reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › Section 14.5-505 - Spendthrift Provisions -- Allowable Claims

(a)    In this section, “child” includes any person for whom an order or a judgment for child support has been entered in this State or another state.
(b)    Subject to the provisions of § 14.5–502 of this subtitle, the interest of a beneficiary that is subject to either a spendthrift provision or a support provision or both can be reached in satisfaction of an enforceable claim against the beneficiary by the following:
(1)    A child, spouse, or former spouse of the beneficiary that has a judgment or court order against the beneficiary for support or maintenance;
(2)    A judgment creditor that has provided services for the protection of the interest of a beneficiary in the trust; or
(3)    A claim of this State or the United States to the extent a statute of this State or federal law so provides.
(c)    (1)    A claimant described in subsection (b) of this section may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary.
(2)    The court may only order the trustee to satisfy all or part of the judgment out of payments of income or principal as they become due.
(3)    The court may limit the award to such relief as is appropriate under the circumstances, considering among any other factors determined appropriate by the court:
(i)    The support needs of the beneficiary’s spouse, former spouse, and dependent children;
(ii)    The support needs of the beneficiary; or
(iii)    With respect to a beneficiary that is the recipient of public benefits, the supplemental needs of the beneficiary if the trust was not intended to provide for the basic support of the beneficiary.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › Section 14.5-506 - Mandatory Distribution Provisions Other Than Support Provision -- Attachment

(a)    To the extent that the interest of a beneficiary subject to a mandatory distribution provision, other than a support provision, does not contain a spendthrift provision, the court may authorize a creditor or an assignee of the beneficiary to attach present or future mandatory distributions to or for the benefit of the beneficiary, or to reach the beneficiary’s interest by other means, as provided in § 14.5–501 of this subtitle.
(b)    A creditor or an assignee of a beneficiary may reach a mandatory distribution of a trust if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date, whether or not the trust contains a spendthrift provision or a support provision.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › Section 14.5-507 - Power of Appointment

(a)    (1)    A power of appointment held by a person other than the settlor of the trust is not a property interest.
(2)    A power of appointment described in paragraph (1) of this subsection and property subject to that power of appointment may not be judicially foreclosed or attached by a creditor of the holder of the power.
(b)    None of the following shall be sufficient to create a general power of appointment or a power of withdrawal with respect to a beneficiary or settlor:
(1)    The beneficiary serving as a trustee or cotrustee;
(2)    The settlor or the beneficiary holding an unrestricted power to remove or replace a trustee;
(3)    The settlor or the beneficiary of a trust serving as a trust administrator, a partner of a partnership, a manager of a limited liability company, or an officer of a corporation, or serving in another managerial function of another type of entity if part or all of the trust property consists of an interest in the entity;
(4)    A person related by blood or adoption to the settlor or the beneficiary serving as trustee of the trust;
(5)    The agent, accountant, attorney, financial adviser, or friend of the settlor or beneficiary serving as trustee of the trust;
(6)    A business associate of the settlor or the beneficiary serving as trustee of the trust;
(7)    A power of appointment held by the settlor other than the reserved power of the settlor to withdraw trust property for the benefit of the settlor, the creditors of the settlor, the estate of the settlor, or the creditors of the estate of the settlor;
(8)    A power to substitute property of equivalent value for trust property as defined in § 675(4)(C) of the Internal Revenue Code of 1986, as amended; or
(9)    A power to borrow trust property for less than adequate interest or without security as defined in § 675(2) of the Internal Revenue Code of 1986, as amended.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › Section 14.5-509 - Trust Property Not Subject to Obligations of Trustee

Trust property is not subject to personal obligations of the trustee of the trust, even if the trustee becomes insolvent or bankrupt.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › Section 14.5-510 - Attaching, Exercising, Reaching, or Otherwise Compelling Distribution of Beneficial Interest Prohibited; Exceptions

