On acceptance of a trusteeship, the trustee shall administer the trust reasonably under the circumstances, in accordance with the terms and purposes of the trust and the interests of the beneficiaries, and in accordance with this title.

A trustee shall administer the trust solely in the interests of the beneficiaries. Subject to the rights of persons dealing with or assisting the trustee as provided in § 14.5–909 of this title, a sale, an encumbrance, or any other transaction involving the investment or management of trust property entered into by the trustee for the personal account of the trustee or which is otherwise affected by a conflict between the fiduciary and personal interests of the trustee is voidable by a beneficiary affected by the transaction unless: The transaction was authorized by the terms of the trust; The transaction was approved by the court; The beneficiary did not commence a judicial proceeding within the time allowed by law; The beneficiary consented to the conduct of the trustee, ratified the transaction, or released the trustee in compliance with § 14.5–907 of this title; or The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming the trustee. A sale, an encumbrance, or any other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if the transaction is entered into by the trustee with: The spouse of the trustee; A descendant, sibling, or parent of the trustee or a spouse of a descendant, sibling, or parent of the trustee; An agent or attorney of the trustee; or A corporation or any other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the best judgment of the trustee. A transaction that does not concern trust property in which the trustee engages in an individual capacity involves a conflict between personal and fiduciary interests if the transaction concerns an opportunity properly belonging to the trust. In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or any other form of enterprise, the trustee shall elect or appoint directors or other managers that will manage the corporation or enterprise in the best interests of the beneficiaries. This section does not preclude the following transactions, if fair to the beneficiaries: An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee; Payment of reasonable compensation to the trustee; A transaction between a trust and another trust, decedent’s estate, or guardianship estate of which the trustee is a fiduciary or in which a beneficiary has an interest; or An advance by the trustee of money for the protection of the trust. The court may appoint a special fiduciary to make a decision with respect to a proposed transaction that might violate this section, if entered into by the trustee.�

If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the respective interests of the beneficiaries.

A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying the standard described in subsection (a) of this section, the trustee shall exercise reasonable care, skill, and caution.

In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

A trustee that has special skills or expertise, or is named trustee in reliance on the representation of the trustee that the trustee has special skills or expertise, shall use those special skills or expertise.

A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances to an agent, even if the agent is associated with the trustee. A trustee shall exercise reasonable care, skill, and caution in: Selecting an agent; Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and Periodically reviewing the actions of the agent in order to monitor the performance of the agent and compliance with the terms of the delegation by the agent. In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation. By accepting a delegation of powers or duties from the trustee of a trust that is subject to the laws of this State, an agent submits to the jurisdiction of the courts of this State. This section does not apply to a delegation of investment duties or powers in accordance with § 15–114 of this article.

While a trust is revocable, the trustee may follow a written direction of the settlor that is contrary to the terms of the trust. Except as provided in paragraph (2) of this subsection, if the terms of a trust confer on one or more persons, other than the settlor of a revocable trust, a power to direct, consent to, or disapprove the actual or proposed investment decisions, distribution decisions, or other decisions of the trustee, the persons shall be considered advisers and fiduciaries that, as such, are required to act reasonably under the circumstances with regard to the purposes of the trust and the interests of the beneficiaries. The trustee may not act in accordance with an exercise of the power if: The attempted exercise is manifestly contrary to the terms of the trust, unless expressly waived in writing by the settlor; or The trustee knows the attempted exercise would constitute a breach of a fiduciary duty that the person holding the power owes to the beneficiaries of the trust. A beneficiary that holds a power to direct, consent to, or disapprove of a trustee action may not be treated as a fiduciary with respect to the exercise of the power to the extent that the only persons whose interests in the trust are affected by the decision of the beneficiary are the beneficiary and those persons whose interests in the trust are subject to control by the beneficiary through the exercise of a power of appointment. An adviser under this subsection is liable for a loss that results from breach of a fiduciary duty. If the terms of a trust require that a trustee shall follow the direction of an adviser with respect to proposed investment decisions, distribution decisions, or other decisions of the trustee: The trustee shall act in accordance with the direction of the adviser and may not be liable for a loss resulting directly or indirectly from the act except in the case of willful misconduct on the part of the trustee; and The trustee shall have no duty to: Monitor the conduct of the adviser; Provide advice to the adviser; or Communicate with, warn, or apprise a beneficiary or third party concerning instances in which the trustee would or might have exercised the discretion of the trustee in a manner different from the manner directed by the adviser. Absent a preponderance of the evidence to the contrary, the actions of the trustee pertaining to matters within the scope of the authority of the adviser, such as confirming that the directions of the adviser have been carried out and recording and reporting actions taken at the direction of the adviser, shall be presumed to be administrative actions taken by the trustee solely to allow the trustee to perform those duties assigned to the trustee by the terms of the trust, and these administrative actions may not be deemed to constitute an undertaking by the trustee to monitor the adviser or otherwise participate in actions within the scope of the authority of the adviser. Unless the terms of a trust otherwise provide, an adviser that is given authority with respect to investment decisions has the power to perform the following: Direct the trustee with respect to the retention, purchase, sale, or encumbrance of the trust property and the investment and reinvestment of principal and income from the trust; Vote proxies for securities held in trust; and Select one or more investment advisers, managers, or counselors, including the trustee, and delegate to the advisers, managers, or counselors a power of the adviser. The terms of a trust may confer on a trustee or other person a power to direct the modification or termination of the trust.

