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Estate and trusts laws are always evolving, and staying ahead of those changes is key to protecting your legacy.

The Maryland General Assembly’s 2025 legislative session brought forth several important bills related to estate planning and administration that could impact how families plan for the future. At Sessa & Dorsey, we don’t just draft documents, we help you adapt your strategy as laws, lives, and legacies evolve. Here’s a look at the most recent legislation and what it could mean for your estate plan.

• Estate Tax Exemption – Earlier this year, Governor Wes Moore proposed a change to Maryland’s estate tax exemption. He suggested lowering the exemption from $5 million to $2 million per individual. This would mean that any assets in a person’s estate exceeding $2 million would be taxed at Maryland’s 16% rate. However, this proposal did not pass, and the estate tax exemption will stay at $5 million per individual.
  
  
• Compensation of Guardians of Property and Trustees – Maryland Guardians of Property and Trustees used to have to charge fixed fees. However, a new rule has been introduced to clarify how they can set their fees. This updated legislation emphasizes reasonable compensation rates, allowing for more flexibility and fairness, while ensuring proper oversight. The new changes will take effect on October 1, 2025.
  
  
• Resignation of Trustee – Under the Maryland Trust Act, a Trustee needed to get court approval to resign, unless the Trust Agreement stated otherwise. Now, Maryland is making it easier for Trustees to resign. Starting October 1, 2025, a Trustee can resign by giving 30 days’ notice to the beneficiaries, the creator of the trust (if they are still alive), any co-trustees, and anyone who has the power to appoint or replace a Trustee.
  
  
• Task Force to Study Fiduciary Adjudication in Maryland – This legislation creates a task force aimed at examining the probate and fiduciary court systems in Maryland. The task force will focus on improving court efficiency, evaluating judge qualifications, and addressing jurisdiction issues. The bill is set to take effect on July 1, 2025, and will last for one year.
  
  
• Spousal Lifetime Access Trusts – The bill proposed to change the rules about when a person who creates a trust could keep certain interests in that trust without a creditor being able to claim them. However, this bill did not pass, which means that Maryland’s laws regarding Spousal Lifetime Access Trusts (SLATs) will stay the same.
  
  
• Fiduciaries – Attorney-Client Privilege – This legislation aimed to clarify and enhance attorney-client privilege in fiduciary situations, even if fiduciary funds were used to cover the attorney’s legal fees. This legislation did not succeed in passing.
  
  

As legislation shifts, so should your estate plan. At Sessa & Dorsey, we stay on top of changes like these so you don’t have to, offering proactive guidance that keeps your estate plan effective, aligned, and built to last.

If you have questions about how these updates could affect you or your clients, we’re here to help. Contact us at (443) 589-5600.