EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0878*
SENATE BILL 878
N2 2lr2785
CF HB 1049
By: Senator Waldstreicher
Introduced and read first time: February 7, 2022
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: March 4, 2022
CHAPTER ______
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 2 SENATE BILL 878
beneficiary, co–trustee, successor trustee, or any other person having an interest in or 1
authority over a trust. 2
(b) A trustee is not liable to a beneficiary for breach of trust if the beneficiary 3
consented to the conduct constituting the breach, released the trustee from liability for the 4
breach, or ratified the transaction constituting the breach, unless: 5
(1) The consent, release, or ratification of the beneficiary was induced by 6
improper conduct of the trustee; or 7
(2) At the time of the consent, release, or ratification, the beneficiary did 8
not know of the rights of the beneficiary or of the material facts relating to the breach. 9
(c) (1) When a trust terminates in accordance with the terms of the trust or 10
Subtitle 4 of this title, or on the removal or resignation of a trustee in accordance with the 11
terms of the trust or Subtitle 7 of this title, a trustee may elect to follow the procedures set 12
forth in this subsection concerning the release of the trustee from liability for the 13
administration of the trust. 14
(2) A trustee seeking a release of the trustee from liability under this 15
subsection shall send to [each] THE interested party FROM WHOM THE TRUSTE E IS 16
SEEKING THE RELEASE , by first–class[,] AND certified mail, return receipt requested, a 17
report that: 18
(i) Informs the interested party that the trust is terminating or that 19
the trustee has resigned or has been removed; 20
(ii) Provides the interested party: 21
1. An accounting of the trust, such as account statements, for 22
the immediately preceding 5 years; 23
2. An estimate of any trust property or interests reasonably 24
anticipated but not yet received or disbursed; and 25
3. The amount of any fees, including trustee fees, remaining 26
to be paid; and 27
(iii) Notifies the interested party that: 28
1. The interested party may submit WITHIN 120 DAYS 29
AFTER THE TRUSTEE MA ILED THE REPORT : 30
A. A written objection to the trustee regarding the trustee’s 31
administration of the trust [within 120 days after the trustee mailed the report]; OR 32
SENATE BILL 878 3
B. A WRITTEN STATEMENT TO THE TRUSTEE THAT THE 1
INTERESTED PARTY DOE S NOT OBJECT; 2
2. If the interested party does not submit a written objection 3
to the trustee within 120 days after the trustee mailed the report, the interested party shall 4
be deemed to have released the trustee and consented to and ratified all actions of the 5
trustee; and 6
3. The trustee is unaware of any undisclosed information 7
that could give rise to a claim by an interested party. 8
(d) [If an interested party does not submit a written objection to the trustee 9
within 120 days after the trustee mailed the report, the] AN interested party TO WHOM A 10
REPORT WAS SENT UNDE R SUBSECTION (C)(2) OF THIS SECTION shall be deemed to 11
have released the trustee and consented to and ratified all actions of the trustee IF, WITHIN 12
120 DAYS AFTER THE TRUST EE MAILED THE REPORT , THE INTERESTED PARTY : 13
(1) DOES NOT SUBMIT A WRI TTEN OBJECTION TO TH E TRUSTEE; OR 14
(2) SUBMITS A WRITTEN STA TEMENT TO THE TRUSTE E THAT THE 15
INTERESTED PARTY DOE S NOT OBJECT. 16
(e) (1) [If] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF no 17
interested party TO WHOM A REPORT WAS SENT UNDER SUBSECTIO N (C)(2) OF THIS 18
SECTION submits a written objection to the trustee within 120 days after the trustee 19
mailed the report, the trustee shall distribute the trust property to the appropriate 20
successors in interest within a reasonable period of time. 21
(2) IF EACH INTERESTED PA RTY TO WHOM A REPORT WAS SENT 22
UNDER SUBSECTION (C)(2) OF THIS SECTION PROVIDES A WRITTEN S TATEMENT IN 23
ACCORDANCE WITH SUBS ECTION (D)(2) OF THIS SECTION , THE TRUSTEE MAY 24
DISTRIBUTE THE TRUST PROPERTY TO THE APPR OPRIATE SUCCESSORS I N 25
INTEREST WITHIN THE 120–DAY PERIOD AFTER THE MAILING OF THE REPOR T. 26
(f) If an interested party TO WHOM A REPORT WAS SENT UNDER SUBSECTIO N 27
(C)(2) OF THIS SECTION submits a written objection to the trustee within 120 days after 28
the trustee mailed the report, the objection may be: 29
(1) Submitted to the court, with notice to all interested parties TO WHOM 30
A REPORT WAS SENT UN DER SUBSECTION (C)(2) OF THIS SECTION , to commence a 31
proceeding for resolution of the objection; or 32
(2) Resolved by the agreement of all interested parties TO WHOM A 33
REPORT WAS SENT UNDE R SUBSECTION (C)(2) OF THIS SECTION and the trustee, in 34
accordance with applicable laws. 35 4 SENATE BILL 878
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2022. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.