North Dakota § 59-16.1-05 Authorized trustee without unlimited discretion

North Dakota Statutes

§ 59-16.1-05 — Authorized trustee without unlimited discretion

North Dakota § 59-16.1-05

Title 59Trusts, Uses, and Powers

Ch. 59-16.1Trust Decanting

This text of North Dakota § 59-16.1-05 (Authorized trustee without unlimited discretion) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 59-16.1-05 (2026).

Text

1.An authorized trustee with the power to invade trust principal but without unlimited discretion may appoint part or all of the principal of the trust to a trustee of an appointed trust, provided that the current beneficiaries of the appointed trust must be the same as the current beneficiaries of the invaded trust and the successor and remainder beneficiaries must be the same as the successor and remainder beneficiaries of the invaded trust.

2.If the authorized trustee exercises the power under this section, the appointed trust must include the same language authorizing the trustee to distribute the income or invade the principal of the appointed trust as in the invaded trust.

3.If the authorized trustee exercises the power under this section to extend the term of the appointed trust

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1. An authorized trustee with the power to invade trust principal but without unlimited
discretion may appoint part or all of the principal of the trust to a trustee of an
appointed trust, provided that the current beneficiaries of the appointed trust must be
the same as the current beneficiaries of the invaded trust and the successor and
remainder beneficiaries must be the same as the successor and remainder
beneficiaries of the invaded trust.
2. If the authorized trustee exercises the power under this section, the appointed trust
must include the same language authorizing the trustee to distribute the income or
invade the principal of the appointed trust as in the invaded trust.
3. If the authorized trustee exercises the power under this section to extend the term of
the appointed trust beyond the term of the invaded trust, then for any period after the
invaded trust would have otherwise terminated under the provisions of the invaded
trust, then the appointed trust, in addition to the language required to be included in
the appointed trust pursuant to subsection 2 of section 59-16.1-05, also may include
language providing the trustee with unlimited discretion to invade the principal of the
appointed trust during this extended term.
4. If the beneficiary or beneficiaries of the invaded trust are described by a class, the
beneficiary or beneficiaries of the appointed trust shall include present or future
members of the class.
5. If the authorized trustee exercises the power under this section and if the invaded trust
grants a power of appointment to a beneficiary of the trust, the appointed trust shall
grant the power of appointment in the appointed trust and the class of permissible
appointees must be the same as in the invaded trust.