An Act To Make Technical Amendments to the Maine Uniform Trust Code
Maine Legislature, Session 122, LD 1551
Committee: Judiciary
Sponsors: MILLS
Amends: 18-A MRSA §5, 18-B MRSA §103, 8 MRSA §103, 8 MRSA §105, 8 MRSA §110, 8 MRSA §301, 18-B MRSA §501, 18-B MRSA §504, 18-B MRSA §603, 8 MRSA §704, 8 MRSA §802, 8 MRSA §813, 8 MRSA §814

Legislative Document 
No. 1551 
S.P. 538 
In Senate, April 6, 2005 
An Act To Make Technical Amendments to the Maine Uniform 
Trust Code 
(EMERGENCY) 
Reference to the Committee on Judiciary suggested and ordered printed. 
Presented by Senator MILLS of Somerset. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Emergency preamble. Whereas, acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the Maine Uniform Trust Code, enacted by Public Law 
2003, chapter 618, Part A, takes effect July 1, 200S; and 
Whereas, the amendments in this legislation to the Maine 
Uniform Trust Code must also become effective on July 1, 2005, 
because allowing the amendments to become effective 90 days after 
the end of the legislative session would cause confusion and 
uncertainty for Maine citizens and taxpayers; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 18-A MRSA §5-508, sub-§(g), as amended by PL 1999, c. 
66, §1, is further amended to read: 
(g) 
The requirements of subsections (b), (c) and (d) do not 
render ineffective a durable financial power of attorney validly 
executed prior to September 19, 1997 or a durable financial power 
of attorney executed prior to December 31, 1998 in accordance 
with this section as in effect on September 19, 
1997. 
The 
requirements 
of 
subsection 
(d) 
do 
not 
render 
ineffective 
a 
durable power of attorney validly executed prior to July 1, 200S 
in accordance with this section. 
Sec. 2. 18-B MRSA §103, sub-§I-A is enacted to read: 
I-A. 
Ascertainable 
st(lg.dard. 
"Ascertainable 
stand~ 
means 
an 
ascertainable 
standard relating to 
an 
individual's 
health. education. support or maintenance within the meaning of 
Section 
2041(b)(I)(A) 
or 
Section 
2S14(c)(1) 
of 
the 
federal 
Internal Revenue Code of 1986. as in effect on July 1. 200S. 
Sec. 3. 18-B MRSA §103, sub-§10, as enacted by PL 2003, c. 
618, Pt. A, §1 and affected by §2, is amended to read: 
10. 
Power of withdrawal. 
"Powe r 
f 
wi thdr awal " 
me ans a 
presently exercisable general power of appointment other than a 
power 
exercisable 
by 
a 
trustee 
that 
is 
limited 
by 
an 
ascertainable standard. or exercisable by another person only 
Page l-LR1146(1) 
upon consent of the trustee or 
a 
person holding 
an adverse 
interest. 
Sec. 4. 18-8 MRSA §103, sub-§12, as enacted by PL 2003, c. 
618, Pt. A, §l and affected by §2, is amended to read: 
12. 
Qualified beneficiary. 
living 
beneficiary 
who 
on 
qualification is determined: 
"Qualified beneficiary" means a 
the 
date 
the 
beneficiary's 
A. 
Is a distributee or permissible distributee of trust 
income or principal; 
B. 
Would be 
a distributee or permissible distributee of 
trust 
income 
or 
principal 
if 
the 
interests 
of 
the 
distributees described in paragraph A terminated on that 
date, but the termination of those interests would not cause 
the trust to terminate; or 
C. 
Would be 
a distributee or permissible distributee of 
trust income or principal if the trust terminated on that 
date. 
"Qualified beneficiary" does not include a contingent distributee 
or 
a 
contingent 
permissible 
distributee 
of 
trust 
income 
or 
principal whose interest in the trust is not reasonably expected 
to vest. 
Sec. 5. 18-8 MRSA §105, sub-§2. ,," and I, as enacted by PL 
2003, c. 618, Pt. A, §l and affected by §2, are ~nended to read: 
H. 
