Maryland Trust Act - In Terrorem Clause - Void

HB 1345 (Maryland Trust Act - In Terrorem Clause - Void) makes specific penalty clauses in trusts void if a person contests the trust or estate proceedings with probable cause. It directly affects beneficiaries or interested parties who might face financial penalties for legally challenging a trust. The bill adds a provision to Maryland law stating that such "in terrorem" clauses (which punish challengers) are unenforceable when valid reasons exist to contest the trust. This change applies only to cases arising after its effective date of July 1, 2026, and does not affect past disputes.