Estates and Trusts - Fiduciaries - Attorney-Client Privilege
HB0065 clarifies how attorney-client privilege applies when a person is acting in a fiduciary capacity, such as a trustee, personal representative, guardian, or other fiduciary, including an agent under the Estates and Trusts Article. The bill states that communications between an attorney and a client who is acting as a fiduciary remain privileged even if fiduciary funds are used to pay the attorney for legal services.
The bill also provides that the mere existence of a fiduciary relationship between the fiduciary and a beneficiary does not, by itself, waive the attorney-client privilege for communications between the attorney and the fiduciary. In practical terms, the measure is aimed at preserving confidential legal advice for fiduciaries while they perform their duties, unless the client affirmatively waives the privilege.
The bill adds new Section 15-117 to the Maryland Estates and Trusts Article, creating a specific statutory rule on attorney-client privilege in fiduciary matters. It affects fiduciaries and their attorneys by confirming that payment from fiduciary funds does not eliminate privilege and by limiting arguments that beneficiaries can access privileged communications solely because a fiduciary relationship exists. The act takes effect October 1, 2026.
The available legislative record shows no recorded committee transcript debate or vote breakdown, but the bill was enacted and approved by the Governor as Chapter 501. That suggests the measure was not notably controversial in the final legislative process and likely reflected a technical or clarifying change to existing fiduciary and privilege law.
The main legal issue addressed by the bill is whether beneficiaries can claim that a fiduciary’s communications with counsel lose privilege because the attorney is paid with fiduciary funds or because the fiduciary owes duties to beneficiaries. HB0065 resolves that issue in favor of preserving privilege unless the client waives it. Any potential contention would likely come from beneficiaries or parties seeking greater transparency in fiduciary administration, while fiduciaries and their counsel would favor the confidentiality protection the bill confirms.