~he Subject to subsection 3, the duty under section 813, 
subsection 
2, 
paragraphs 
Band 
C 
to 
notify 
qualified 
beneficiaries of an irrevocable trust who have attained 25 
years of age of the existence of the trust, of the identity 
of 
the trustee and of their right to request trustee's 
reports; 
I. 
~he Subject to su~~~_tion 3, the duty under section 813, 
subsection 
to 
respond 
to 
the 
request of 
a 
qualified 
beneficiary of an irrevocable trust for trustee's reports 
and 
other 
information 
reasonably 
related 
to 
the 
administration of a trust; 
Sec. 6. 18-8 MRSA §105, sub-§3 is enacted to read: 
3. 
W~iver or 
~dific~ion. 
The 
settlQr. 
in the 
trYst 
j._~Htt r ume n t 
Qr in 
allQthe~ writing lleli:llerell tQ tbe trystee. may 
waiv~ Qr 
mQllify the lluties 
Qf 
a 
tryste~ ynller 
set:tiQn 1313. 
subsection 1 or 2 to give notice, 
information and reports to 
qualified beneficiaries by: 
A. 
Waiving or lTlo!iiiyin9.-sJ,lch duties as to ali--SL!J..aUt.ieq 
beneficiaries except the settlor's surviving SPQuse during 
~e lifetime of the settlor or the lifetime of the settlor's 
surviving spouse; and 
1;!.------l?ll.ignat;,ing a 
l?e~JL 
.. 9...L.J2ersons, any of whom...mc;u'--.Qr may 
not be a beneficiary, to act in good faith to protect the 
interests 
of 
the 
qualified 
beneficiaries 
who 
are 
not 
receiving notice, information or reports and to receive any 
nillce, information or repQJ;J;.JL.J.equired undeL. section_a:L~L 
subsection 
or 
in lieu 
of 
providing 
such 
notice, 
information or reports to the qualified beneficiaries. 
The 
person or persons designated under this paragraph are deemed 
to be 
re~s.entative~f the qualified beneficiarie..Q_ not 
receiving notice, information or reports for the purposes of 
the time limitation for a beneficiary to commence an action 
against the trustee for breach of trust as provided in 
section 1005, subsection 1. 
REVISED MAINE COMMENT Sl05 
Subsection 2, paragraph H has been changed by adding the 
word "qualified" before "beneficiary". 
The change is consistent 
with section 813, 
subsection 1, 
which, 
as 
adopted in Maine, 
requires that a trustee respond to a "qualified beneficiary's" 
request for trustee's reports and other information reasonably 
related to the administration of a trust. 
Notwithstanding the 
trustee's duty under section 813, subsection 2, paragraphs Band 
C 
to provide qualified beneficiaries with notice 
of certain 
information about the trust, under subsection 105, subsection 2, 
paragraph H a settlor may, by the terms of the trust, prohibit 
the trustee from notifying a qualified beneficiary who has not 
yet attained 25 years of age, of the existence of the trust, of 
the identity of the trustee and of the qualified beneficiary's 
right to request trustee reports. 
However, 
once 
a 
qualified 
beneficiary attains 25 years of age, the only way the qualified 
beneficiary may be "kept in the dark" as to the existence of the 
trust is for the settlor to name a person or persons to receive 
trustee 
reports 
on 
behalf 
of 
the 
qualified 
beneficiary 
as 
provided in subsection 3. The "protector" named in subsection 3 
must act in good faith to protect the interests of the qualified 
beneficiary on whose behalf the protector is receiving trust 
information. 
Subsection 
is not 
a 
uniform provision of 
the 
Uniform Trust Code. 
Maine 
added subsection 3 
as 
a 
means 
to 
provide settlors with an option to prevent disclosure of the 
existence of the trust and details of the trust administration to 
qualified beneficiaries. 
A settlor has the power to prohibit the 
disclosure of the existence of the trust and details of the trust 
administration to all non-qualified beneficiaries without the 
need to name a third person to receive such information on behalf 
of 
the beneficiaries. 
