categories, or registered funds that are money market funds or whose stated objective is long-term growth through equity securities. Money market and stock funds together may not exceed 30 percent of the trust assets when invested. The trustee may direct the institution to place the money in a certificate of deposit or other interest-bearing account.

Withdrawals

Section 13-405 says that except on the order of a circuit court the institution may not allow withdrawal except to pay the minor at 18 or the personal representative of the minor's estate on death before 18.

The court petition

Section 13-406 requires the trustee to file a verified petition in the original court action or in the equity court where the money is on deposit, stating in detail the purposes of the withdrawal. If the money is for any purpose other than the minor's medical expenses or education, including reasonable room and board, the court requires a strong showing of necessity at a hearing. The court may direct payment to the trustee or directly to a provider and may direct a reasonable attorney fee and costs, but no fee or commission to the trustee.

No accounts

The trustee need not file any accounts of the trusteeship with any court (13-407).

What we did not find

We did not find provisions in these sections for annuities or structured settlements for a child, and we did not read local court rules. Ask the court what it will accept. Then read when a court gets involved and what we found about attorney fees, and see what is left in the Maryland minor's settlement calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Maryland's rules apply to your specific case with a licensed Maryland attorney.