Section 34-NEW - [Newly enacted section not yet numbered] [Effective 1/1/2025] Decanting power under expanded discretion(a) Subject to subsection (b) of this section and section 14 of this act, an authorized fiduciary that has expanded distributive discretion over the principal of a first trust for the benefit of one or more current beneficiaries may exercise the decanting power over the principal of the first trust.(b) Subject to section 13 of this act, in an exercise of the decanting power under this section, a second trust may not: (1) Include as a current beneficiary a person who is not a current beneficiary of the first trust, except as provided in subsection (d) of this section; (2) include as a presumptive remainder beneficiary or successor beneficiary a person who is not a current beneficiary, presumptive remainder beneficiary or successor beneficiary of the first trust, except as provided in subsection (c) of this section; or (3) reduce or eliminate a vested interest.(c) Subject to subdivision (3) of subsection (b) of this section and section 14 of this act, in an exercise of the decanting power under this section, a second trust may be a trust created or administered under the law of any jurisdiction and may: (1) Reduce or eliminate the interest of any current beneficiary, presumptive remainder beneficiary or successor beneficiary in the first trust, other than a vested interest; (2) retain a power of appointment granted in the first trust; (3) omit a power of appointment granted in the first trust, other than a presently exercisable general power of appointment; (4) create or modify a power of appointment if the powerholder is a current beneficiary of the first trust and the authorized fiduciary has expanded distributive discretion to distribute principal to the beneficiary; and (5) create or modify a power of appointment if the powerholder is a presumptive remainder beneficiary or successor beneficiary of the first trust, but the exercise of the power may take effect only after the powerholder becomes, or would have become if then living, a current beneficiary.(d) A power of appointment described in subdivisions (2) to (5), inclusive, of subsection (c) of this section, may be general or nongeneral. The class of permissible appointees in favor of which the power may be exercised may be broader than or different from the beneficiaries of the first trust.(e) If an authorized fiduciary has expanded distributive discretion over part but not all of the principal of a first trust, the fiduciary may exercise the decanting power under this section over that part of the principal over which the authorized fiduciary has expanded distributive discretion.Conn. Gen. Stat. § 34-NEW
Added by P.A. 24-0104,S. 11 of the Connecticut Acts of the 2024 Regular Session, eff. 1/1/2025.