Article 7

(A) Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship:
(1) By substantially complying with a method of acceptance provided in the terms of the trust; or
(2) If the terms of the trust do not provide a method of acceptance of the trusteeship or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b) (1) A person designated as trustee that has not yet accepted the trusteeship may reject the trusteeship.
(2) A designated trustee that does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c) A person designated as trustee, without accepting the trusteeship, may:
(1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is deceased or lacks capacity, to a qualified beneficiary; and
(2) Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.

(a) A trustee shall give bond to secure performance of the duties of the trustee only if the court:
(1) Finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust; and
(2) Has not dispensed with the requirement.
(b) (1) The court may specify the amount of a bond, the liabilities of the bond, and whether sureties for the bond are necessary.
(2) The court may modify or terminate a bond at any time.
[MISSING UTC[(c)]]

[MISSING UTC(a)]
(a) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(b) A cotrustee shall participate in the performance of the function of a trustee unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(c) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or [MISSING "A MAJORITY OF THE REMAINING"] cotrustees may act for the trust.
(d) (1) A trustee may delegate investment and management functions to a cotrustee [UTC(e) PHRASES THIS AS PROHIBITIVE] as prudent under the circumstances. [NEW CLAUSE] [ALSO MISSING "THE SETTLOR . . . EXPECTED . . . PERFORM JOINTLY"]
(2) Unless a delegation of an investment or management function was irrevocable, a trustee may revoke a delegation previously made.
[MISSING UTC(f),(g),(h)(1),(h)(2)]

(a) A vacancy in a trusteeship occurs if:
(1) A person designated as trustee rejects the trusteeship;
(2) A person designated as trustee cannot be identified or does not exist;
(3) A trustee resigns;
(4) A trustee is disqualified or removed;
(5) A trustee dies;
(6) A guardian of the person or guardian of the property is appointed for an individual serving as trustee;
(7) A trustee cannot be located for 120 consecutive days; or
(8) A trustee is unable to handle business affairs as determined by two licensed physicians.
(b) (1) If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled.
(2) A vacancy in a trusteeship shall be filled if the trust has no remaining trustee.
(c) A vacancy in a trusteeship [MISSING "OF A NONCHARITABLE TRUST"] that is required to be filled shall be filled in the following order of priority by a person:
(1) Designated in accordance with the terms of the trust to act as successor trustee;
(2) Appointed by unanimous agreement of the qualified beneficiaries; or
(3) Appointed by the court.
[MISSING UTC(d)(1),(2),(3)]
(d) The court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust, whether or not a vacancy in a trusteeship exists or is required to be filled.

In addition to the grounds and procedures for removal of a fiduciary set forth in § 15–112 of this article:
(1) The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on the court’s own initiative;
(2) The court may remove a trustee if:
(i) The trustee has committed a serious breach of trust;
(ii) Lack of cooperation among cotrustees substantially impairs the administration of the trust;
(iii) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
(iv) There has been a substantial change of circumstances and removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interest of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available; and
(3) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order appropriate relief under § 14.5–901(b) of this title as may be necessary to protect the trust property or the interests of the beneficiaries.

(a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to the trust property, a trustee that has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b) A trustee that has resigned or has been removed shall proceed expeditiously to deliver the trust property within the possession of the trustee to the cotrustee, successor trustee, or other person entitled to the trust property.