(a)    A creditor may not attach, exercise, reach, or otherwise compel distribution of the beneficial interest of a beneficiary that is a trustee or the sole trustee of the trust, but that is not a settlor of the trust, except to the extent that the interest would be subject to the claim of the creditor were the beneficiary not acting as cotrustee or sole trustee of the trust.
(b)    A creditor may not attach, exercise, reach, or otherwise compel distribution of the beneficial interest of a beneficiary or any other person that holds an unconditional or conditional power to remove a trustee, to replace a trustee, or to remove and replace a trustee, except to the extent that the interest would be subject to the claim of the creditor if the beneficiary or other person did not have the power to remove, replace, or remove and replace a trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 6 - Revocable Trusts › Section 14.5-601 - Capacity of Settlor

(a)    The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
(b)    Nothing in this section shall be construed to prohibit the creation of a revocable trust if that creation is otherwise authorized under State law.
(c)    The fact that the settlor becomes incapacitated or loses the capacity required to create a will does not convert a revocable trust into an irrevocable trust.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 6 - Revocable Trusts › Section 14.5-602 - Revocation or Amendment of Trusts

(a)    (1)    Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust.
(2)    This subsection does not apply to a trust created under an instrument executed before  January 1, 2015.
(b)    If a revocable trust is created or funded by more than one settlor:
(1)    To the extent the trust consists of community property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses;
(2)    To the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to the contribution of that settlor; and
(3)    On the revocation or amendment of the trust by fewer than all of the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.
(c)    The settlor may revoke or amend a revocable trust:
(1)    By substantially complying with a method to revoke or amend the trust provided in the terms of the trust; or
(2)    If the terms of the trust do not provide a method to revoke or amend the trust or the method provided in the terms of the trust is not expressly made exclusive, by:
(i)    A later will or codicil that expressly refers to the trust or specifically devises property that would have passed otherwise according to the terms of the trust; or
(ii)    Another method manifesting clear and convincing evidence of the intent of the settlor.
(d)    On revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.
(e)    The powers of a settlor with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust and the power of attorney.
(f)    A guardian of the property of the settlor or, if no guardian of the property has been appointed, a guardian of the person of the settlor may exercise the powers of the settlor with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the guardianship and only if the trust instrument does not provide otherwise.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 6 - Revocable Trusts › Section 14.5-603 - Rights of Beneficiaries Subject to Control of Settlor

(a)    Except as provided in subsection (b) of this section, while a trust is revocable, rights of the beneficiaries are subject to the control of the settlor and the duties of the trustee are owed exclusively to the settlor.
(b)    While a trust is revocable and a settlor does not have the capacity to revoke the trust, a beneficiary to which distributions may be made during the lifetime of the settlor shall have the right to enforce the trust as if the trust were irrevocable.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 6 - Revocable Trusts › Section 14.5-604 - Partial Revocation by Divorce or Annulment

(a)    This section applies:
(1)    (i)    With respect to a final judgment of absolute divorce of the settlor and the settlor’s spouse, if the final judgment was entered into on or after October 1, 2016; or
(ii)    With respect to an annulment of the marriage, if the annulment occurred on or after October 1, 2016; and
(2)    Unless otherwise expressly provided:
(i)    In the trust instrument;
(ii)    By court order; or
(iii)    By written agreement between the settlor and the settlor’s spouse or former spouse.
(b)    On the absolute divorce of the settlor and the settlor’s spouse or the annulment of the marriage occurring after the creation of the settlor’s revocable trust:
(1)    All terms of the trust relating to trust distributions to or for the benefit of the spouse shall be revoked, and, for the purposes of the trust, the spouse shall be deemed to have died on the date of the absolute divorce or annulment;
(2)    If the spouse is serving as a trustee or as an advisor to the trustee of the trust, the spouse shall be removed as a trustee or an advisor on the date of the absolute divorce or annulment without further court action; and
(3)    After the divorce or annulment, the former spouse may not:
(i)    Serve as a trustee or as an advisor to the trustee of the trust; or
(ii)    Exercise any trust or fiduciary powers provided in the terms of the trust, including any power of appointment.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 6 - Revocable Trusts › Section 14.5-605 - Limitation for Contesting Validity of Revocable Trust