A trustee shall take reasonable steps to take control of and protect the trust property, except that this duty does not apply to, and the trustee is not responsible for, items of tangible personal property that are property of a trust that is revocable by the settlor and that are not in the possession or control of the trustee.

A trustee shall keep adequate records of the administration of the trust. A trustee shall keep trust property separate from the property of the trustee. Except as otherwise provided in subsection (d) of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary. If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts.

A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. A trustee may abandon a claim that is unreasonable to enforce or assign the claim to one or more of the beneficiaries of the trust holding the claim.

A trustee is not liable to the beneficiary for a breach of trust committed by a former trustee. A trustee is liable to the beneficiary for a breach of trust if the trustee: Knows or should know of a situation constituting a breach of trust committed by a former trustee and the trustee improperly permits it to continue; Neglects to take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee; or Neglects to take reasonable steps to redress a breach of trust committed by a former trustee.

Unless unreasonable under the circumstances, a trustee shall promptly respond to the request of a qualified beneficiary for information related to the administration of the trust, including a copy of the trust instrument. A trustee: Within 60 days after accepting a trusteeship, shall notify the qualified beneficiaries of the acceptance and of the trustee’s name, address, and telephone number; and Within 90 days after the date the trustee acquires knowledge of the creation of an irrevocable trust, or the date the trustee acquires knowledge that a formerly revocable trust has become irrevocable, whether by the death of the settlor or otherwise, shall notify the qualified beneficiaries of the trust’s existence, of the identity of the settlor or settlors, of the right to request a copy of the trust instrument, and of the right to a trustee’s report as provided in subsection (c) of this section. Notice required under this subsection shall be: To the extent the names and locations or delivery addresses of the qualified beneficiaries are known to the trustee: By delivery of the notice to the qualified beneficiaries personally; or By sending the notice to the qualified beneficiaries at their delivery address by a method of notice specified in § 14.5–109(a)(3)(ii) of this title; and If the name, location or delivery address, or both of a qualified beneficiary is not known to the trustee, by publication in a newspaper of general circulation in the county where the trust property is located once a week for 3 successive weeks. On request by a qualified beneficiary, a trustee shall send to the qualified beneficiary annually and at the termination of the trust a report of the trust property, liabilities, receipts, and disbursements, including the source and amount of the compensation of the trustee, a listing of the trust assets, and, if feasible, the respective market values of the trust assets. On a vacancy in a trusteeship, unless a cotrustee remains in office, the former trustee shall send a report to the qualified beneficiaries that request the report. A personal representative, a guardian, or an attorney–in–fact may send the qualified beneficiaries a report on behalf of the former trustee. A qualified beneficiary may waive the right to a trustee’s report or other information otherwise required to be furnished under this section. A qualified beneficiary, with respect to future reports and other information, may withdraw a waiver previously given. If a trustee is a qualified beneficiary of the trust for which the trustee is serving, the trustee is not required to provide himself or herself a trustee’s report or other information required to be furnished under this section. Subsection (b) of this section does not apply to a trustee that accepts a trusteeship before January 1, 2015, to an irrevocable trust created before January 1, 2015, or to a revocable trust that becomes irrevocable before January 1, 2015.

