An Act Regarding Trustee Duties to Beneficiaries
Maine Legislature, Session 131, LD 1763
Committee: Judiciary
Sponsors: LAWRENCE, SARGENT, RUNTE
Amends: 18-B MRSA §810, 18-B MRSA §818, 18-B MRSA §819, 18-B MRSA §1004

Legislative Document
No. 1763
S.P. 710
In Senate, April 24, 2023
An Act Regarding Trustee Duties to Beneficiaries
Reference to the Committee on Judiciary suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LAWRENCE of York.
Cosponsored by Representative SARGENT of York and
Representative: RUNTE of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  18-B MRSA §810, sub-§5 is enacted to read:
5.  Scheduled reports.  Annually, and within 30 days of a written request of a 
beneficiary, a trustee shall send a beneficiary a written report that includes:
A. Information detailing the property, liabilities, receipts and disbursements of the 
trust, including:
(1) A list of the trust's assets and, if feasible, the market value of each asset; and
(2) The amount and source of money coming into the trust and the amount and 
recipient of money paid out of the trust; and
B. The amount and source of the trustee's compensation.
Sec. 2.  18-B MRSA §818 is enacted to read:
§818.  Selling real property and dwellings belonging to trust
1. Current appraisal.  A trustee may not sell or otherwise convey real property or a 
dwelling belonging to a trust in an amount not supported by an appraisal conducted within 
days of the sale or conveyance by an impartial appraiser certified under Title 32, chapter 
124.
2. Alternative housing for beneficiary. A trustee may not sell or otherwise convey 
real property that is the primary residence or a dwelling that is the primary residence of a 
beneficiary without the consent of the beneficiary unless the trustee arranges for alternative 
housing of the same or similar quality and accommodations as the real property or dwelling 
being sold or conveyed.
Sec. 3.  18-B MRSA §819 is enacted to read:
§819.  Beneficiaries with physical or mental disabilities
1. Accommodations for beneficiary with physical or mental disability.  A trustee 
shall make appropriate accommodations for a beneficiary with a physical or mental 
disability supported by documentation to ensure that the trustee and the administration of 
the trust meet the special needs of the beneficiary. A beneficiary may bring an action 
against a trustee who violates this subsection.  For purposes of this section, "physical or 
mental disability" has the same meaning as in Title 5, section 4553-A. 
2. Court review.  In reviewing any matter involving a trust with a beneficiary with a 
physical or mental disability, the court shall make any decision in the best interests of the 
special needs of the beneficiary.
Sec. 4.  18-B MRSA §1004, as enacted by PL 2003, c. 618, Pt. A, §1 and affected 
by §2, is amended to read:
§1004.  Attorney's fees and costs
In a judicial proceeding involving the administration of a trust, the court, as justice and 
equity may require, may award costs and expenses, including reasonable attorney's fees, to 
any party, to be paid by another party or from the trust that is the subject of the controversy. 
A trustee may not expend funds or assets of the trust in any controversy against a 
beneficiary without the prior approval of the court upon a showing of a reasonable 
likelihood of prevailing in the controversy.  The court may allow a beneficiary to expend 
funds or assets of the trust in a controversy against the trustee upon a showing of a colorable 
claim against the trustee.
SUMMARY
This bill regards trusts and does the following.
1. It requires a trustee to send on an annual basis or within 30 days of a written request 
by a beneficiary a detailed report on the trust, including the trust's assets, liabilities, receipts 
and disbursements and the compensation received by the trustee.
2. It requires a trustee, when selling or otherwise conveying real property or a dwelling 
that is the primary residence of a beneficiary, to support the sales price by an appraisal 
conducted within 90 days of the sale or conveyance by an impartial certified appraiser and 
arranging alternative housing of the same or similar quality and accommodation for the 
beneficiary as the housing sold or conveyed.
3. It requires a trustee to make appropriate accommodations for a beneficiary with a 
physical or mental disability to ensure that the special needs of the beneficiary are met, 
allows a beneficiary to bring an action to enforce this provision and requires a court to 
make any decision in a matter involving a beneficiary of a trust who has a physical or 
mental disability in the best interests of the special needs of the beneficiary.
4. It requires a trustee to make a showing to the court of a reasonable likelihood of 
prevailing prior to expending funds or assets of a trust in a controversy against a beneficiary 
and allows a beneficiary to expend funds or assets of a trust in a controversy against a 
trustee upon a showing to the court of a colorable claim against the trustee.