Home Table of Contents

§ 14-605. Consent or court approval not required for exercise of decanting power; notice of exe...

West's Annotated Code of MarylandEstates and TrustsEffective: October 1, 2023

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 14. Trusts (Refs & Annos)
Subtitle 6. Maryland Trust Decanting Act (Refs & Annos)
Effective: October 1, 2023
MD Code, Estates and Trusts, § 14-605
§ 14-605. Consent or court approval not required for exercise of decanting power; notice of exercise of decanting power
Currentness
Consent or court approval not required
(a) Except as otherwise provided in this subtitle, an authorized fiduciary may exercise the decanting power without the consent of any person and without court approval.
Notice required
(b)(1) Except as provided in subsection (d) of this section and paragraph (2) of this subsection, an authorized fiduciary shall give notice in a record of any intended exercise of the decanting power at least 60 days before the exercise to:
(i) Each settlor of the first trust, if living or then in existence;
(ii) Each qualified beneficiary of the first trust and the Attorney General if the Attorney General has the rights of a qualified beneficiary under § 14-611 of this subtitle;
(iii) Each holder of a presently exercisable power of appointment over any part of the first trust;
(iv) Each person that currently has a right to remove or replace the authorized fiduciary; and
(v) Any other fiduciary of the first or second trusts.
(2) An authorized fiduciary is not required to give notice to any person under this subsection if the person is not known to the fiduciary or is known to the fiduciary and cannot be located after reasonable diligence.
Contents of notice
(c) The notice required under subsection (b) of this section shall:
(1) Specify the manner in which the authorized fiduciary intends to exercise the decanting power;
(2) Specify the proposed effective date for the exercise of the power; and
(3) Include a copy of the first trust instrument and all second trust instruments.
Waiver of notice period
(d) An authorized fiduciary may exercise the decanting power sooner than 60 days after providing the notice required by subsection (b) of this section if all persons entitled to receive the notice waive the period in a signed record.
Rights unaffected by notice provisions
(e) The receipt of notice, waiver of the notice period, or expiration of the notice period does not affect the right of a person to file an application asserting that:
(1) An attempted exercise of the decanting power is ineffective because the exercise:
(i) Did not comply with the provisions of this subtitle;
(ii) Was an abuse of discretion; or
(iii) Was a breach of fiduciary duty; or
(2) § 14-619 of this subtitle applies to the exercise of the decanting power.
Effect of failure to give notice
(f) An exercise of the decanting power is not ineffective because an authorized fiduciary failed to give notice as required by subsection (b) of this section if the authorized fiduciary acted with reasonable care to comply with the requirements of this section.

Credits

Added by Acts 2023, c. 715, § 1, eff. Oct. 1, 2023; Acts 2023, c. 716, § 1, eff. Oct. 1, 2023.
MD Code, Estates and Trusts, § 14-605, MD EST & TRST § 14-605
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document