A person shall commence a judicial proceeding to contest the validity of a trust that was revocable at the death of the settlor within the earliest of:
(1)    1 year after the death of the settlor; or
(2)    6 months after the trustee sends the person a copy of the trust instrument and a notice informing the person of the existence of the trust, the name and address of the trustee, and the time allowed for commencing a proceeding.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 6 - Revocable Trusts › Section 14.5-606 - Treatment of Property or Benefits After Filing of Election

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Estate subject to election” has the meaning stated in § 3–401 of this article.
(3)    “Spousal benefits” has the meaning stated in § 3–401 of this article.
(b)    After the filing of an election to take an elective share under § 3–403 of this article becomes final:
(1)    All property or other benefits that would have passed to the surviving spouse under the trust instrument, other than any portion of the spousal benefits, shall be treated as if the surviving spouse had died on the day before the settlor; and
(2)    The surviving spouse or a person claiming through the surviving spouse may not receive property, other than property forming any portion of the spousal benefits, under the trust instrument.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-701 - Acceptance or Rejection of Trusteeship

(a)    Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship:
(1)    By substantially complying with a method of acceptance provided in the terms of the trust; or
(2)    If the terms of the trust do not provide a method of acceptance of the trusteeship or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b)    (1)    A person designated as trustee that has not yet accepted the trusteeship may reject the trusteeship.
(2)    A designated trustee that does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c)    A person designated as trustee, without accepting the trusteeship, may:
(1)    Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is deceased or lacks capacity, to a qualified beneficiary; and
(2)    Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-702 - Bond

(a)    A trustee shall give bond to secure performance of the duties of the trustee only if the court:
(1)    Finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust; and
(2)    Has not dispensed with the requirement.
(b)    (1)    The court may specify the amount of a bond, the liabilities of the bond, and whether sureties for the bond are necessary.
(2)    The court may modify or terminate a bond at any time.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-703 - Cotrustees

(a)    If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(b)    A cotrustee shall participate in the performance of the function of a trustee unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(c)    If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or cotrustees may act for the trust.
(d)    (1)    A trustee may delegate investment and management functions to a cotrustee as prudent under the circumstances.
(2)    Unless a delegation of an investment or management function was irrevocable, a trustee may revoke a delegation previously made.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-704 - Vacancies

(a)    A vacancy in a trusteeship occurs if:
(1)    A person designated as trustee rejects the trusteeship;
(2)    A person designated as trustee cannot be identified or does not exist;
(3)    A trustee resigns;
(4)    A trustee is disqualified or removed;
(5)    A trustee dies;
(6)    A guardian of the person or guardian of the property is appointed for an individual serving as trustee;
(7)    A trustee cannot be located for 120 consecutive days; or
(8)    A trustee is unable to handle business affairs as determined by two licensed physicians.
(b)    (1)    If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled.
(2)    A vacancy in a trusteeship shall be filled if the trust has no remaining trustee.
(c)    A vacancy in a trusteeship that is required to be filled shall be filled in the following order of priority by a person:
(1)    Designated in accordance with the terms of the trust to act as successor trustee;
(2)    Appointed by unanimous agreement of the qualified beneficiaries; or
(3)    Appointed by the court.
(d)    The court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust, whether or not a vacancy in a trusteeship exists or is required to be filled.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-705 - Resignation of Trustee

(a)    A trustee may resign with the approval of the court.
(b)    In approving a resignation of a trustee, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(c)    Liability of a resigning trustee or of a surety on the bond of the trustee for acts or omissions of the trustee is not discharged or affected by the resignation of the trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-706 - Removal of Trustee

In addition to the grounds and procedures for removal of a fiduciary set forth in § 15–112 of this article:
(1)    The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on the court’s own initiative;
(2)    The court may remove a trustee if:
(i)    The trustee has committed a serious breach of trust;
(ii)    Lack of cooperation among cotrustees substantially impairs the administration of the trust;
(iii)    Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
(iv)    There has been a substantial change of circumstances and removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interest of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available; and
(3)    Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order appropriate relief under § 14.5–901(b) of this title as may be necessary to protect the trust property or the interests of the beneficiaries.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-707 - Duties of Trustee Following Resignation or Removal

