62                                                  LAWS OF MARYLAND                                      Ch. 8

(C)  LIMITS OF LIABILITY.

EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (D) OF THIS
SECTION OR IN THE CASE OF DEFAULT OR BREACH OF DUTY, A
FIDUCIARY'S LIABILITY. EXTENDS ONLY TO ASSETS THAT THE FIDUCIARY
HOLDS AS A FIDUCIARY.

(D)  RETENTION OF MONEY TO PAY TAXES.

(1)  A FIDUCIARY WHO DISTRIBUTES PROPERTY HELD AS A
FIDUCIARY AFTER THE DATE OF FINALITY FOR THE NEXT FOLLOWING
TAXABLE YEAR SHALL RETAIN SUFFICIENT FUNDS TO PAY ANY TAXES ON
THE PROPERTY FOR THAT TAXABLE YEAR FOR ANY ASSESSMENT AGAINST THE
PROPERTY HELD IN A FIDUCIARY CAPACITY, IF THE ASSESSMENT IS MADE
BEFORE THE DATE OF FINALITY.

(2)  IF THE FIDUCIARY FAILS TO RETAIN SUFFICIENT FUNDS
TO PAY THESE TAXES, THE FIDUCIARY AND THE BOND OF THE FIDUCIARY
ARE LIABLE FOR THE TAXES.

REVISOR'S NOTE: Subsection (a) of this section is new
language added for clarity.

Subsections (b) through (d) of this section are new
language that repeat the provisions of present Art.
81, § 4(d) and (e).

In subsections (c) and (d) of this section, the
references to "assets that the fiduciary holds as a
fiduciary" and to "property held as a fiduciary" are
substituted for the present phrases "trust assets" and
"assets in his hands", for clarity.

In subsection (c) of this section, the present clause
"and no judgment or execution against the fiduciary
... shall ... bind any property held in his own right"
is omitted as superfluous.

In subsection (d) of this section, the reference to
"any assessment against the property held in a
fiduciary capacity" is substituted for the present
reference to "any assessment against him or his
decedent or beneficiary", for clarity.

Defined terms: "Assessment" § 1-101

"Date of finality" § 1-101

"Includes";"including" § 1-101 "Property" § 1-101

"Taxable year" § 1-101

1-204. COMMON TRUST FUNDS EXEMPT FROM TAXATION.

A "COMMON TRUST FUND" AS DEFINED IN § 3-501(B) OF THE
FINANCIAL INSTITUTIONS ARTICLE IS NOT SUBJECT TO TAX UNDER THIS
ARTICLE.