Note 
that 
a 
settlor may 
not 
name 
a 
protector to receive notice, information or reports in lieu of 
providing the notice, 
information or reports directly to the 
settlor's surviving spouse. 
The UTC has built into its default provisions a hierarchy of 
rights 
relating 
to 
providing 
various 
beneficiaries 
with 
information about a trust. The default provisions will govern 
unless the settlor chooses to modify them by the terms of the 
trust document: 
i. 
Some 
classes 
of 
beneficiaries 
have 
a 
right 
to 
information whether they request it or not (e.g., 
under 
section 
813, 
subsection 
distr ibutees 
or 
permissible 
distributees of trust income or principal have a right to 
receive annual reports without request). 
ii. 
Other beneficiaries have a 
told of their right to request 
section 
813, 
subsection 
2, 
beneficiaries have to be informed 
a copy of the trust instrument and 
right to be affirmatively 
information (e.g., 
under 
paragraph 
C 
qualified 
of their right to request 
of trustee's reports). 
iii. 
Nonqualified beneficiaries have a right to obtain a 
copy of the trust instrument only if they request a copy, 
but a trustee is under no affirmative obligation to inform 
them of the existence of the trust or of their right to 
request a copy: the non-qualified beneficiaries are on their 
own to learn of the existence of the trust (see section 813, 
subsection 2, paragraph A). 
Section 105 permits the settlor, by the terms of the trust, 
to alter the beneficiaries' rights and trustee's duties under 
section 813, except as specified in section 105, subsection 2, 
paragraphs H and I. 
Sec. 7. 18-8 MRSA §110, as enacted by PL 2003, c. 618, Pt. A, 
§1 and affected by §2, is amended to read: 
§IIO. Others treated as qualified beneficiaries 
1. 
Charitable organization or person to enforce trust. 
A 
charitable 
organization 
expressly 
designated 
to 
receive 
distributions under the terms of a charitable trust ElF--a--p&!'SElR 
appEl~R~eQ-~9-eBf9~€e-~-~~~~~~~~~~-~~~~~~-&&-aR~~a*-ElF 
aRetRe~-~~~~~~~r~-as-~~~~-H~-seetieR-4~~-~~-4G9 
has the rights of a qualified beneficiary under this CodeT if the 
charitable 
organization, 
on 
the 
date 
the 
charitable 
organization's qualification is being determined: 
A. 
Is a distributee or permissible distributee of trust 
income or principal: 
B. 
Would be a distrilLutee or a perJTlissible distributee of 
trust 
income 
or 
principal 
upon 
the 
termination of 
the 
interests of other distributees or permissible distributees 
then receiving Qr eligible to receive distributions; or 
h 
Would 
1;1e 
a 
distri~e or permissible distributee of 
trust income or principal on that date. 
A charitable organization whose 
interest in the trust as 
~ 
~tingent distribytee of 
th!L....t_:r--Y~LJ._:QC.Qffi~r principal is not 
reasonably expected to vest does 
not 
have 
the 
rights 
of 
a 
qualified beneficiary. 
J-A~~~_~.Q!l_a-ppointe(L.t_~eJlfo.J::~~t_t...~\l_st. 
A pe.xson appoi~ted 
tQ_enforce a trust created for the care of an animal or another 
noncharitable purpose as provided in section 408 or 409 has the 
rights of a qyalified beneficiary under this Code. 
2. 
Attorney General. 
The Attorney General has the rights 
e€-~-~~if~-&~R~~ieia~y provided in Title 5. section 194 with 
respect to 
a 
charitable trust having its principal place of 
administration in this State, but may not be treated as and does 
not have the rights of a qualified beneficiary. 
REVISED MAINE COMMENT SIlO 
Maine has deleted the Uniform Code's subsection (a), which 
stated: 
(a) 
Whenever notice to qualified beneficiaries of a trust 
is required under the UTC, the trustee must also give notice 
to any other beneficiary who has sent the trustee a request 
for notice. 