(a)    Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to the trust property, a trustee that has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b)    A trustee that has resigned or has been removed shall proceed expeditiously to deliver the trust property within the possession of the trustee to the cotrustee, successor trustee, or other person entitled to the trust property.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-709 - Reimbursement for Expenses; Advances

(a)    A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(1)    Expenses that were properly incurred in the administration of the trust; and
(2)    To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(b)    An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-710 - Trustees

(a)    The following persons may exercise trust or fiduciary powers in this State:
(1)    An individual;
(2)    A trust company as defined in § 1–101 of this article;
(3)    An organization exempt from taxation under § 501(c) of the Internal Revenue Code of 1986, as amended; and
(4)    Subject to subsection (b) of this section, a bank, trust company, or savings bank, other than one described in item (2) of this subsection, that is:
(i)    Organized under the laws of another state and authorized to exercise trust or fiduciary powers in the state where the principal place of business of the institution is located; or
(ii)    Organized under the laws of the United States and authorized to exercise trust or fiduciary powers under federal law.
(b)    (1)    A bank, trust company, or savings bank described in subsection (a)(4) of this section may exercise trust or fiduciary powers in this State only if the laws of the state where its principal place of business is located authorize a bank, trust company, or savings bank from this State to exercise trust or fiduciary powers in that state.
(2)    A bank, trust company, or savings bank authorized to exercise trust powers under subsection (a)(4) of this section shall file with the Commissioner of Financial Regulation, before exercising trust powers in this State, information sufficient to identify:
(i)    The correct corporate name of the bank, trust company, or savings bank;
(ii)    An address and a telephone number of a contact person for the bank, trust company, or savings bank;
(iii)    A resident agent; and
(iv)    Additional information considered necessary by the Commissioner for protection of the public.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 7 - Office of Trustee › Section 14.5-711 - Judge, Clerk, Register of Wills Prohibited From Serving as Trustee; Exception

A judge of a court established under the laws of the State or the United States or a clerk of court or register of wills, unless the judge, clerk, or register is the surviving spouse of the grantor of the trust, or is related to the grantor within the third degree, may not serve as a trustee of an inter vivos or testamentary trust created by an instrument and executed in the State by the grantor or a trustee, administered in the State, or governed by the laws of the State, unless the judge, clerk, or register was actually serving as a trustee of the trust on December 31, 1969.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-801 - Administration in General

On acceptance of a trusteeship, the trustee shall administer the trust reasonably under the circumstances, in accordance with the terms and purposes of the trust and the interests of the beneficiaries, and in accordance with this title.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-803 - Two or More Beneficiaries

If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the respective interests of the beneficiaries.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-804 - Standard for Administration

(a)    A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust.
(b)    In satisfying the standard described in subsection (a) of this section, the trustee shall exercise reasonable care, skill, and caution.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-806 - Trustee With Special Skills or Expertise

A trustee that has special skills or expertise, or is named trustee in reliance on the representation of the trustee that the trustee has special skills or expertise, shall use those special skills or expertise.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-807 - Delegation of Duties and Powers

(a)    (1)    A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances to an agent, even if the agent is associated with the trustee.
(2)    A trustee shall exercise reasonable care, skill, and caution in:
(i)    Selecting an agent;
(ii)    Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(iii)    Periodically reviewing the actions of the agent in order to monitor the performance of the agent and compliance with the terms of the delegation by the agent.
(b)    In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(c)    By accepting a delegation of powers or duties from the trustee of a trust that is subject to the laws of this State, an agent submits to the jurisdiction of the courts of this State.
(d)    This section does not apply to a delegation of investment duties or powers in accordance with § 15–114 of this article.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-809 - Control and Protection of Trust Property; Exception

