74                                     LAWS OF MARYLAND                             [CH. 3

on the basis of facts existing at the termination of such one or more
life estates or lives. In this Section an interest which must ter-
minate not later than the death of one or more persons is a "life
estate" even though it may terminate at an earlier date.

(b)    If an interest would violate the rule against perpetuities as
modified by subsection (a) because such interest is contingent upon
any person attaining or failing to attain an age in excess of twenty-
one, the age contingency shall be reduced to twenty-one as to all
persons subject to the same age contingency.

(c)    This Section shall apply to both legal and equitable interests.

11-104. Rule in Shelley's case abolished.

Whenever by any form of words in any will or inter vivos con-
veyance a remainder shall be limited, mediately or immediately, to
the heirs or heirs of the body of a person to whom a life estate in the
same subject matter is given, the persons who on the termination of
the life estate are then the heirs or heirs of the body of such tenant
for life, shall take as purchasers by virtue of the contingent re-
mainder so limited to them.

11-105. Death benefits payable to inter vivos and testamentary
trusts.

(a)    Definition. As used in this section, the words "death bene-
fits" shall mean death benefits of any kind, including, but not limited
to, proceeds of life insurance policies and payments under an em-
ployees' trust (or contract purchased by such a trust) forming part
of a pension, stock bonus or profit-sharing plan, or under a retirement
annuity contract.

(b)    Payments to trustee under existing inter vivos trust. Death
benefits may be made payable to the trustee under a trust agree-
ment, or declaration of trust, in existence at the time of the death
of the insured, employee or annuitant. Such death benefits shall be
held and disposed of by such trustee in accordance with the terms
of the trust as they appear in writing on the date of the death of the
insured, employee or annuitant. It shall not be necessary to the
validity of any such trust agreement or declaration of trust, whether
revocable or irrevocable, that it have a trust corpus other than the
right of the trustee to receive such death benefits.

(c)    Payments to trustee under testamentary trust. Death bene-
fits may be made payable to the trustee named, or to be named, in a
will of the insured or the owner of the policy, or the employee
covered by such plan or contract, as the case may be, whether or not
such will is in existence at the time of such designation. Upon the
admission of such will to probate, and the payment of the benefits
to the trustee, such benefits shall be held, administered, and disposed
of in accordance with the terms of the testamentary trust created
by the will.

(d)&n