The MTA adopts verbatim the UTC definition of “revocable.” It means that the trust is revocable by the settlor without the consent of the trustee or a person holding an adverse interest. MTC 14.5-103(s); UTC § 103(14). The comment to the UTC states: “The fact that the settlor becomes incorporated does not convert a revocable trust into an irrevocable trust.” The MTA, at § 14.5-601(c) pulls the UTC comment and makes it explicit, again verbatim.
Both the UTC and the MTA held that: “Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust.” MTA § 14.5-602(a)(1); UTC § 602(a). The Maryland common law held the reverse: trusts were only revocable if the trust instrument expressly so provided. Liberty Trust Co. v. Weber, 200 Md. 491, 504, 90 A.2d 194, 199 (July 15, 1952)(“In Maryland there never was any basis for the contention that, as a matter of law or construction, a reservation of a power of revocation should be implied in a voluntary deed creating a trust.”); Brown v. Mercantile Trust & Deposit Co., 87 Md. 377, 40 A. 256 (1898). Also: “Most states follow the rule that a trust is presumed irrevocable absent evidence of contrary intent.” UTC § 602, cmt.
Although the long standing common law rule is reversed by the MTA, this new rule does not apply to instruments executed before January 2015 – the effective date of the Act. MTA § 14.5-602(a).