Uniform Code subsections (b) and (c) have been renumbered 1 and 2 
respectively in the Maine version. 
The National UTC Conference 
Comments, referring to subsections (a), (b) and (c), refer to the 
Uniform Code subsections before they have been re-lettered in the 
Maine version and should therefore be read accordingly. 
Maine has also deleted the Uniform Code's subsection (d) 
that 
gave 
the 
Attorney 
General 
the 
rights 
of 
a 
qualified 
beneficiary 
with 
respect 
to 
a 
charitable 
trust 
having 
its 
principal place of administration in Maine. 
In its place, Maine 
has added 
a 
new subsection 3 which acknowledges the Attorney 
General's 
existing enforcement 
role 
under 
the 
Maine 
Revised 
Statutes, Title 5, section 194. 
The purpose of this section is 
to expand the class of persons who are treated as a "qualified 
beneficiary" as defined in UTC section 103, subsection 13. 
The 
qualified beneficiary concept of the UTC 
is used to narrowly 
define the class of beneficiaries who are entitled to notice of 
certain matters 
related to the trust. 
See 
the National 
UTC 
Conference Comments under this section for further explanation. 
The 
notice required to be given to "qualified" beneficiaries 
under the UTC should not be confused with the notice requirements 
of section 1-401 of Maine's Probate Code, which section requires 
that 
notice 
of 
a 
proceeding 
or 
hearing 
be 
given 
to 
any 
"interested person". 
The term "interested person" is a defined 
term under section 1-201, subsection (20) of the Maine Probate 
Code, and defines a more expansive group of persons than does the 
term "qualified beneficiary". The provisions of section 1-401 of 
Maine's Probate Code are limited to notice of a "proceeding or 
hearing"; i.e., a matter involving the court. 
Note that the term 
"proceeding" 
is defined in section 1-201, 
subsection 
(32) 
of 
Maine's Probate Code as "including any civil action in any court 
of competent jurisdiction." 
Sec. 8. 18-8 MRSA §301, sub-§4 is enacted to read: 
4. 
Limitation on representation Qy settlor. 
A settlor may 
not represent and bind a beneficiary under this chapter with 
.I~spect to termination or modification of a trust under section 
411, subsection 1. 
Sec. 9. 18-8 MRS A §4U, sub-§I, as enacted by PL 2003, c. 618, 
Pt. A, §1 and affected by §2, is amended to read: 
1. 
Consent 
of 
settlor 
and 
all 
beneficiaries. 
---A 
R9ReRa~~taB*e--~~~~~-~~~--ffiay--&e-~i£-~-~--te~ffi~RateQ 
~p9R-~~~~-~he-~~~--aRQ-~~--&ea&~~~~a~~&r-e¥e~-~-tRe 
ffi9Q~~~eat~eR--e~--te~ffi~Rat~eR--~s--~ReeRs~steRt--witR--a--ffiate~ia* 
p~~pese-~~-~~-~F~S~T 
If the settlor and all 
beneficiari~ 
consent to the modification or termination of an irrevocable 
trust, the court shall enter an order approving the modification 
or 
termination 
even 
if 
the 
modifi~ation or 
termination 
is 
inconsistent with a material purpose of the trust, if the court 
tJ.n_cls_t.hat 
the 
rnQdi.fj.c~tion or 
t~u·1TtiJlation 
i,s __ in 
the 
bel?t 
interests of the beneficiaries. 
A settlor's power to consent to 
a trust's modification or termination may be exercised by an 
agent under a 
power of attorney only to the extent expressly 
authorized 
by the power of attorney or the terms of the trust; by the 
settlor's conservator with the approval of the court supervising 
the conservatorship if an agent is not so authorized; or by the 
settlor's guardian with the approval of the court supervising the 
guardianship if an agent is not so authorized and a conservator 
has not been appointed. 
Sec. 10. 18-B MRSA §501, as enacted by PL 2003, c. 618, Pt. 
