Bill > SB126

This bill modifies the Maryland Trust Act to clarify the process by which a trustee can resign from their position. Specifically, the bill allows a trustee to resign by providing at least 30 days' written notice to several key parties: qualified beneficiaries (individuals who are entitled to receive distributions or have other rights under the trust), the settlor (the person who created the trust) if they are still living, all co-trustees, and any person who has the authority to appoint or replace the resigning trustee. As an alternative method of resignation, a trustee can still seek court approval. The bill also maintains existing provisions that protect the trust, allowing the court to issue orders and impose conditions to safeguard trust property when a resignation is being processed. Additionally, the bill explicitly states that a trustee's resignation does not absolve them of liability for previous actions or omissions. The new provisions will take effect on October 1, 2025, providing clarity and a standardized process for trustee resignations under Maryland law.

Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0126?ys=2025RS