• Maryland Statutory Trusts : Enhanced Flexibility and Advantages
  • March 19, 2014 | Authors: Hirsh M. Ament; James J. Hanks; Michael A. Leber; Daniel R.H. Mendelsohn
  • Law Firm: Venable LLP - Baltimore Office
  • The Mary land Statutory Trust Act (the “Mary land Act”) was first enacted in 1999 as the Mary land Business Trust Act in Title 12 of the Corporations and Associations Article of the Annotated Code of Mary land and was substantially amended in 2010. In our experience, Mary land statutory trusts are well-suited to investment companies, particularly registered open - end companies (mutual funds and ETFs), and to companies taxed as re al estate investment trusts and their subsidiaries , among other applications. Indeed, the Mary land Act specifically provides that it “shall be liberally construed to give maximum effect to the principle of freedom of contract and to the enforceability of the governing instrument s. ” This flexibility distinguishes statutory trusts from trusts formed under common law and other types of entities and , due to the ability to eliminate corporate formalities, has made statutory trusts the entity of choice for man y of our investment company and private real estate investment trust clients.