Title 14.5. Maryland Trust Act — Subtitle 7. Office of Trustee
Statutes in effect as of October 1, 2026.
Md. Code Ann., Est. & Trusts § 14.5-701 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-701LinkCopy Citation
(a)
Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship:
(1)
By substantially complying with a method of acceptance provided in the terms of the trust; or
(2)
If the terms of the trust do not provide a method of acceptance of the trusteeship or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b)
(1)
A person designated as trustee that has not yet accepted the trusteeship may reject the trusteeship.
(2)
A designated trustee that does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c)
A person designated as trustee, without accepting the trusteeship, may:
(1)
Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is deceased or lacks capacity, to a qualified beneficiary; and
(2)
Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
Md. Code Ann., Est. & Trusts § 14.5-702 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-702LinkCopy Citation
(a)
A trustee shall give bond to secure performance of the duties of the trustee only if the court:
(1)
Finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust; and
(2)
Has not dispensed with the requirement.
(b)
(1)
The court may specify the amount of a bond, the liabilities of the bond, and whether sureties for the bond are necessary.
(2)
The court may modify or terminate a bond at any time.
Md. Code Ann., Est. & Trusts § 14.5-703 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-703LinkCopy Citation
(a)
If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(b)
A cotrustee shall participate in the performance of the function of a trustee unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(c)
If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or cotrustees may act for the trust.
(d)
(1)
A trustee may delegate investment and management functions to a cotrustee as prudent under the circumstances.
(2)
Unless a delegation of an investment or management function was irrevocable, a trustee may revoke a delegation previously made.
Md. Code Ann., Est. & Trusts § 14.5-704 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-704LinkCopy Citation
(a)
A vacancy in a trusteeship occurs if:
(1)
A person designated as trustee rejects the trusteeship;
(2)
A person designated as trustee cannot be identified or does not exist;
(3)
A trustee resigns;
(4)
A trustee is disqualified or removed;
(5)
A trustee dies;
(6)
A guardian of the person or guardian of the property is appointed for an individual serving as trustee;
(7)
A trustee cannot be located for 120 consecutive days; or
(8)
A trustee is unable to handle business affairs as determined by two licensed physicians.
(b)
(1)
If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled.
(2)
A vacancy in a trusteeship shall be filled if the trust has no remaining trustee.
(c)
A vacancy in a trusteeship that is required to be filled shall be filled in the following order of priority by a person:
(1)
Designated in accordance with the terms of the trust to act as successor trustee;
(2)
Appointed by unanimous agreement of the qualified beneficiaries; or
(3)
Appointed by the court.
(d)
The court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust, whether or not a vacancy in a trusteeship exists or is required to be filled.
Md. Code Ann., Est. & Trusts § 14.5-705 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-705LinkCopy Citation
(a)
A trustee may resign:
(1)
On at least 30 days’ notice to:
(i)
The qualified beneficiaries;
(ii)
The settlor, if living;
(iii)
All cotrustees; and
(iv)
Any person that has a right to replace or appoint a successor to the resigning trustee; or
(2)
With the approval of the court.
(b)
In approving a resignation of a trustee, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(c)
Liability of a resigning trustee or of a surety on the bond of the trustee for acts or omissions of the trustee is not discharged or affected by the resignation of the trustee.
Md. Code Ann., Est. & Trusts § 14.5-706 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-706LinkCopy Citation
In addition to the grounds and procedures for removal of a fiduciary set forth in § 15–112 of this article:
(1)
The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on the court’s own initiative;
(2)
The court may remove a trustee if:
(i)
The trustee has committed a serious breach of trust;
(ii)
Lack of cooperation among cotrustees substantially impairs the administration of the trust;
(iii)
Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
(iv)
There has been a substantial change of circumstances and removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interest of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available; and
(3)
Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order appropriate relief under § 14.5–901(b) of this title as may be necessary to protect the trust property or the interests of the beneficiaries.
Md. Code Ann., Est. & Trusts § 14.5-707 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-707LinkCopy Citation
(a)
Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to the trust property, a trustee that has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b)
A trustee that has resigned or has been removed shall proceed expeditiously to deliver the trust property within the possession of the trustee to the cotrustee, successor trustee, or other person entitled to the trust property.
Md. Code Ann., Est. & Trusts § 14.5-708 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-708LinkCopy Citation
(a)
(1)
If the terms of a trust do not specify a trustee’s compensation, the trustee is entitled to compensation that is reasonable under the circumstances.
(2)
If the terms of a trust specify a trustee’s compensation, the trustee is entitled to be compensated as specified in the terms, but the court may authorize more or less compensation if:
(i)
The duties of the trustee are substantially different from those contemplated when the trust was first created; or
(ii)
The compensation specified by the terms of the trust would be unreasonably low or high.
(3)
If the trustee has rendered other services in connection with the administration of the trust, the trustee shall also be allowed reasonable compensation for the other services rendered in addition to reasonable compensation as trustee.
(b)
In determining whether a trustee’s compensation is reasonable, a court shall consider:
(1)
The value and character of the trust property;
(2)
The risk and responsibility of administering the trust property;
(3)
The time spent on and the quality and character of the services provided by the trustee;
(4)
The character and cost of services provided by others;
(5)
The trustee’s skill and experience;
(6)
The results obtained by the trustee;
(7)
The terms of the trust; and
(8)
Any other factor the court considers relevant.