A trustee shall take reasonable steps to take control of and protect the trust property, except that this duty does not apply to, and the trustee is not responsible for, items of tangible personal property that are property of a trust that is revocable by the settlor and that are not in the possession or control of the trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-810 - Records; Keeping Property Separate

(a)    A trustee shall keep adequate records of the administration of the trust.
(b)    A trustee shall keep trust property separate from the property of the trustee.
(c)    Except as otherwise provided in subsection (d) of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
(d)    If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-811 - Enforcement, Defense, Abandonment or Assignment of Claims Against Trust

(a)    A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
(b)    A trustee may abandon a claim that is unreasonable to enforce or assign the claim to one or more of the beneficiaries of the trust holding the claim.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-812 - Breach of Trust

(a)    A trustee is not liable to the beneficiary for a breach of trust committed by a former trustee.
(b)    A trustee is liable to the beneficiary for a breach of trust if the trustee:
(1)    Knows or should know of a situation constituting a breach of trust committed by a former trustee and the trustee improperly permits it to continue;
(2)    Neglects to take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee; or
(3)    Neglects to take reasonable steps to redress a breach of trust committed by a former trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-815 - Powers of Trustee Without Authorization of Court

(a)    A trustee, without authorization by the court, may exercise:
(1)    Powers conferred by the terms of the trust; or
(2)    Except as limited by the terms of the trust:
(i)    All powers over the trust property that an unmarried competent owner has over individually owned property;
(ii)    Other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and
(iii)    Other powers conferred by this title or Title 15, Subtitle 6 of this article.
(b)    The exercise of a power described in subsection (a) of this section is subject to the fiduciary duties prescribed by this title.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-816 - Powers of Trustee in General

(a)    A trustee has those powers enumerated in the trust instrument.
(b)    Without limiting the authority conferred by § 14.5–815 of this subtitle and § 15–102 of this article, a trustee may exercise the powers specified in this section.
(c)    With respect to possible liability for violation of environmental law, a trustee may:
(1)    Inspect or investigate property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property;
(2)    Take action to prevent, abate, or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of governmental enforcement;
(3)    Decline to accept property into trust or disclaim a power with respect to property that is or may be burdened with liability for violation of environmental law;
(4)    Compromise claims against the trust which may be asserted for an alleged violation of environmental law; and
(5)    Pay the expense of an inspection, a review, an abatement, or a remedial action to comply with environmental law.
(d)    A trustee may donate a conservation easement on real property, or consent to the donation of a conservation easement on real property by a personal representative of an estate of which the trustee is a legatee, in order to obtain the benefit of the estate tax exclusion allowed under § 2031(c) of the Internal Revenue Code of 1986, as amended, if:
(1)    The governing instrument authorizes or directs the donation of a conservation easement on the real property; or
(2)    Each beneficiary that has an interest in the real property that would be affected by the conservation easement consents in writing to the donation.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 8 - Duties and Powers of Trustee › Section 14.5-817 - Distribution on Termination or Partial Termination of Trust

(a)    (1)    On termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution.
(2)    The right of a beneficiary to object to a proposed distribution under paragraph (1) of this subsection terminates if the beneficiary does not notify the trustee of an objection within 60 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
(b)    On the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to the trust property, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-901 - Breach of Trust

(a)    (1)    A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
(2)    A breach of trust under this subsection may occur by reason of an action or by reason of a failure to act.
(b)    To remedy a breach of trust by the trustee that has occurred or may occur, the court may:
(1)    Compel the trustee to perform the duties of the trustee;
(2)    Enjoin the trustee from committing a breach of trust;
(3)    Compel the trustee to redress a breach of trust by paying money, restoring property, or other means;
(4)    Order a trustee to account;
(5)    Appoint a special fiduciary to take possession of the trust property and administer the trust;
(6)    Suspend the trustee;
(7)    Remove the trustee as provided in § 14.5–706 of this title;
(8)    Reduce or deny compensation to the trustee;
(9)    Subject to § 14.5–909 of this subtitle, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or proceeds from the property; or
(10)    Order other appropriate relief.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-902 - Extent of Liability; Contribution

