§ 18-B §1214 — Trust limitation on decanting

1.
Decanting power prohibited.
An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of:
2.
Decanting power restricted.
Exercise of the decanting power is subject to any restriction in the first-trust instrument that expressly applies to exercise of:
3.
Decanting power not precluded.
A general prohibition on amendment or revocation of a first trust, a spendthrift provision or a clause restraining the voluntary or involuntary transfer of a beneficiary's interest does not preclude exercise of the decanting power.
4.
First trust permits modification or distribution.
Subject to subsections 1 and 2, an authorized fiduciary may exercise the decanting power pursuant to this Act even if the first-trust instrument permits the authorized fiduciary or another person to modify the first-trust instrument or to distribute part or all of the principal of the first trust to another trust.
5.
Express prohibition or restriction included in 2nd trust.
If a first-trust instrument contains an express prohibition described in subsection 1 or an express restriction described in subsection 2, the provision must be included in the 2nd-trust instrument.

Legislative History

PL 2021, c. 235, §1 (NEW).