§ 30-4-10-45 — First-trust instrument restriction on decanting power

Indiana § 30-4-10-45

• Jurisdiction: Indiana
• Art. 4: TRUST CODE
• Ch. 10: Uniform Trust Decanting Act

Text

(a) An authorized fiduciary may not exercise
the decanting power to the extent the first-trust instrument expressly
prohibits exercise of:
(1) the decanting power; or
(2) a power granted by state law to the fiduciary to distribute part
or all of the principal of the trust to another trust or to modify the
trust.
(b) Exercise of the decanting power is subject to a restriction in the
first-trust instrument that expressly applies to exercise of:
(1) the decanting power; or
(2) a power granted by state law to a fiduciary to distribute the
principal of the trust to another trust or to modify the trust.
(c) The decanting power of an authorized fiduciary is not precluded
by:
(1) a general prohibition of the amendment or revocation of a first
trust;
(2) a spendthrift clause; or
(3) a clause restraining the voluntary or involuntary transfer of a
beneficiary's interest.
(d) Subject to subsections (a) and (b), an authorized fiduciary may
exercise the decanting power under this chapter even if the first-trust
instrument permits the authorized fiduciary or another person to modify
the first-trust instrument or to distribute the principal of the first trust
to another trust.
(e) If a first-trust instrument contains an express prohibition
described in subsection (a) or an express restriction described in
subsection (b), the provision must be included in the second-trust
instrument.

Legislative History

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