(c)
(1)
In determining what is a single trust for the application of the rates provided in this section, all property held undivided under the terms of the will or other instrument creating the trust shall be considered as a single trust.
(2)
After shares have been set apart or divided in accordance with paragraph (1) of this subsection, to be held in separate trust, each separate trust set apart shall be considered as a single trust.
(d)
(1)
A trustee may charge compensation that is reasonable under the circumstances and calculated in accordance with a schedule of rates previously filed by the trustee with the appropriate agency as specified in paragraph (2) of this subsection, if the trustee is:
(i)
A financial institution whose activities are subject to supervision by this State or the federal government or that is an instrumentality of the United States; or
(ii)
A member of the Maryland Bar.
(2)
A trustee shall file a schedule of rates under this subsection as follows:
(i)
For a savings and loan association, with the State Director of the Division of Savings and Loan Associations;
(ii)
For all other trustees, including attorneys and State chartered and national banks, with the Commissioner of Financial Regulation; and
(iii)
For a trustee administering an estate under the jurisdiction of a court, in addition to the filing described in item (i) or (ii) of this paragraph, with the trust clerk of the court.
(3)
In a trust involving multiple trustees in which more than one of the trustees may be entitled to file a schedule of rates, the controlling schedule will be the schedule filed by the trustee having custody of the assets and maintaining records of the trust.
(4)
(i)
On the filing by a trustee of a schedule of rates under this subsection, the trustee shall give notice to the qualified beneficiaries of each affected trust.
(ii)
The notice required under this paragraph shall be delivered to the qualified beneficiaries personally or sent to the qualified beneficiaries at the last known address of the qualified beneficiaries by certified mail, postage prepaid, return receipt requested.
(iii)
A qualified beneficiary of a trust that objects to the schedule of rates to be charged to that trust, after notifying the trustee of the objection, may petition the appropriate circuit court to review the reasonableness of the rates to be charged.
(iv)
The notice required by this paragraph shall include a clear statement of the rights and procedures available to qualified beneficiaries under this subsection.
(v)
If the court finds that the rates in the schedule are unreasonable for the current fiscal year of the particular trust, the commissions of the trustee for that trust for that fiscal year shall be limited to the rates charged that trust during the previous fiscal year.
(5)
If a trustee does not file a schedule of rates with the appropriate agency under paragraph (2)(i) or (ii) of this subsection and does not notify qualified beneficiaries as provided in paragraph (4) of this subsection, the trustee is entitled to compensation as provided in subsection (a) of this section.
(e)
An individual trustee that is not authorized to file a schedule of rates under this section is entitled to compensation as provided in subsection (a) of this section unless the trustee petitions the circuit court for the county where the trustee is located and obtains approval to file a schedule of rates after giving notice of the action to the qualified beneficiaries of the affected trusts.
(f)
The legal and court costs incurred by the trustee in accordance with a court review under subsection (d)(4) or subsection (e) of this section shall be charged against fees of the trustee and may not be assumed by the trust or the beneficiaries.
Md. Code Ann., Est. & Trusts § 14.5-709 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-709LinkCopy Citation
(a)
A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(1)
Expenses that were properly incurred in the administration of the trust; and
(2)
To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(b)
An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
Md. Code Ann., Est. & Trusts § 14.5-710 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-710LinkCopy Citation
(a)
The following persons may exercise trust or fiduciary powers in this State:
(1)
An individual;
(2)
A trust company as defined in § 1–101 of this article;
(3)
An organization exempt from taxation under § 501(c) of the Internal Revenue Code of 1986, as amended; and
(4)
Subject to subsection (b) of this section, a bank, trust company, or savings bank, other than one described in item (2) of this subsection, that is:
(i)
Organized under the laws of another state and authorized to exercise trust or fiduciary powers in the state where the principal place of business of the institution is located; or
(ii)
Organized under the laws of the United States and authorized to exercise trust or fiduciary powers under federal law.
(b)
(1)
A bank, trust company, or savings bank described in subsection (a)(4) of this section may exercise trust or fiduciary powers in this State only if the laws of the state where its principal place of business is located authorize a bank, trust company, or savings bank from this State to exercise trust or fiduciary powers in that state.
(2)
A bank, trust company, or savings bank authorized to exercise trust powers under subsection (a)(4) of this section shall file with the Commissioner of Financial Regulation, before exercising trust powers in this State, information sufficient to identify:
(i)
The correct corporate name of the bank, trust company, or savings bank;
(ii)
An address and a telephone number of a contact person for the bank, trust company, or savings bank;
(iii)
A resident agent; and
(iv)
Additional information considered necessary by the Commissioner for protection of the public.
Md. Code Ann., Est. & Trusts § 14.5-711 (2026)
Title 14.5. Maryland Trust Act
Subtitle 7. Office of Trustee
§ 14.5-711LinkCopy Citation
A judge of a court established under the laws of the State or the United States or a clerk of court or register of wills, unless the judge, clerk, or register is the surviving spouse of the grantor of the trust, or is related to the grantor within the third degree, may not serve as a trustee of an inter vivos or testamentary trust created by an instrument and executed in the State by the grantor or a trustee, administered in the State, or governed by the laws of the State, unless the judge, clerk, or register was actually serving as a trustee of the trust on December 31, 1969.