A, §l and affected by §2, is amended to read: 
§501. Rights of beneficiary's creditor or assignee 
To the extent a beneficiary's interest is not protected by a 
spendthrift prov1s1on, 
the court may authorize 
a 
creditor or 
assignee of the beneficiary to reach the beneficiary's interest 
by attachment of present or future distributions to 
e!'--f~--t:A.e 
Beae~.i,.&-ef the benef iciary 
e!'-~·he·{"--FIIeaas. The court may limit 
the 
award 
to 
such 
relief 
as 
is 
appropriate 
under 
the 
circumstances. 
Sec. 11. 18-B MRSA §504, sub-§2, as enacted by PL 2003, c. 
618, Pt. A, §l and affected by §2, is amended to read: 
2. 
Right of beneficiary not limited. 
This section does not 
limit 
the 
right 
of 
a 
beneficiary 
to 
maintain 
a 
judicial 
proceeding against a trustee for aa--abu&e--G-.E--El:is9!'et::iea liilure 
~]I:~rcise a dlicretionary power in accordance with the terms 
and purposes of 
the trust or 
fQ£ failure 
to 
comply with 
a 
standard for distribution. 
Sec. 12. 18-B MRSA §504. sub-§3 is enacted to read: 
3. 
Creditor limited. 
A creditor may not reach the interest 
of a beneficiary who is also a trustee, or otherwise compel a 
distribution, 
if the 
trustee's discretion is 
limited 
by 
an 
~certainable standard. 
MAINE COMMENT 
Maine did not adopt the proposed subsections (a) and (c) of 
section 504 because, among other things, of a desire to preserve 
common law distinction between discretionary and support trusts. 
Sec. 13. 18-B MRSA §603, sub-§l, as enacted by PL 2003, c. 
618, Pt. A, §l and affected by §2, is amended to read: 
1. 
Revocable trust. 
While a trust is revocable anEl--t:ae 
set:t:*e!'--ha6---£-apa€-i-t.'i'---t.-&--~--&ae.--t:!'1:ist:, 
rights 
of 
the 
C 
(. 
" 
beneficiaries are subject to the control of, and the duties of 
the trustee are owed exclusively to, the settlor. 
Sec. 14. 18-8 MRSA §704, sub-§4, ,8, as enacted by PL 2003, c. 
618, Pt. A, §l and affected by §2, is amended to read: 
B. 
By 
a 
person appointed by unanimous agreement of the 
charitable organizations 
expressly designated 
to 
receive 
distributions under the terms of the trust ,if--t-he--A&&9FRey 
GeReFa*-esReHFs-,iR-the-appe,iRtmeRt; or 
Sec. 15. 18-8 MRSA §802, sub-§§4 and 6, as enacted by PL 2003, 
c. 618, Pt. A, §l and affected by §2, are amended to read: 
4. 
Transaction 
between 
trustee 
and 
beneficiary. 
A 
transaction between a trustee and a beneficiary that does not 
concern trust property but that occurs during the existence of 
the trust or while the trustee retains significant influence over 
the beneficiary and from which the trustee obtains an advantage 
beyond the normal commercial advantage for such a transaction is 
voidable by the beneficiary unless the trustee establishes that 
the transaction was 
fair to 
the beneficiary. 
A transfer or 
obligation is not voidable under this section against a person 
who took property from the tru~te~in good faith for a reasonably 
equivalent value or against any subsequent transferee or obligee. 
6. 
Investment. 
An investment by a trustee in securities of 
an investment company or investment trust to which the trustee, 
or its affiliate, provides services in a capacity other than as 
trustee is not presumed to be affected by a conflict between 
personal 
and 
fiduciary interests if the 
investment otherwise 
complies 
with 
the 
prudent 
investor 
rule 
of 
chapter 
9. 
In 
addi tion to its compensation for acting as trustee, the trustee 
may be compensated by the investment company or investment trust 
for providing those services out of fees charged to the trust. 
If the trustee receives compensation from the investment company 
or 
investment 
trust 
for 
providing 
investment 
advisory 
or 
investment management services, 
the trustee at least annually 
shall notify the persons entitled under section 813 to receive a 
copy of the trustee' s annual report of the rate and method by 
which that compensation was determined. 
