§ 14-106. Division or consolidation

   (a) "Beneficiary" defined. -- In this section, "beneficiary" means a person in being who has a vested interest, whether:

   (1) Possessory or not; and

   (2) Subject to divestment or not.

(b) In general. --

   (1) Subject to the provisions of paragraph (2) of this subsection, on petition by a trustee, personal representative, beneficiary, or a party in interest, after notice as the court may direct to the trustees, personal representatives, beneficiaries, and parties in interest, and for good cause shown, a court may:

      (i) Divide a trust into 2 or more separate trusts; or

      (ii) Consolidate 2 or more trusts into a single trust.

   (2) A court may divide a trust or consolidate trusts:

      (i) On terms and conditions as the court considers appropriate; and

      (ii) If the court is satisfied that a division of a trust or consolidation of trusts will not defeat or materially impair:

         1. The accomplishment of trust purposes; or

         2. The interests of the beneficiaries.

   (3) A court may pass orders that the court considers proper or necessary to protect the interests of a:

      (i) Trustee;

      (ii) Personal representative;

      (iii) Beneficiary; or

      (iv) Party in interest.

(c) Applicability. -- This section applies to trusts:

   (1) Whenever created;

   (2) Whether inter vivos or testamentary;

   (3) Created by the same or different instruments;

   (4) Created by the same or different persons; and

   (5) Regardless of where created or administered.

(d) Construction. -- This section may not be construed to limit the right of a trustee or personal representative to divide a trust or consolidate trusts, without an order of a court, in accordance with the applicable provisions of the governing instrument.

HISTORY: 1989, ch. 385, § 1.