Estates and Trusts - Resignation of Trustee - Notice
Summary
HB146 amends the Maryland Trust Act to clarify how a trustee may resign from a trust. Under the bill, a trustee may resign by giving at least 30 days’ notice to the qualified beneficiaries, the settlor if living, all cotrustees, and any person with a right to replace or appoint a successor trustee. The bill also preserves the existing option for a trustee to resign with court approval.
The measure is a targeted update to Estates and Trusts law, specifically Maryland Code, Estates and Trusts § 14.5-705. It does not change the underlying duties of trustees or the rules governing trust administration beyond the notice requirement for resignation. It also leaves intact the rule that a resigning trustee’s liability, and any surety’s liability on the trustee’s bond, is not discharged by the resignation. The act takes effect October 1, 2025.
Impact
HB146 changes state trust law by codifying a minimum 30-day notice process for trustee resignation and identifying the parties who must receive notice. This affects trustees, beneficiaries, settlors, cotrustees, successor-appointer parties, and courts overseeing trust matters. The bill is a procedural clarification rather than a substantive overhaul of fiduciary duties, and it amends a single section of the Estates and Trusts Article.
Sentiment
The bill appears to have been noncontroversial and broadly supported. It passed the House 132-0 and the Senate 47-0, indicating unanimous approval in both chambers. The lack of committee transcript discussion suggests the measure was viewed as a routine, technical clarification to trust administration law rather than a policy dispute.
Contention
No notable opposition is reflected in the available record. The only potential point of interest is the balance between allowing trustees to resign efficiently and ensuring adequate notice to beneficiaries and other interested parties. However, the unanimous votes and absence of recorded debate suggest there was little or no disagreement over the bill’s approach.