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Bill would let trustees resign with notice, avoiding court filings for older trusts
Summary
HB 146 would let a trustee resign by giving 30 days’ notice to qualified beneficiaries and other interested parties rather than seeking court approval; banks and the Maryland Bankers Association supported the change to reduce costs and improve efficiency for legacy trusts.
Delegate Carden told the House Judiciary Committee that House Bill 146 would allow a trustee to resign without first obtaining court approval if the trustee provides at least 30 days’ notice to qualified beneficiaries, the settlor (if living), co-trustees, and any person authorized to appoint a successor.
Proponents, including Robert Anton for the Maryland Bankers Association, said the proposal would address legacy trusts that lack modern resignation provisions and reduce the need for courts to release trustees in routine circumstances — a judicial-economy and cost-savings measure. Anton noted many older trusts predate standard contract language now included in newer trust instruments and that banks often must seek court releases for routine resignations, which imposes costs on beneficiaries.
Committee members asked technical questions about notice and the bill’s interplay with existing statutory protections; proponents described the measure as narrowly tailored to permit resignations when notice requirements are satisfied. The hearing transcript records the association’s support and no opposing witnesses; no committee vote or amendment was recorded in the transcript.