Sec. 16. 18-8 MRSA §813, sub-§5 is enacted to read: 
5. 
Applicable d~e. Subsection 2, paragraphs Band C apply 
only to a trustee who accepts a trusteeship on or after July 1, 
~005, to an 
irrevocabl~_truSL..kI~ated on or after July 1, 
2~ 
and to a revocable trust that becomes irrevocable on or after 
July 1, 2005. 
Sec. 17. 18·8 MRSA §814, sub-§I. as enacted by PL 2003, c. 
618, Pt. A, §1 and affected by §2, is amended to read: 
1. 
Discretionary 
pover; 
interests 
of 
Notwithstanding the breadth of discretion granted 
the terms of the trust, 
including the use of 
beneficiaries. 
to a trustee in 
such terms as 
"absolute," "sole" or "uncontrolled," the trustee shall exercise 
a discretionary power in good faith and in accordance with the 
terms 
and 
purposes 
of 
the 
trust 
aae--~Re--~a~eFes~s--e~--~Re 
geae~~e~aF~es. 
A trustee's 
power 
to 
make 
distributions 
is 
discretionary notwithstanding terms of the trust providing that 
the trustee "shall" make distributions exercising a discretionary 
power, with or without standards. 
Sec. 18. 18·8 MRSA §814. sub·§2, 1[A, as enacted by PL 2003, c. 
618, Pt. A, §l and affected by §2, is amended to read: 
A. 
A person other than a settlor who is a beneficiary and 
trustee of a trust that confers on the trustee a power to 
make discretionary distributions to or for the trustee's 
personal benefit may exercise the power only in accordance 
with an ascertainable standard 
Fe*a~~a~--~-~~-~F~s~ee~s 
~ae~y~e~a*-~~~-~~~r-S~ppeF~-~-~~~-w~~Ria 
~Re-~~~~-~~-~~a~-~~~e~~a~-~-~eee-~-*989T 
See~ieR-~g4l{9j{lj{Aj-B~-~~~~~~~~7-~~~~~~~a-J~lY-*T 
6GG9T-eF-as-*a~eF-ameaeee; and 
MAINE COMMENT 
Adoption of section 814, subsection 1 is not intended to 
impose any new or additional requirements of "good faith" upon a 
trustee's 
exercise 
of 
a 
discretionary 
power, 
or 
to 
change 
existing Maine 
law regarding the standards applicable to the 
exercise or non-exercise of a trustee's discretion. 
As noted in 
the Maine Comment to section 504, the distinction at common law 
between discretionary and support trusts is not abolished by 
enactment of this Code. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect July 1, 2005. 
SUMMARY 
The amendment of the Maine Revised Statutes, Title 18-A, 
section 5-508, 
subsection 
(g) 
preserves the effectiveness of 
powers of durable powers of attorney executed prior to July 1, 
2005. 
The new Title lS-B, section 103, subsection I-A and the 
changes to section 103, subsection 10 provide a definition of 
"ascertainable standard," 
relating to 
limits 
on 
a 
trustee's 
exercise of discretion, that is identical to the definition found 
in the federal Internal Revenue Code of 19S6. 
These amendments, 
and others related to the federal Internal Revenue Code of 19S6, 
will protect Maine 
taxpayers 
using trusts 
from 
"accidental" 
S 
taxation of the trustee because the trustee's discretion appeared 
too broad. 
The amendment to Title lS-B, section 103, subsection 12, 
paragraph B is added to clarify the definition of a "qualified 
beneficiary." 
A qualified beneficiary is entitled to receive 
certain notices and trustee reports. 
The addition to Title lS-B, section 105, subsection 3 and 
the modification of Title 
lS-B, 
section 
105, 
subsection 
2, 
paragraphs H and I will allow the settlor of a Maine trust to 
keep the trust private by limiting the persons to whom notice and 
reports must 
be given. 
