Maine was one of the earlier states to adopt the Uniform Trust Code, effective in 2004. The state follows the UTC closely and added the Uniform Trust Decanting Act in 2021, giving families a modern tool for updating outdated trust provisions. Maine also has a state estate tax with an exemption significantly lower than the federal threshold. The Maine Trust Code is found at 18-B M.R.S. Sections 101 through 1104.
This guide applies to both revocable and irrevocable trusts in Maine.
Where Maine trust law lives
Maine's trust statutes are codified in 18-B M.R.S. Sections 101 through 1104. The Uniform Trust Decanting Act is at 18-B M.R.S. Sections 1201 through 1230, adopted in 2021. The code follows the standard UTC structure with relatively few modifications.
Accounting and notice requirements
Maine follows the standard UTC notice framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship of an irrevocable trust. Annual accounting to qualified beneficiaries is required under the default rules.
While the trust is revocable and the trust creator is alive and competent, the trustee's duties run primarily to the trust creator.
Trustee duties
Maine trustees must administer the trust in good faith, following the trust's terms and purposes, and in the interests of the beneficiaries. All standard UTC duties apply: loyalty, impartiality, prudent administration, and prudent investing. Compensation follows the trust instrument first, with reasonable compensation as the default.
What makes Maine different
State estate tax. Maine imposes a state estate tax with an exemption significantly lower than the federal threshold (approximately $6.8 million, indexed for inflation). This means some Maine estates that would not owe federal estate tax may still face state-level estate tax. The estate tax rate ranges from 8% to 12%. For families with estates near this threshold, trust-based planning is especially important.
Uniform Trust Decanting Act (2021). Maine's adoption of the Uniform Trust Decanting Act gives trustees the ability to distribute trust assets into a new trust with different terms. This is particularly valuable for updating older trusts that were created before Maine adopted the UTC in 2004 or that contain provisions no longer suited to the family's circumstances.
Early UTC adoption. Maine adopted the UTC in 2004, giving the state over two decades of case law interpreting the code. This provides a degree of predictability for trustees and beneficiaries about how courts will apply the rules.
Standard UTC modification tools. Maine provides nonjudicial settlement agreements, court modification for changed circumstances, and modification by consent.
TrustHelm tip: Maine's state estate tax means that even estates below the federal threshold may face tax obligations. TrustHelm's asset tracking features can help you understand the total value of trust assets and plan around Maine's lower exemption amount.
The most common Maine trust mistakes
Not funding the trust. The most common trust mistake in every state: assets must be properly transferred into the trust to avoid probate.
Ignoring the state estate tax. Maine's estate tax exemption is well below the federal threshold. Families sometimes assume no estate tax applies because they are under the federal limit, when they may actually owe Maine estate tax.
Not using the decanting act. The 2021 decanting act is a powerful tool that many Maine families do not know about. Older trusts with outdated provisions can be modernized without going to court.
Missing the 60-day notice deadline. When a trust becomes irrevocable, the trustee must notify qualified beneficiaries within 60 days.
When to talk to an attorney
You should consult a Maine trust attorney if you need help with estate tax planning around Maine's lower exemption, if you want to explore using the decanting act to update an older trust, if you have been named as trustee and need to understand your obligations, or if you are a beneficiary who has not received information about an irrevocable trust.
If you need help finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney tool.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.