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Bill would standardize notice methods for trustees exercising decanting powers
Summary
HB 88 would add a uniform method for providing notice when a trustee elects to decant an existing trust into a new trust; sponsor said the change clarifies an existing gap in the Maryland Decanting Act.
Delegate Carden told the Judiciary Committee that House Bill 88 would clarify how trustees must give notice to qualified beneficiaries and interested parties before exercising a decanting power — the process by which a trustee transfers assets from an existing trust into another trust with similar beneficiaries but different terms.
Supporters said the Maryland Decanting Act lacks a uniform notice methodology and HB 88 would adopt the notice procedures used elsewhere in Maryland trust law — personal service, certified or first-class mail with return receipt, courier delivery, or other consented methods — and require at least 60 days’ notice to qualified beneficiaries before a decanting exercise. Proponents argued the change would reduce disputes about whether notice was adequate and improve predictability for trustees and beneficiaries.
Questions from committee members centered on how notice currently is handled and whether adopting a uniform method would raise practical issues for legacy trusts. Delegate Carden said the bill is primarily a clarification intended to align the decanting act with other trust-notice provisions and asked the committee for a favorable report; no formal vote or amendments were recorded in the hearing transcript.
