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Bill

HB 88

Estates and Trusts - Maryland Trust Decanting Act - Notification and Document Transmittal

2025 Regular Session Introduced by Jon Cardin

Maryland authorizes trustees to modify trusts through decanting while requiring notification and document transmission to protect beneficiary rights and ensure transparency.

Approved by the Governor - Chapter 221
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Bill Summary · HB 88

Legislative bill overview

HB 88 establishes the Maryland Trust Decanting Act, a law governing how trustees can modify trust terms by transferring trust property to new or modified trusts without beneficiary consent. The bill includes specific requirements for notifying beneficiaries and transmitting relevant documents, ensuring transparency in the decanting process.

Why is this important

Trust decanting allows trustees flexibility to adapt trusts to changed circumstances (tax law changes, beneficiary needs) without court involvement, but it significantly alters beneficiary rights. Clear notification and documentation requirements protect beneficiaries from unexpected modifications to their inheritance while enabling trustees to manage trusts more efficiently.

Potential points of contention

  • Beneficiary protection vs. trustee discretion: Balancing trustees' modernization authority against beneficiaries' interest in maintaining original trust terms and receiving notice of material changes
  • Notification scope and timing: Questions about what constitutes adequate notice, whether all beneficiaries receive timely information, and enforcement mechanisms if notifications fail
  • Document accessibility: Determining what documents must be transmitted, how detailed they must be, and whether beneficiaries can effectively challenge decanting decisions after the fact

Compiled from official sources — confirm details with the bill’s official record.

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