H.B. 576

VETOES

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1995.

May 24, 1995

The Honorable Casper R. Taylor, Jr.
Speaker of the House of Delegates
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 576.

This bill pertains to trusts and trustees' powers. It establishes ascertainable standards (as
defined in 26 U.S.C. sections 2041 and 2514 and Treasury regulations) for a trustee to
make discretionary distributions and allocations. The bill is applicable to trusts existing
on and after October 1, 1995, unless the governing instrument provides otherwise or all
parties in interest affirmatively elect otherwise.

Senate Bill 497, which was passed by the General Assembly and signed by me on May 18,
1995, accomplishes the same purpose. Therefore, it is not necessary for me to sign House
Bill 576.

Sincerely,

Parris N. Glendening

Governor

House Bill No. 576

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)

- 4216 -