To 
keep 
the 
trustee accountable 
to 
someone, a trust that takes advantage of the option to restrict 
notice must designate a representative, sometimes called a "trust 
protector," to receive the same information that would otherwise 
be provided to qualified beneficiaries. 
The 
changes 
to Title l8-B, 
section 110 clarify when 
a 
charitable 
organization, 
a 
person 
other 
than 
a 
beneficiary 
appointed 
to 
enforce 
a 
trust 
and 
the 
Attorney General 
are 
entitled to the notice and reports that are required to be 
provided to a qualified beneficiary. 
The change to Title l8-B, 
section 110, subsection 2 recognizes that the State already has a 
specific statutory provision allowing the Attorney General to 
recei ve and act on information regarding charitable trusts, and 
eliminates the potentially conflicting provisions of the uniform 
law in favor of a reference to the Maine-specific provisions of 
Title 5. 
The addition of Title l8-B, section 301, subsection 4 is 
designed to prevent an adverse federal estate and gift tax result 
that some commentators have identified as a possibility when the 
settlor of an irrevocable trust can give consent on behalf of a 
beneficiary to 
a 
modification or 
termination of 
the 
trust. 
Similarly, the new sentence added to Title l8-B, section 411, 
subsection 1 is designed to require court approval if the settlor 
and all 
the beneficiaries 
agree 
to 
modify 
or 
terminate 
an 
irrevocable trust. 
Without required approval by the court, some 
commentators believe that the property in an irrevocable trust 
that can be modified in such a way could be included in the 
settlor's taxable estate. 
Title 18-B, section 501 is amended to make it clear that, if 
a 
beneficiary's 
interest is 
not 
protected 
by 
a 
spendthrift 
provision, 
a 
creditor 
can 
attach only distributions 
to 
the 
beneficiary and not payments made by the trustee to 3rd parties 
that in some way help the beneficiary. 
Ti tle 18-B, section 504, subsection 2 is amended to clarify 
the beneficiary's right to take legal action against a trustee 
for failure to act in accordance with the terms and purposes of 
the trust. 
A new Title 18-B, section 504, subsection 3 is added 
to provide that beneficiaries who are also trustees are protected 
from creditors to the extent that distributions are subject to an 
ascertainable standard. 
Ti tle 18-B, section 603, subsection 1 protects the settlors 
of 
Maine 
trusts 
by 
making 
it 
clear 
that 
the 
remainder 
beneficiaries 
have 
no 
rights 
as 
long 
as 
the 
settlor of 
a 
revocable trust is alive, even if incapacitated. 
Title 18-B, section 704, subsection 4 is amended to delete 
the 
requirement 
that 
the 
Attorney 
General 
must 
approve 
the 
charity's appointment of the successor trustee of a charitable 
trust. 
Title 5, section 194 imposes no such requirement and is a 
comprehensive and recent enactment. 
Title 18-B, section 802, subsection 4 is amended to protect 
innocent 
3rd 
parties 
who 
purchase 
from 
a 
trustee 
from 
a 
forfeiture of the property if the trustee acted wrongfully. 
This 
protects the integrity of real estate titles and is identical to 
the provisions of Maine law with respect to fraudulent transfers. 
Title 18-B, section 813 is amended for clarification. 
Title 
18-A, section 813, 
subsection 5 is added to provide that the 
requirement of giving notice to beneficiaries does not require 
trustees to send additional notices to beneficiaries of trusts 
already in existence on July 1, 2005. 
Title 18-B, section 814, subsection 1 is amended to clarify 
that existing Maine law applicable to a trustee's exercise of 
discretionary 
power 
is 
not 
changed; 
no 
new 
or 
additional 
standards are imposed upon trustees exercising discretion. 
The 
Official Maine Comment is also amended to make the same point. 
Title 
18-B, 
section 
814, 
subsection 
2, 
paragraph 
A is 
amended to reflect the fact that an "ascertainable standard" is 
now defined in Title 18-B, 
section 103 
by deleting the 
now 
redundant words after "ascertainable standard."