§ 30-4-10-42 — Limited distributive discretion

(a) As used in this section, "limited
distributive discretion" means a discretionary power of distribution that
is limited to an ascertainable standard or a reasonably definite standard.
(b) An authorized fiduciary that has limited distributive discretion
over the principal of the first trust for the benefit of one (1) or more
current beneficiaries may exercise the decanting power over the
principal of the first trust.
(c) Under this section and subject to section 44 of this chapter, a
second trust may be created or administered under the law of any
jurisdiction. A second trust must grant each beneficiary of the first trust
beneficial interests that are substantially similar to the beneficial
interests of the beneficiary in the first trust.
(d) A power to make a distribution under a second trust for the
benefit of a beneficiary who is an individual is substantially similar to
a power under the first trust to make a distribution directly to the
beneficiary. A distribution is for the benefit of a beneficiary if:
(1) the distribution is applied for the benefit of the beneficiary;
(2) the beneficiary is under a legal disability or the trustee
reasonably believes the beneficiary is incapacitated and the
distribution is made as permitted under this article; or
(3) the distribution is made as permitted under the terms of the
first-trust instrument and the second-trust instrument for the
benefit of the beneficiary.
(e) If an authorized fiduciary has limited distributive discretion of
the principal of a first trust, the fiduciary may only exercise the
decanting power under this section over the principal that the
authorized fiduciary has limited distributive discretion.

Legislative History

As added by P.L.161-2022, SEC.3.