LAWRENCE J. HOGAN, JR., Governor Ch. 632
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Chapter 632
(House Bill 1049)
AN ACT concerning
Maryland Trust Act – Trustee Liability – Release by Interested Parties
FOR the purpose of altering a provision of law providing that a trustee seeking a release of
the trustee from liability for administration of a trust send a certain interested party
a certain report; providing for the submission of a statement by an interested party
to a trust under the Maryland Trust Act that the interested party does not object to
the release from liability of a trustee for administration of the trust under certain
circumstances; authorizing the distribution of trust property when all interested
parties submit a certain statement; and generally relating to the Maryland Trust
Act and trustee liability.
BY repealing and reenacting, with amendments,
Article – Estates and Trusts
Section 14.5–907
Annotated Code of Maryland
(2017 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Estates and Trusts
14.5–907.
(a) In this section, “interested party” means a beneficiary, representative of a
beneficiary, co–trustee, successor trustee, or any other person having an interest in or
authority over a trust.
(b) A trustee is not liable to a beneficiary for breach of trust if the beneficiary
consented to the conduct constituting the breach, released the trustee from liability for the
breach, or ratified the transaction constituting the breach, unless:
(1) The consent, release, or ratification of the beneficiary was induced by
improper conduct of the trustee; or
(2) At the time of the consent, release, or ratification, the beneficiary did
not know of the rights of the beneficiary or of the material facts relating to the breach.
(c) (1) When a trust terminates in accordance with the terms of the trust or
Subtitle 4 of this title, or on the removal or resignation of a trustee in accordance with the
terms of the trust or Subtitle 7 of this title, a trustee may elect to follow the procedures set Ch. 632 2022 LAWS OF MARYLAND
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forth in this subsection concerning the release of the trustee from liability for the
administration of the trust.
(2) A trustee seeking a release of the trustee from liability under this
subsection shall send to [each] THE interested party FROM WHOM THE TRUSTE E IS
SEEKING THE RELEASE , by first–class[,] AND certified mail, return receipt requested, a
report that:
(i) Informs the interested party that the trust is terminating or that
the trustee has resigned or has been removed;
(ii) Provides the interested party:
1. An accounting of the trust, such as account statements, for
the immediately preceding 5 years;
2. An estimate of any trust property or interests reasonably
anticipated but not yet received or disbursed; and
3. The amount of any fees, including trustee fees, remaining
to be paid; and
(iii) Notifies the interested party that:
1. The interested party may submit WITHIN 120 DAYS
AFTER THE TRUSTEE MA ILED THE REPORT :
A. A written objection to the trustee regarding the trustee’s
administration of the trust [within 120 days after the trustee mailed the report]; OR
B. A WRITTEN STATEMENT TO THE TRUSTEE THAT THE
INTERESTED PARTY DOE S NOT OBJECT;
2. If the interested party does not submit a written objection
to the trustee within 120 days after the trustee mailed the report, the interested party shall
be deemed to have released the trustee and consented to and ratified all actions of the
trustee; and
3. The trustee is unaware of any undisclosed information
that could give rise to a claim by an interested party.
(d) [If an interested party does not submit a written objection to the trustee
within 120 days after the trustee mailed the report, the] AN interested party TO WHOM A
REPORT WAS SENT UNDE R SUBSECTION (C)(2) OF THIS SECTION shall be deemed to
have released the trustee and consented to and ratified all actions of the trustee IF, WITHIN LAWRENCE J. HOGAN, JR., Governor Ch. 632
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120 DAYS AFTER THE TRUSTEE MA ILED THE REPORT , THE INTERESTED PARTY :
(1) DOES NOT SUBMIT A WRI TTEN OBJECTION TO TH E TRUSTEE; OR
(2) SUBMITS A WRITTEN STA TEMENT TO THE TRUSTEE THAT THE
INTERESTED PARTY DOE S NOT OBJECT.
(e) (1) [If] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF no
interested party TO WHOM A REPORT WAS SENT UNDER SUBSECTIO N (C)(2) OF THIS
SECTION submits a written objection to the trustee within 120 days after the trustee
mailed the report, the trustee shall distribute the trust property to the appropriate
successors in interest within a reasonable period of time.
(2) IF EACH INTERESTED PARTY TO WHOM A REPORT WAS SENT
UNDER SUBSECTION (C)(2) OF THIS SECTION PROVIDES A WRITTEN STATEMENT IN
ACCORDANCE WITH SUBSECTION (D)(2) OF THIS SECTION , THE TRUSTEE MAY
DISTRIBUTE THE TRUST PROPERTY TO THE APPR OPRIATE SUCCESSORS I N
INTEREST WITHIN THE 120–DAY PERIOD AFTER THE MAILING OF THE REPORT .
(f) If an interested party TO WHOM A REPORT WAS SENT UNDER SUBSECTIO N
(C)(2) OF THIS SECTION submits a written objection to the trustee within 120 days after
the trustee mailed the report, the objection may be:
(1) Submitted to the court, with notice to all interested parties TO WHOM
A REPORT WAS SENT UN DER SUBSECTION (C)(2) OF THIS SECTION , to commence a
proceeding for resolution of the objection; or
(2) Resolved by the agreement of all interested parties TO WHOM A
REPORT WAS SENT UNDE R SUBSECTION (C)(2) OF THIS SECTION and the trustee, in
accordance with applicable laws.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.