Md. Code Regs. 22.01.07.03

Current through Register Vol. 51, No. 22, November 1, 2024

Section 22.01.07.03 - Designation of Minor Beneficiary

A. This regulation applies only if a designated beneficiary is not 18 years old or older at the time of payment of the survivor benefit.

B. The Retirement Agency shall pay the survivor benefit for the benefit of the designated beneficiary to the guardian of the property of the minor beneficiary who is appointed by a court in accordance with Estates and Trusts Article, Title 13, Subtitle 2, Annotated Code of Maryland.

C. If a guardian of the property has not been appointed by a court in accordance with the Estates and Trusts Article, Title 13, Subtitle 2, Annotated Code of Maryland, the Retirement Agency shall pay the survivor benefit for the benefit of the designated beneficiary in the following order:

(1) If the individual named a custodian under the Maryland Uniform Transfers to Minors Act, Estates and Trusts Article, Title 13, Subtitle 3, Annotated Code of Maryland, to receive the survivor benefit for each minor beneficiary on the designation of beneficiary form, to the named custodian for the designated minor;

(2) If the individual named a custodian or trustee to hold property for the benefit of the minor beneficiary under a will or trust on the designation of beneficiary form, to the named custodian or trustee;

(3) If the individual did not name a custodian or trustee as provided in §C(1) or (2) of this regulation, to an adult as custodian for the benefit of the minor beneficiary under the Maryland Uniform Transfers to Minors Act, Estates and Trusts Article, Title 13, Subtitle 3, Annotated Code of Maryland, if the:

(a) Survivor benefit payable to the minor beneficiary is less than $10,000; and

(b) Executive Director considers a transfer to an adult as custodian for the benefit of the minor beneficiary under the Maryland Uniform Transfers to Minors Act to be in the best interest of the minor; or

(4) If the criteria specified in §C(3)(a) or (b) of this regulation are not satisfied, the Retirement Agency shall pay the survivor benefit only to a guardian of the property of the minor beneficiary who is appointed by a court in accordance with the Estates and Trusts Article, Title 13, Subtitle 2, Annotated Code of Maryland.

Md. Code Regs. 22.01.07.03

Regulation .03 amended effective 46:3 Md. R. 106, eff. 2/11/2019