***Former MD E&T 14-103 re-enacted***
(a) (1) (i) A testamentary trustee and trustee of any other trust whose duties comprise the collection and distribution of income from property held under a trust agreement or the preservation and distribution of the property are entitled to commissions provided for in this section for services in administering the trusts.
(ii) The amount and source of payment of commissions are subject to the provisions of any valid agreement. [SUBSTITUTED FOR "IF THE TERMS . . . DO NOT SPECIFY . . . COMPENSATION"]
(iii) A court having jurisdiction over the administration of the trust may increase or diminish commissions for sufficient cause or may allow special commissions or compensation for services of an unusual nature. [SUBSTITUTED FOR UTC(b)(1),(2)]
(2) A schedule of increased rates of income commissions and corpus commissions may be charged by a trustee whose activities are subject to State or federal supervision or that is a member of the Maryland Bar and who has:
(i) Filed a schedule of the increased rates of commissions with an appropriate agency; and
(ii) Given notice of the scheduled rates or revisions to the qualified beneficiaries of the affected trust.
(3) The notice required under paragraph (2) of this subsection shall be delivered to the qualified beneficiaries personally or sent to the qualified beneficiaries at their last known address by certified mail, postage prepaid, return receipt requested.
(b) (1) Accounting from July 1, 1981, regardless of whether the trust was in existence at that time, income commissions are:
(i) 6% on all income from real estate, ground rents, and mortgages collected in each year; and
(ii) 1. 6.5% on the first $10,000 of all other income collected in each year;
2. 5% on the next $10,000;
3. 4% on the next $10,000; and
4. 3% on any remainder.
(2) (i) Income commissions shall be paid from and chargeable against income.
(ii) Income collected includes a portion of income payable to a trustee but withheld by the payor in compliance with revenue law.
(c) (1) Accounting from July 1, 1981, regardless of whether the trust was in existence at that time, commissions are payable at the end of each year on the fair value of the corpus or principal held in trust at the end of each year as follows:
(i) 0.4% on the first $250,000;
(ii) 0.25% on the next $250,000;
(iii) 0.15% on the next $500,000; and
(iv) 0.1% on any excess.
(2) Corpus commissions under this subsection shall be paid out of and chargeable against the corpus.
(3) If a trust terminates, with respect to all or part of the corpus held in trust in the course of a year, the commission for that year shall be reduced or prorated according to the part of the year elapsed and the amount of corpus as to which the trust terminates, and be chargeable, for that part of the year, and with respect to this part of the corpus, at the termination of the trust, on the then value of the corpus.
(d) (1) For selling real or leasehold property, a commission on the proceeds of the sale is payable at the rate allowed by rule of court or statute to trustees appointed to make sales under decrees or orders of the circuit court for the county where the real or leasehold property is situated, or if the property is located outside Maryland, for selling similar property in the county where the trust is being administered.
(2) The commission described in paragraph (1) of this subsection is payable from the proceeds of the sale when collected.
(e) (1) On the final distribution of a trust estate or a portion of a trust estate, an allowance is payable commensurate with the labor and responsibility involved in making the distribution, including the making of a division, the ascertainment of the parties entitled to the distribution, the ascertainment and payment of taxes, and any necessary transfer of assets.
(2) The allowance described in paragraph (1) of this subsection is subject to revision or determination by a circuit court having jurisdiction.
(3) In the absence of special circumstances, the allowance described in paragraph (1) of this subsection shall be equal to 0.5% of the fair value of the corpus that is distributed.
(f) (1) In determining what is a single trust for the application of the rates provided in this section, all property held undivided under the terms of the will or other instrument creating the trust shall be considered as a single trust.
(2) After shares have been set apart or divided in accordance with paragraph (1) of this subsection, to be held in separate trust, each separate trust set apart shall be considered as a single trust.
(g) (1) Instead of the rates of income commissions and corpus commissions provided in subsections (b) and (c) of this section, a trustee may charge reasonable compensation calculated in accordance with a schedule of rates previously filed by the trustee with the appropriate agency as specified in paragraph (2) of this subsection, if the trustee is:
(i) A financial institution whose activities are subject to supervision by this State or the federal government or that is an instrumentality of the United States; or
(ii) A member of the Maryland Bar.
(2) A trustee shall file a schedule of rates under this subsection as follows:
(i) For a savings and loan association, with the State Director of the Division of Savings and Loan Associations;
(ii) For all other trustees, including attorneys and State chartered and national banks, with the commissioner of financial regulation; and
(iii) For a trustee administering an estate under the jurisdiction of a court, in addition to the filing described in item (i) or (ii) of this paragraph, with the trust clerk of the court.
(3) In a trust involving multiple trustees in which more than one of the trustees may be entitled to file a schedule of increased rates, the controlling schedule will be the schedule filed by the trustee having custody of the assets and maintaining records of the trust.
(4) (i) On the filing by a trustee of a schedule of increased rates under this subsection, the trustee shall give notice to the qualified beneficiaries of each affected trust.
(ii) The notice required under this paragraph shall be delivered to the qualified beneficiaries personally or sent to the qualified beneficiaries at the last known address of the qualified beneficiaries by certified mail, postage prepaid, return receipt requested.
(iii) A qualified beneficiary of a trust that objects to the schedule of rates to be charged to that trust, after notifying the trustee of the objection, may petition the appropriate circuit court to review the reasonableness of the rates to be charged.
(iv) The notice required by this paragraph shall include a clear statement of the rights and procedures available to qualified beneficiaries under this subsection.
(v) If the court finds that the rates in the schedule are unreasonable for the current fiscal year of the particular trust, the commissions of the trustee for that trust for that fiscal year shall be limited to the rates charged that trust during the previous fiscal year.
(5) If a trustee does not file a schedule of rates with the appropriate agency under paragraph (2)(i) or (ii) of this subsection and does not notify qualified beneficiaries as provided in paragraph (4) of this subsection, the trustee is limited to charging the rates set forth in subsections (b) and (c) of this section.
(h) An individual trustee that is not authorized to file a schedule of increased rates under this section is limited to charging the rates set forth in subsections (b) and (c) of this section unless the trustee petitions the circuit court for the county where the trustee is located and obtains approval of an increase in fee after giving notice of the action to the qualified beneficiaries of the affected trusts.
(i) The schedule of increased rates of income commissions and corpus commissions which trustees are authorized to charge as provided in subsection (g) of this section is not applicable to guardians.
(j) The legal and court costs incurred by the trustee in accordance with a court review under subsection (g)(4) or subsection (h) of this section shall be charged against fees of the trustee and may not be assumed by the trust or the beneficiaries.