(a)    A trustee that commits a breach of trust is liable to the beneficiaries affected by the breach for the greater of:
(1)    The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or
(2)    The profit the trustee made by reason of the breach.
(b)    (1)    Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees that are also liable.
(2)    A trustee that received a benefit from a breach of trust under this subsection is not entitled to contribution from another trustee to the extent of the benefit received.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-903 - No Liability for Loss or Depreciation in Value of Trust Property or for No Profits

Absent a breach of trust or the applicable standard of care, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-904 - Limitation Period for Breach of Trust Action

(a)    Except as otherwise provided in § 14.5–907 of this subtitle, a beneficiary may not bring a judicial action against a trustee for breach of trust more than 1 year after the date that the beneficiary or the representative of the beneficiary is sent a report that adequately discloses the existence of a potential claim for breach of trust and informs the beneficiary or the representative of the beneficiary of the time allowed for bringing a judicial action.
(b)    A report adequately discloses the existence of a potential claim for breach of trust if the report provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into the existence of the claim.
(c)    This section does not limit the time for bringing an action against a trustee for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-906 - Exculpatory Clauses Unenforceable

(a)    A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term:
(1)    Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries;
(2)    Was inserted into the trust as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor; or
(3)    Was unreasonable under the circumstances.
(b)    An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that the existence and contents of the exculpatory term were adequately communicated to the settlor.
(c)    If the settlor was represented by independent counsel, an exculpatory term is not considered drafted or caused to be drafted by the trustee, even if the term incorporates suggested provisions provided by the trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-908 - Actions and Claims Against Trustee

(a)    Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into by the trustee in the fiduciary capacity of the trustee in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(b)    A claim based on a contract entered into by a trustee in the fiduciary capacity of the trustee, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the fiduciary capacity of the trustee, regardless of whether the trustee is personally liable for the claim.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-909 - Protection of Persons Dealing With Trustees

(a)    In the absence of actual knowledge or of reasonable cause to inquire as to whether a trustee is improperly exercising the trustee’s power, a person dealing with a trustee need not inquire whether a trustee is properly exercising the power of the trustee and is protected as if the trustee properly exercised the power.
(b)    A person need not see to the proper application of trust assets paid or delivered to a trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 9 - Liability of Trustees and Rights of Persons Dealing With the Trustee › Section 14.5-910 - Certification of Trust

(a)    Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information:
(1)    That the trust exists and the date the trust instrument was executed;
(2)    The identity of the settlor;
(3)    The identity and address of the currently acting trustee;
(4)    The powers of the trustee in the pending transaction;
(5)    The revocability or irrevocability of the trust and the identity of a person holding a power to revoke the trust;
(6)    The authority of cotrustees to sign or otherwise authenticate and whether the authentication of all or fewer than all of the cotrustees is required in order to exercise powers of the trustee;
(7)    The taxpayer identification number of the trust, unless the taxpayer identification number is also the Social Security number of a settlor; and
(8)    The manner and name in which title to trust property may be taken.
(b)    A certification of trust may be signed or otherwise authenticated by a trustee.
(c)    A certification of trust shall state that the trust has not been revoked, modified, or amended in a manner that would cause the representations contained in the certification of trust to be incorrect.
(d)    A certification of trust need not contain the dispositive terms of a trust.
(e)    A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer on the trustee the power to act in the pending transaction.
(f)    A person that acts reasonably in reliance on a certification of trust without knowledge that the representations contained in the certification are incorrect is not liable for the act.
(g)    While acting reasonably under the circumstances, a person that enters into a transaction in reliance on a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.
(h)    This section does not limit:
(1)    The right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust; or
(2)    The right of a title insurance producer or title insurer to obtain a copy of the trust instrument for the sole purpose of determining whether the settlor’s interest in real property may be subject to creditors’ claims, when the trustee is selling, encumbering, or disposing of the real property and title insurance has been requested for the transaction.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 10 - Miscellaneous Provisions › Section 14.5-1001 - Tax-Exempt Status

