EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0878*
SENATE BILL 878
N2 2lr2785
CF HB 1049
By: Senator Waldstreicher
Introduced and read first time: February 7, 2022
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Maryland Trust Act – Trustee Liability – Release by Interested Parties 2
FOR the purpose of altering a provision of law providing that a trustee seeking a release of 3
the trustee from liability for administration of a trust send a certain interested party 4
a certain report; providing for the submission of a statement by an interested party 5
to a trust under the Maryland Trust Act that the interested party does not object to 6
the release from liability of a trustee for administration of the trust under certain 7
circumstances; authorizing the distribution of trust property when all interested 8
parties submit a certain statement; and generally relating to the Maryland Trust 9
Act and trustee liability. 10
BY repealing and reenacting, with amendments, 11
Article – Estates and Trusts 12
Section 14.5–907 13
Annotated Code of Maryland 14
(2017 Replacement Volume and 2021 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Estates and Trusts 18
14.5–907. 19
(a) In this section, “interested party” means a beneficiary, representative of a 20
beneficiary, co–trustee, successor trustee, or any other person having an interest in or 21
authority over a trust. 22
(b) A trustee is not liable to a beneficiary for breach of trust if the beneficiary 23
consented to the conduct constituting the breach, released the trustee from liability for the 24
breach, or ratified the transaction constituting the breach, unless: 25 2 SENATE BILL 878
(1) The consent, release, or ratification of the beneficiary was induced by 1
improper conduct of the trustee; or 2
(2) At the time of the consent, release, or ratification, the beneficiary did 3
not know of the rights of the beneficiary or of the material facts relating to the breach. 4
(c) (1) When a trust terminates in accordance with the terms of the trust or 5
Subtitle 4 of this title, or on the removal or resignation of a trustee in accordance with the 6
terms of the trust or Subtitle 7 of this title, a trustee may elect to follow the procedures set 7
forth in this subsection concerning the release of the trustee from liability for the 8
administration of the trust. 9
(2) A trustee seeking a release of the trustee from liability under this 10
subsection shall send to [each] THE interested party FROM WHOM THE TRUSTEE IS 11
SEEKING THE RELEASE , by first–class[,] AND certified mail, return receipt requested, a 12
report that: 13
(i) Informs the interested party that the trust is terminating or that 14
the trustee has resigned or has been removed; 15
(ii) Provides the interested party: 16
1. An accounting of the trust, such as account statements, for 17
the immediately preceding 5 years; 18
2. An estimate of any trust property or interests reasonably 19
anticipated but not yet received or disbursed; and 20
3. The amount of any fees, including trustee fees, remaining 21
to be paid; and 22
(iii) Notifies the interested party that: 23
1. The interested party may submit WITHIN 120 DAYS 24
AFTER THE TRUSTEE MA ILED THE REPORT : 25
A. A written objection to the trustee regarding the trustee’s 26
administration of the trust [within 120 days after the trustee mailed the report]; OR 27
B. A WRITTEN STATEMENT TO THE TRUSTEE THAT THE 28
INTERESTED PARTY DOE S NOT OBJECT; 29
2. If the interested party does not submit a written objection 30
to the trustee within 120 days after the trustee mailed the report, the interested party shall 31
be deemed to have released the trustee and consented to and ratified all actions of the 32 SENATE BILL 878 3
trustee; and 1
3. The trustee is unaware of any undisclosed information 2
that could give rise to a claim by an interested party. 3
(d) [If an interested party does not submit a written objection to the trustee 4
within 120 days after the trustee mailed the report, the] AN interested party TO WHOM A 5
REPORT WAS SENT U NDER SUBSECTION (C)(2) OF THIS SECTION shall be deemed to 6
have released the trustee and consented to and ratified all actions of the trustee IF, WITHIN 7
120 DAYS AFTER THE TRUST EE MAILED THE REPORT , THE INTERESTED PARTY : 8
(1) DOES NOT SUBMIT A WRI TTEN OBJECTION TO THE TRUSTE E; OR 9
(2) SUBMITS A WRITTEN STA TEMENT TO THE TRUSTE E THAT THE 10
INTERESTED PARTY DOE S NOT OBJECT. 11
(e) (1) [If] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF no 12
interested party TO WHOM A REPORT WAS SENT UNDER SUBSECTIO N (C)(2) OF THIS 13
SECTION submits a written objection to the trustee within 120 days after the trustee 14
mailed the report, the trustee shall distribute the trust property to the appropriate 15
successors in interest within a reasonable period of time. 16
(2) IF EACH INTERESTED PARTY TO WHOM A REPORT WAS SENT 17
UNDER SUBSECTION (C)(2) OF THIS SECTION PROVIDES A WRITTEN S TATEMENT IN 18
ACCORDANCE WITH SUBS ECTION (D)(2) OF THIS SECTION , THE TRUSTEE MAY 19
DISTRIBUTE THE TRUST PROPERTY TO THE APPR OPRIATE SUCCESSORS I N 20
INTEREST WITH IN THE 120–DAY PERIOD AFTER THE MAILING OF THE REPOR T. 21
(f) If an interested party TO WHOM A REPORT WAS SENT UNDER SUBSECTIO N 22
(C)(2) OF THIS SECTION submits a written objection to the trustee within 120 days after 23
the trustee mailed the report, the objection may be: 24
(1) Submitted to the court, with notice to all interested parties TO WHOM 25
A REPORT WAS SENT UN DER SUBSECTION (C)(2) OF THIS SECTION , to commence a 26
proceeding for resolution of the objection; or 27
(2) Resolved by the agreement of all interested parties TO WHOM A 28
REPORT WAS SENT UNDE R SUBSECTION (C)(2) OF THIS SECTION and the trustee, in 29
accordance with applicable laws. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2022. 32