(a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(1) Expenses that were properly incurred in the administration of the trust; and
(2) To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(b) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.

***Former MD E&T 14-110 re-enacted***
(a) The following persons may exercise trust or fiduciary powers in this State:
(1) An individual;
(2) A trust company as defined in § 1–101 of this article;
(3) An organization exempt from taxation under § 501(c) of the internal revenue code of 1986, as amended; and
(4) Subject to subsection (b) of this section, a bank, trust company, or savings bank, other than one described in item (2) of this subsection, that is:
(i) Organized under the laws of another state and authorized to exercise trust or fiduciary powers in the state where the principal place of business of the institution is located; or
(ii) Organized under the laws of the united states and authorized to exercise trust or fiduciary powers under federal law.
(b) (1) A bank, trust company, or savings bank described in subsection (a)(4) of this section may exercise trust or fiduciary powers in this State only if the laws of the state where its principal place of business is located authorize a bank, trust company, or savings bank from this State to exercise trust or fiduciary powers in that state.
(2) A bank, trust company, or savings bank authorized to exercise trust powers under subsection (a)(4) of this section shall file with the commissioner of financial regulation, before exercising trust powers in this State, information sufficient to identify:
(i) The correct corporate name of the bank, trust company, or savings bank;
(ii) An address and a telephone number of a contact person for the bank, trust company, or savings bank;
(iii) A resident agent; and
(iv) Additional information considered necessary by the commissioner for protection of the public.

***Former MD E&T 14-104 re-enacted***
A judge of a court established under the laws of the State or the United States or a clerk of court or register of wills, unless the judge, clerk, or register is the surviving spouse of the grantor of the trust, or is related to the grantor within the third degree, may not serve as a trustee of an inter vivos or testamentary trust created by an instrument and executed in the state by the grantor or a trustee, administered in the State, or governed by the laws of the State, unless the judge, clerk, or register was actually serving as a trustee of the trust on December 31, 1969.