PARRIS N. GLENDENING, Governor

H.B. 576

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

(5)      THE POWER TO EXERCISE ANY OF THE POWERS PROSCRIBED IN
THIS SUBSECTION WITH REGARD TO A BENEFICIARY OTHER THAN THE TRUSTEE TO
THE EXTENT THAT SUCH BENEFICIARY COULD EXERCISE A SIMILAR PROHIBITED
POWER IN CONNECTION WITH A TRUST WHICH BENEFITS THE TRUSTEE.

(B)     IF A TRUSTEE IS PROHIBITED BY SUBSECTION (A)(1) OF THIS SECTION
FROM EXERCISING A POWER CONFERRED UPON THE TRUSTEE, THE TRUSTEE MAY
NEVERTHELESS EXERCISE THE POWER EXCEPT THAT THE TRUSTEE'S EXERCISE OF
THAT POWER SHALL BE 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.

(C)     IF THE GOVERNING INSTRUMENT CONTAINS A POWER DESCRIBED
UNDER SUBSECTION (A) OF THIS SECTION, AND THERE IS NO TRUSTEE WHO CAN
EXERCISE SUCH POWER, UPON APPLICATION OF ANY PARTY IN INTEREST, A COURT
MAY APPOINT A TRUSTEE WHO IS NOT OTHERWISE DISQUALIFIED UNDER THIS
SECTION TO EXERCISE ANY SUCH POWER DURING THE PERIOD OF TIME THAT THE
COURT DESIGNATES.

(D)     THIS SECTION DOES NOT APPLY IF:

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