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HB 1008

Fiduciary Institutions - Exploitation of Seniors and Vulnerable Adults - Protections and Required Referral (Vulnerable Adult Banking Protection Act)

2026 Regular Session Introduced by Pam Queen and 1 co-sponsor

Fiduciary institutions may delay or deny disbursements to protect seniors and vulnerable adults from financial exploitation, with required notices, record access, and immune protec

Approved by the Governor - Chapter 510
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WeVote Research Nonpartisan
Bill Summary · HB 1008

Summary of HB 1008 (Vulnerable Adult Banking Protection Act)

Purpose and intent

  • Establishes new protections for seniors (65+) and vulnerable adults with respect to fiduciary-held accounts.
  • Allows fiduciary institutions to delay or deny disbursements if there is a reasonable belief that the disbursement could result in financial exploitation.
  • Creates required referral and access-to-records procedures to support adult protective services and law enforcement investigations.
  • Provides limited immunity for fiduciary institutions acting in good faith.

Key provisions and changes

  • Definitional framework

    • Eligible adult: Maryland resident who is at least 65 years old or is a vulnerable adult.
    • Vulnerable adult: defined in Maryland Family Law as lacking the physical or mental capacity to provide for daily needs.
    • Financial exploitation: includes wrongful taking, withholding, appropriation, or use of money/assets, and acts/omissions by a person (including powers of attorney, guardianship, or conservatorship) to improperly gain control or to convert assets.
    • Trusted contact: a closely associated family member or other designated individual who is authorized to transact on the account or manage the adult’s financial affairs, or who can be contacted about the adult.

  • Fiduciary institutions and disbursement delays/denials

    • A fiduciary institution may delay or deny a disbursement from an eligible adult’s account or an account on which the eligible adult is a beneficiary if:
    • It reasonably believes the disbursement may result in financial exploitation; and
    • Within 4 business days of the request, it must:
      • Send written notice of the delay/reason to all parties authorized to transact on the account; and
      • Notify the Adult Protective Services (APS) program in the local Department of Social Services, a law enforcement agency, or the State’s Attorney.
    • The written notice cannot be sent to a party the institution reasonably believes is engaging in exploitation, but the institution must provide a status update on demand.
    • A delay expires when:
    • The institution determines the disbursement will not exploit the adult; or
    • 15 business days after the original disbursement request, whichever is first.
    • Extensions: APS, law enforcement, or State’s Attorney may request up to 25 additional business days to delay; a court order may terminate or extend the delay.
    • If no request is made for extension, the institution may extend the delay by up to 25 business days after the original request date.

  • Notices to trusted contacts

    • The institution may notify the eligible adult’s trusted contact if there is a reasonable belief of potential exploitation.
    • Notice may be limited or withheld if the trusted contact is suspected of exploitation.

  • Access to records

    • Fiduciary institutions must provide access to financial records relevant to suspected exploitation to APS, law enforcement, or the State’s Attorney as part of referrals or on request.
    • Records may include historical and recent transactions demonstrating exploitation.
    • Records provided are not public records under Maryland law.

  • Immunity

    • Institutions acting in good faith and with reasonable care are immune from administrative or civil liability for:
    • Providing required notices, and
    • Delaying or denying disbursements.

  • Interaction with existing protections

    • The bill aligns with and supplements existing Maryland protections for financial exploitation, including prior obligations for certain financial professionals to report exploitation and delay disbursements.

Who is affected

  • Fiduciary institutions in Maryland (banks, credit unions, savings and loan associations, and other supervised entities) that manage accounts for eligible adults.
  • Eligible adults (65+ and vulnerable adults) and their families/estates.
  • Trusted contacts designated by eligible adults.
  • Local Department of Social Services APS units, law enforcement agencies, and State’s Attorneys who may receive notices and participate in extension orders.
  • Public and private financial records handling in the context of exploitation investigations.

Procedural and timeline aspects

  • Effective date: October 1, 2026.
  • Disbursement delay/denial timelines:
    • Written notice of delay: within 4 business days of the request.
    • Delay duration: up to 15 business days after the request, with possible extensions up to 25 business days if requested by APS, law enforcement, or State’s Attorney (or court order).
  • Extension mechanisms:
    • Extensions may be granted via request from APS/Law Enforcement/State’s Attorney or court, extending up to 25 additional business days beyond the original request date.
  • Records and notices:
    • Required access to records for investigations.
    • Notices to trusted contacts optional and conditional.
  • Immunity:
    • Protections for good-faith actions related to notices and delays.

Fiscal and administrative notes (from the fiscal note)

  • State impact: No material impact on state operations or finances.
  • Local impact: Local APS, police, and prosecutors can handle requirements with existing resources; revenue not affected.
  • Small business impact: Potential minimal.

Summary takeaway

HB 1008 creates a structured framework for fiduciary institutions to intervene when there is a reasonable concern of financial exploitation of seniors and vulnerable adults. It adds a formal process for delaying or denying disbursements, requires rapid notification to involved parties and protective services, enables access to relevant financial records for investigations, and provides immunity for institutions acting in good faith. The act emphasizes safeguarding vulnerable adults while balancing access to funds through clearly defined timelines and oversight.

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

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