Md. R. Guard. & Fid. 10-705

As amended through October 15, 2024

Rule 10-705 - Restricted Accounts

(a) Petition for Restricted Accounts. When a fiduciary estate consists entirely of cash in an amount not exceeding $200,000, a fiduciary may petition the court for an order authorizing the deposit of cash in a financial institution that is federally insured or is regulated by the Commissioner of Financial Regulation in a single restricted account titled substantially in the following form: "A.B., (fiduciary), withdrawals subject to the order of the Circuit Court for __________ County.

(b) Orders Authorizing Withdrawals. The court may require a separate order prior to each withdrawal. The court may enter a continuing order authorizing withdrawals up to a specified amount. The continuing order may be for a definite period of time, not to exceed one year, and may on petition be renewed annually.

(c) Proof of Restricted Account. The fiduciary shall promptly provide proof of the opening of a restricted account to the trust clerk, who shall make note of it in the file.

(d) When Accounting not Required. If all of the assets of a fiduciary estate are deposited in a single restricted account in an amount not exceeding $10,000, no annual accounting is required unless the court orders otherwise.

(e) Cash Exceeding $200,000. If the amount of cash belonging to a minor or disabled person exceeds $200,000, any excess amount shall be deposited into additional restricted accounts.

(f) Aggregate Amount. The aggregate amount deposited in any financial institution may not exceed $200,000.

(g) Acceptable Financial Institutions. The deposits may be made into any type of account, including a certificate of deposit, in a financial institution that accepts deposits and is federally insured or is regulated by the Commissioner of Financial Regulation.

Md. R. Guard. & Fid. 10-705

This Rule is derived as follows:

Section (a) is derived from former Rule V75 a and b.

Section (b) is derived from former Rule V75 c.

Section (c) is derived from former Rule V75 d.

Section (d) is derived from former Rule V74 c 2(e).

Section (e) is new.

Section (f) is new.

Section (g) is new.

Adopted June 5, 1996, eff. 1/1/1997. Amended Sept. 17, 2015, eff. 1/1/2016.

HISTORICAL NOTES

2015 Orders

The September 17, 2015, order, changed a certain monetary amount in and added language to section (a), added new sections (e), (f), and (g) pertaining to certain deposits of cash belonging to a minor or disabled person who is the subject of a guardianship, added a certain cross reference at the end of the Rule, and made stylistic changes.

Derivation:

Maryland Rule of Procedure V74, revised eff. Feb. 2, 1970, amended eff. July 1, 1974, related to inventory and accounting, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure V75, revised eff. Feb. 2, 1970, amended eff. July 1, 1974, related to fiduciary estates not exceeding $10,000, rescinded June 5, 1996, eff. Jan. 1, 1997.

For accounting requirements, see Rule 10-706. Code, Estates and Trusts Article, § 13-209.1.