Legislative Fact Sheet - Trust Decanting

Act Trust Decanting
Origin Completed by the Uniform Law Commission in 2015.
Description “Decanting” is the term used to describe the distribution of assets from one trust into a second trust, like wine is decanted from the bottle to another vessel. Decanting can be a useful strategy for changing the outdated terms of an otherwise irrevocable trust, but can also be abused to defeat the settlor’s intent. The Uniform Trust Decanting Act allows a trustee to reform an irrevocable trust document within reasonable limits that ensure the trust will achieve the settlor’s original intent. The act prevents decanting when it would defeat a charitable or tax-related purpose of the settlor.
Enactments Alabama, California, Colorado, New Mexico, North Carolina, Virginia, Washington
2018 Introductions Illinois
Staff Liaison(s) Benjamin Orzeske