
Trust “decanting” refers to the technique of transferring assets from an existing irrevocable trust to a new irrevocable trust, typically with more “favorable” terms. The power to transfer assets from one trust to another is commonly derived from the trustee’s broad discretionary authority to make distributions to, or for the benefit of, the beneficiaries of the original trust. Decanting has the effect of amending what was typically intended to be an unamendable irrevocable trust, by allowing the trustee to distribute trust property to a second trust with terms that may differ substantially from those of the original instrument. The concept…
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