Bill
HB 146
Maryland HB 146 lets a trustee resign with 30 days’ written notice to beneficiaries, settlor, co-trustees, and appointors, without court approval, preserving liability and protecti
I’m seeing conflicting materials in the packet you provided (multiple different HB 146s from different states and subject areas). To be sure I summarize the correct bill, do you want a summary of:
Below is a ready summary of the Maryland HB 146 (Estates & Trusts — Resignation of Trustee), since that bill is fully documented in your materials. If you’d prefer a different HB 146, tell me which one and I’ll prepare that instead.
Summary — Maryland HB 146 (Estates & Trusts — Resignation of Trustee — Notice)
Purpose and intent
- To authorize trustees under the Maryland Trust Act to resign without seeking prior court approval so long as specified notice is provided — thereby providing a non‑judicial pathway for trustee resignation while preserving protections for trusts and beneficiaries.
Key provisions
- Amends Maryland Code, Estates & Trusts §14.5‑705.
- A trustee may resign either:
- By providing at least 30 days’ notice to each of the following:
- the qualified beneficiaries of the trust;
- the settlor, if living;
- all co‑trustees; and
- any person who has the right to replace or appoint a successor to the resigning trustee; or
- With the approval of the court (the existing route).
- When the court approves a resignation, it may issue orders and impose conditions reasonably necessary to protect trust property.
- Resignation does not discharge or otherwise affect the resigning trustee’s liability (or the liability of a surety on the trustee’s bond) for acts or omissions occurring while the trustee served.
- Retains existing protections concerning duties of a resigning trustee (e.g., the duty to deliver trust property expeditiously to a successor or other entitled person until delivery occurs), to the extent consistent with the statute and trust terms.
Who is affected
- Trustees of trusts governed by the Maryland Trust Act (both professional and individual trustees).
- Qualified beneficiaries and settlors — they must receive the 30‑day notice in many resignations.
- Co‑trustees and persons empowered to appoint successors (e.g., trust protectors, appointing authorities).
- Courts: may see fewer routine resignation petitions but retain authority to review and impose protective conditions when court approval is sought.
Procedural and timeline aspects
- The new notice‑based resignation option requires at least 30 days’ advance written notice to the listed parties.
- The act preserves the option to seek court approval if parties choose that route.
- Effective date: October 1, 2025 (per the bill text).
- Fiscal notes accompanying the bill state it would not directly affect State or local finances and would have minimal small‑business effect.
Practical impact and considerations
- Likely reduces the administrative burden and cost of routine trustee resignations that are uncontested and where successor appointment is clear.
- Preserves protections for beneficiaries via the 30‑day notice requirement and the continued potential for court oversight when needed.
- Liability for prior acts is expressly preserved, maintaining an accountability mechanism for resigning trustees.
Status (from your documents)
- House version and committee reports recorded; documents show final enactment as Chapter 228, approved by the Governor on April 22, 2025, and effective October 1, 2025.
If you want, I can:
- Produce a short comparison (before vs. after) in bullet form;
- Draft a one‑page explainer for trustees and beneficiaries about how to use/respond to the 30‑day notice; or
- Summarize a different HB 146 from the packet (please indicate which).
Compiled from official sources — confirm details with the bill’s official record.
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