A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. A breach of trust under this subsection may occur by reason of an action or by reason of a failure to act. To remedy a breach of trust by the trustee that has occurred or may occur, the court may: Compel the trustee to perform the duties of the trustee; Enjoin the trustee from committing a breach of trust; Compel the trustee to redress a breach of trust by paying money, restoring property, or other means; Order a trustee to account; Appoint a special fiduciary to take possession of the trust property and administer the trust; Suspend the trustee; Remove the trustee as provided in § 14.5–706 of this title; Reduce or deny compensation to the trustee; Subject to § 14.5–909 of this subtitle, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or proceeds from the property; or Order other appropriate relief.

A trustee that commits a breach of trust is liable to the beneficiaries affected by the breach for the greater of: The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or The profit the trustee made by reason of the breach. Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees that are also liable. A trustee that received a benefit from a breach of trust under this subsection is not entitled to contribution from another trustee to the extent of the benefit received.

Absent a breach of trust or the applicable standard of care, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.

Except as otherwise provided in § 14.5–907 of this subtitle, a beneficiary may not bring a judicial action against a trustee for breach of trust more than 1 year after the date that the beneficiary or the representative of the beneficiary is sent a report that adequately discloses the existence of a potential claim for breach of trust and informs the beneficiary or the representative of the beneficiary of the time allowed for bringing a judicial action. A report adequately discloses the existence of a potential claim for breach of trust if the report provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into the existence of the claim. This section does not limit the time for bringing an action against a trustee for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries.

A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term: Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; Was inserted into the trust as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor; or Was unreasonable under the circumstances. An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that the existence and contents of the exculpatory term were adequately communicated to the settlor. If the settlor was represented by independent counsel, an exculpatory term is not considered drafted or caused to be drafted by the trustee, even if the term incorporates suggested provisions provided by the trustee.

In this section, “interested party” means a beneficiary, representative of a beneficiary, co–trustee, successor trustee, or any other person having an interest in or authority over a trust. A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless: The consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or At the time of the consent, release, or ratification, the beneficiary did not know of the rights of the beneficiary or of the material facts relating to the breach. When a trust terminates in accordance with the terms of the trust or Subtitle 4 of this title, or on the removal or resignation of a trustee in accordance with the terms of the trust or Subtitle 7 of this title, a trustee may elect to follow the procedures set forth in this subsection concerning the release of the trustee from liability for the administration of the trust. A trustee seeking a release of the trustee from liability under this subsection shall send to the interested party from whom the trustee is seeking the release, by first–class and certified mail, return receipt requested, a report that: Informs the interested party that the trust is terminating or that the trustee has resigned or has been removed; Provides the interested party: An accounting of the trust, such as account statements, for the immediately preceding 5 years; An estimate of any trust property or interests reasonably anticipated but not yet received or disbursed; and The amount of any fees, including trustee fees, remaining to be paid; and Notifies the interested party that: The interested party may submit within 120 days after the trustee mailed the report: A written objection to the trustee regarding the trustee’s administration of the trust; or A written statement to the trustee that the interested party does not object; If the interested party does not submit a written objection to the trustee within 120 days after the trustee mailed the report, the interested party shall be deemed to have released the trustee and consented to and ratified all actions of the trustee; and The trustee is unaware of any undisclosed information that could give rise to a claim by an interested party. An interested party to whom a report was sent under subsection (c)(2) of this section shall be deemed to have released the trustee and consented to and ratified all actions of the trustee if, within 120 days after the trustee mailed the report, the interested party: Does not submit a written objection to the trustee; or Submits a written statement to the trustee that the interested party does not object. Subject to paragraph (2) of this subsection, if no interested party to whom a report was sent under subsection (c)(2) of this section submits a written objection to the trustee within 120 days after the trustee mailed the report, the trustee shall distribute the trust property to the appropriate successors in interest within a reasonable period of time. If each interested party to whom a report was sent under subsection (c)(2) of this section provides a written statement in accordance with subsection (d)(2) of this section, the trustee may distribute the trust property to the appropriate successors in interest within the 120–day period after the mailing of the report. If an interested party to whom a report was sent under subsection (c)(2) of this section submits a written objection to the trustee within 120 days after the trustee mailed the report, the objection may be: Submitted to the court, with notice to all interested parties to whom a report was sent under subsection (c)(2) of this section, to commence a proceeding for resolution of the objection; or Resolved by the agreement of all interested parties to whom a report was sent under subsection (c)(2) of this section and the trustee, in accordance with applicable laws.

Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into by the trustee in the fiduciary capacity of the trustee in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity. A claim based on a contract entered into by a trustee in the fiduciary capacity of the trustee, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the fiduciary capacity of the trustee, regardless of whether the trustee is personally liable for the claim.

In the absence of actual knowledge or of reasonable cause to inquire as to whether a trustee is improperly exercising the trustee’s power, a person dealing with a trustee need not inquire whether a trustee is properly exercising the power of the trustee and is protected as if the trustee properly exercised the power. A person need not see to the proper application of trust assets paid or delivered to a trustee.

Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: That the trust exists and the date the trust instrument was executed; The identity of the settlor; The identity and address of the currently acting trustee; The powers of the trustee in the pending transaction; The revocability or irrevocability of the trust and the identity of a person holding a power to revoke the trust; The authority of cotrustees to sign or otherwise authenticate and whether the authentication of all or fewer than all of the cotrustees is required in order to exercise powers of the trustee; The taxpayer identification number of the trust, unless the taxpayer identification number is also the Social Security number of a settlor; and The manner and name in which title to trust property may be taken. A certification of trust may be signed or otherwise authenticated by a trustee. A certification of trust shall state that the trust has not been revoked, modified, or amended in a manner that would cause the representations contained in the certification of trust to be incorrect. A certification of trust need not contain the dispositive terms of a trust. A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer on the trustee the power to act in the pending transaction. A person that acts reasonably in reliance on a certification of trust without knowledge that the representations contained in the certification are incorrect is not liable for the act. While acting reasonably under the circumstances, a person that enters into a transaction in reliance on a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct. This section does not limit: The right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust; or The right of a title insurance producer or title insurer to obtain a copy of the trust instrument for the sole purpose of determining whether the settlor’s interest in real property may be subject to creditors’ claims, when the trustee is selling, encumbering, or disposing of the real property and title insurance has been requested for the transaction.