WILLIAM DONALD SCHAEFER, Governor

Ch. 262

Annotated Code of Maryland

(1988 Volume and 1992 Supplement)

BY adding to

Article - Tax - General
Section 10-204(g) and 10-902(e)
Annotated Code of Maryland
(1988 Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

10-101.

(h) (1) "Resident" means:

(iii) a fiduciary, other than a personal representative, of a trust if:

1.       the trust was created, or consists of property transferred, by
the will of a decedent who was domiciled in the State on the date of the decedent's death;

2.        [the creator or grantor of the trust was a resident of the
State on the date the trust was created;

3.] the creator or grantor of the trust is a current resident of the
State; or

[4.] 3. the trust is principally administered in the State.

10-204.

(G) (1) IN THIS SUBSECTION, "REMAINDERMAN REMAINDERMEN"
INCLUDES A PERSON WHOSE REMAINDER INTEREST IS VESTED, CONTINGENT, OR
VESTED SUBJECT TO DIVESTMENT.

(2) THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES
ANY CAPITAL LOSS DERIVED FROM THE SALE OR OTHER DISPOSITION OF
INTANGIBLE PERSONAL PROPERTY THAT IS HELD IN TRUST, IF THE INCOME FROM
CAPITAL GAINS IS ADDED TO CORPUS FOR THE BENEFIT OF POTENTIAL
REMAINDERMEN, EACH OF WHOM IS PROCEEDS OF WHAT THEREOF ARE ADDED TO
THE PRINCIPAL OF THE TRUST, AND IF ALL THE REMAINDERMEN IN BEING ARE:

(I)      A NONRESIDENT NONRESIDENTS DURING THE ENTIRE
TAXABLE YEAR; OR

(II)     A CORPORATION CORPORATIONS NOT DOING BUSINESS IN THE
STATE; OR.

(III) IN BEING.

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