Maryland Technology Development Corporation - Long COVID Innovation Grant and Loan Program
HB0027 revises Maryland Estates and Trusts law governing compensation for guardians of property and trustees. For guardians, the bill clarifies the commission structure for income, corpus, sales of real or leasehold property, and final distributions, while preserving the existing rule that a guardian generally may receive compensation without a petition or hearing unless unusual circumstances exist. It also retains the special cap for guardians of certain disabled persons receiving long-term care services, unless a court finds unusual circumstances.
For trustees, the bill replaces the prior commission-based framework in key places with a general rule that a trustee is entitled to compensation that is reasonable under the circumstances when the trust does not specify compensation. If the trust instrument does specify compensation, the trustee is entitled to that amount unless a court finds the trustee’s duties changed substantially or the specified compensation is unreasonably low or high. The bill also allows trustees who are financial institutions or Maryland lawyers to charge compensation under a filed schedule of rates, subject to notice to qualified beneficiaries and court review if challenged. It further updates related provisions on allocation of trustee compensation and trust disbursements, including how compensation and certain environmental or administrative expenses are charged between income and principal.
The bill amends multiple sections of the Maryland Estates and Trusts Article, including provisions on guardianship compensation, trustee compensation, and allocation of trust expenses between income and principal. It modernizes the statutory framework by emphasizing reasonableness and court oversight, while preserving filing and notice requirements for certain institutional and attorney trustees. The changes affect guardians, trustees, qualified beneficiaries, circuit courts, and fiduciaries administering trusts and guardianship estates, and take effect October 1, 2025.
The available record shows no committee transcript or recorded votes, so there is no documented public debate in the provided materials. Based on the text, the bill appears to be a technical and policy update aimed at clarifying fiduciary compensation rules rather than a highly controversial measure. Its structure suggests a generally administrative purpose with an emphasis on flexibility, transparency, and judicial review.
The main potential points of contention are the shift from fixed statutory commission schedules to a broader “reasonable under the circumstances” standard for trustees, and the continued ability of certain trustees to use filed rate schedules. Beneficiaries may be concerned about higher or less predictable fees, while trustees may favor the added flexibility and clearer authority to charge for services. Another possible issue is the role of court review and notice requirements, which balance fiduciary discretion against beneficiary protections. No specific opposing positions are identified in the provided materials.