Ch. 385

1995 LAWS OF MARYLAND

CHAPTER 385
(Senate Bill 497)

AN ACT concerning

Trusts - Restrictions on Trustee's Exercise of Powers

FOR the purpose of restricting a trustee's exercise of powers where the trustee has the
power to benefit the trustee; establishing certain exceptions; defining certain terms
a certain term; excepting certain trusts from certain restrictions under certain
circumstances; providing that certain restrictions do not create a new cause of
action or impair certain existing causes of action under certain circumstances;
providing for the application of this Act; and generally relating to trusts and
restrictions on a trustee's exercise of powers.

BY adding to

Article - Estates and Trusts

Section 14-109

Annotated Code of Maryland

(1991 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Estates and Trusts

14-109.

(A) NONE OF THE FOLLOWING POWERS CONFERRED UPON A TRUSTEE BY
THE GOVERNING INSTRUMENT MAY BE EXERCISED BY THAT TRUSTEE:

(1)     THE POWER TO MAKE ANY DISCRETIONARY DISTRIBUTIONS OF
EITHER PRINCIPAL OR INCOME TO OR FOR THE BENEFIT OF THE TRUSTEE IN HIS
THE TRUSTEE'S INDIVIDUAL CAPACITY, UNLESS LIMITED BY AN ASCERTAINABLE
STANDARD RELATING TO THE TRUSTEE'S HEALTH, EDUCATION, SUPPORT AND
MAINTENANCE, AS DEFINED IN 26 U.S.C. §§ 2041 AND 2514 AND THE TREASURY
REGULATIONS PROMULGATED UNDER THOSE SECTIONS;

(2)     THE POWER TO MAKE ANY DISCRETIONARY DISTRIBUTIONS OF
EITHER PRINCIPAL OR INCOME TO SATISFY ANY OF THE TRUSTEE'S LEGAL
OBLIGATIONS IN THE TRUSTEE'S INDIVIDUAL CAPACITY FOR SUPPORT OR OTHER
PURPOSES;

(3)     THE POWER TO MAKE DISCRETIONARY ALLOCATIONS IN THE
TRUSTEE'S FAVOR OF RECEIPTS OR EXPENSES AS BETWEEN INCOME AND
PRINCIPAL;

(4)     ANY POWER, IN WHATEVER CAPACITY HELD, TO REMOVE OR
REPLACE ANY TRUSTEE WHO HOLDS ANY OF THE POWERS PROSCRIBED IN THIS
SUBSECTION; OR

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