Estates and Trusts - Resignation of Trustee - Notice
Summary
SB126 amends Maryland’s 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 the power to appoint or replace a successor trustee. The bill also preserves the existing option for a trustee to resign with court approval.
The measure does not change the basic legal framework governing trusts, but it updates the notice procedure for trustee resignation and makes the process more explicit. It also preserves the court’s authority to impose conditions to protect trust property when approving a resignation, and it confirms that a resigning trustee’s liability, or a surety’s liability on the trustee’s bond, is not eliminated by the resignation.
Impact
SB126 amends Section 14.5-705 of the Estates and Trusts Article of the Annotated Code of Maryland. Its practical effect is to standardize and broaden notice requirements before a trustee resigns, ensuring beneficiaries and other relevant parties are informed and have time to respond or arrange for succession. The bill affects trustees, beneficiaries, settlors, cotrustees, successor-appointing persons, and courts overseeing trust administration.
Sentiment
The bill appears to have been noncontroversial and broadly supported. It passed the Senate 44-0 and the House 130-0, indicating unanimous approval in both chambers. The lack of committee transcript discussion suggests the measure was viewed as a technical or clarifying update rather than a substantive policy dispute.
Contention
No notable opposition is reflected in the available record. The only potential point of interest is the balance between a trustee’s ability to resign efficiently and the need to protect trust administration and trust property through notice and, when necessary, court oversight. The bill preserves both mechanisms, which likely reduced any controversy.