None of the following powers conferred on a trustee by the governing instrument may be exercised by that trustee: The power to make discretionary distributions of either principal or income to, or for the benefit of, the trustee in the individual capacity of the trustee, unless limited by an ascertainable standard relating to the health, education, support, or maintenance of the trustee, as defined in 26 U.S.C. §§ 2041 and 2514 and the U.S. Treasury regulations issued under those sections; The power to make discretionary distributions of either principal or income to satisfy a legal obligation of the trustee in the individual capacity of the trustee for support or other purposes; The power to make discretionary allocations in favor of the trustee of receipts or expenses as between income and principal; A power, in whatever capacity held, to remove or replace a trustee that holds a power proscribed in this subsection; or The power to exercise a power proscribed in this subsection with regard to a beneficiary other than the trustee to the extent that the beneficiary could exercise a similar prohibited power in connection with a trust which benefits the trustee. If a trustee is prohibited by subsection (a)(1) of this section from exercising a power conferred on the trustee, the trustee may nevertheless exercise the power except that the exercise of that power by the trustee shall be limited by an ascertainable standard relating to the health, education, support, or maintenance of the trustee, as defined in 26 U.S.C. §§ 2041 and 2514 and the U.S. Treasury regulations issued under those sections. If the governing instrument contains a power described under subsection (a) of this section, and there is no trustee that can exercise the power, on application of a party in interest, a court may appoint a trustee that is not otherwise disqualified under this section to exercise the power during the period of time that the court designates. This section does not apply if: As a result of the application of subsection (a) of this section, a marital deduction for the trust property would not be allowed to a spouse who is a trustee and to whom a marital deduction would otherwise be allowed under the Internal Revenue Code; The trust is revocable or amendable, during the time that the trust remains revocable or amendable; or Contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code of 1986, as amended, as in effect on the effective date of this title, or as later amended. In this subsection, “parties in interest” means: Each trustee of the trust then serving; and Each income beneficiary and remainder beneficiary of the trust then in existence or, if the beneficiary has not attained majority or is otherwise incapacitated, the legal representative of the beneficiary under applicable law or the donee of the beneficiary under a durable power of attorney that is sufficient to grant the authority. Except as provided in subsection (d) of this section, this section applies to: A trust created under a governing instrument executed after September 30, 1995, unless the terms of the governing instrument provide expressly that this section does not apply; and A trust created under a governing instrument executed before October 1, 1995, unless all parties in interest elect affirmatively not to be subject to the application of this section on or before the later of October 1, 1998, and 3 years after the date on which the trust becomes irrevocable. The affirmative election required under subsection (e) of this section shall be made through a written declaration signed by the interested person and delivered to the trustee.

A trustee, without authorization by the court, may exercise: Powers conferred by the terms of the trust; or Except as limited by the terms of the trust: All powers over the trust property that an unmarried competent owner has over individually owned property; Other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and Other powers conferred by this title or Title 15, Subtitle 6 of this article. The exercise of a power described in subsection (a) of this section is subject to the fiduciary duties prescribed by this title.

A trustee has those powers enumerated in the trust instrument. Without limiting the authority conferred by § 14.5–815 of this subtitle and § 15–102 of this article, a trustee may exercise the powers specified in this section. With respect to possible liability for violation of environmental law, a trustee may: Inspect or investigate property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property; Take action to prevent, abate, or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of governmental enforcement; Decline to accept property into trust or disclaim a power with respect to property that is or may be burdened with liability for violation of environmental law; Compromise claims against the trust which may be asserted for an alleged violation of environmental law; and Pay the expense of an inspection, a review, an abatement, or a remedial action to comply with environmental law. A trustee may donate a conservation easement on real property, or consent to the donation of a conservation easement on real property by a personal representative of an estate of which the trustee is a legatee, in order to obtain the benefit of the estate tax exclusion allowed under § 2031(c) of the Internal Revenue Code of 1986, as amended, if: The governing instrument authorizes or directs the donation of a conservation easement on the real property; or Each beneficiary that has an interest in the real property that would be affected by the conservation easement consents in writing to the donation.

On termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of a beneficiary to object to a proposed distribution under paragraph (1) of this subsection terminates if the beneficiary does not notify the trustee of an objection within 60 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection. On the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to the trust property, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.