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Consideration” does not include the amount of any obligation under a mortgage, deed of trust, or other writing encumbering the transferred property.
(3)    “Trust” does not include:
(i)    A real estate investment trust as defined in § 8–101 of the Corporations and Associations Article; or
(ii)    A statutory trust as defined in § 12–101 of the Corporations and Associations Article.
(4)    “Vehicle” includes:
(i)    A motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an off–highway recreational vehicle for which sales and use tax is not collected at the time of purchase; or
(ii)    A motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 13–109(c) or (d) of the Transportation Article without a certificate of title.
(b)    A recordation tax, transfer tax, or any other State or local excise tax may not be imposed on the transfer of real property or an interest in real property without consideration or on the recordation of an instrument that transfers real property or an interest in real property without consideration if:
(1)    The transfer is to a trust; or
(2)    The transfer is from a trust to one or more beneficiaries and:
(i)    The transfer is made to a person that would be exempt from tax under Title 12 or Title 13 of the Tax – Property Article if the transfer had been made to that person directly by the grantor;
(ii)    The transfer is made during the life of the grantor of the trust and the trustee of the trust originally acquired the real property for adequate consideration; or
(iii)    The transfer is made to a beneficiary of a revocable trust as a result of the death of the settlor of the trust.
(c)    An excise tax or a certificate of title fee imposed under Title 13, Subtitle 8 of the Transportation Article may not be imposed on the issuance of an original or subsequent certificate of title issued for a vehicle that is transferred without consideration if:
(1)    The transfer is to a trust and the transfer would be exempt from the excise tax under § 13–810 of the Transportation Article if the transferor transferred the vehicle directly to one or more of the beneficiaries; or
(2)    The transfer is from a trust to one or more beneficiaries of the trust and:
(i)    The transfer is made to a person that would be exempt from the excise tax under § 13–810 of the Transportation Article if the transfer had been made to that person directly by the transferor of the vehicle to the trust;
(ii)    The transfer is made during the life of the settlor of the trust and the trustee of the trust originally acquired the vehicle for adequate consideration; or
(iii)    The transfer is made to a beneficiary of a revocable trust as a result of the death of the settlor of the trust.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 10 - Miscellaneous Provisions › Section 14.5-1003 - Interests in Grantor and Qualified Terminable Interest Property Trusts

(a)    An individual who creates a trust may not be considered the settlor of that trust with regard to the individual’s interest in the trust if:
(1)    That interest is the authority of the trustee under the trust instrument or any other provision of law to pay or reimburse the individual for any tax on trust income or trust principal that is payable by the individual under the law imposing that tax; or
(2)    All of the following apply:
(i)    The individual creates or has created the trust for the benefit of the individual’s spouse;
(ii)    The trust is treated as qualified terminable interest property under § 2523(f) of the Internal Revenue Code of 1986; and
(iii)    The individual’s interest in the trust income, trust principal, or both follows the termination of the spouse’s prior interest in the trust.
(b)    A creditor of an individual described in subsection (a) of this section may not attach, exercise, reach, or otherwise compel distribution of:
(1)    Any principal or income of the trust;
(2)    Any principal or income of any other trust to the extent that the property held in the other trust is attributable to a trust described in subsection (a)(2) of this section;
(3)    The individual’s interest in the trust; or
(4)    The individual’s interest in any other trust to the extent that the property held in the other trust is attributable to a trust described in subsection (a)(2) of this section.
(c)    This section may not be construed to affect any State law with respect to a fraudulent transfer by an individual to a trustee.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 10 - Miscellaneous Provisions › Section 14.5-1004 - Enforceability of Electronic Records or Electronic Signatures

The provisions of this title governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of those records or signatures, conform to the requirements of § 102 of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. §�7002) and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act.
2023 Maryland Statutes › Estates and Trusts › Title 14.5 - Maryland Trust Act › Subtitle 10 - Miscellaneous Provisions › Section 14.5-1005 - Severability

If a provision of this title or the application of a provision to a person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this title which can be given effect without the invalid provision or application, and to this end the provisions of this title are severable.