§ 59-16.1-04 — Authorized trustee with unlimited discretion

North Dakota § 59-16.1-04

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-16.1: Trust Decanting

Text

1. An authorized trustee with unlimited discretion to invade trust principal may appoint
part or all of the principal to a trustee of an appointed trust for, and only for the benefit
of, one, more than one, or all of the current beneficiaries of the invaded trust, to the
exclusion of any one or more of the current beneficiaries. The successor and
remainder beneficiaries of the appointed trust may be none, one, more than one, or all
of the successor and remainder beneficiaries of the invaded trust.
2. An authorized trustee exercising the power under subsection 1 of section 59-16.1-04
may grant a discretionary power of appointment in the appointed trust to one or more

of the current beneficiaries of the invaded trust, provided that the beneficiary granted a
power to appoint may receive principal outright under the terms of the invaded trust.
3. If the authorized trustee grants a power of appointment, the class of permissible
appointees in favor of whom the beneficiary may exercise the power of appointment
granted in the appointed trust may be broader or otherwise different from the current,
successor, and remainder beneficiaries of the invaded trust.
4. If the beneficiary or beneficiaries of the invaded trust are described by a class, the
beneficiary or beneficiaries of the appointed trust may include present or future
members of the class.