Section 1214 - Trust limitation on decanting1.Decanting power prohibited. An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of:A. The decanting power; or [2021, c. 235, §1(NEW).]B. A power granted by state law to the authorized fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust. [2021, c. 235, §1(NEW).][2021, c. 235, §1(NEW).]
2.Decanting power restricted. Exercise of the decanting power is subject to any restriction in the first-trust instrument that expressly applies to exercise of:A. The decanting power; or [2021, c. 235, §1(NEW).]B. A power granted by state law to an authorized fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust. [2021, c. 235, §1(NEW).][2021, c. 235, §1(NEW).]
3.Decanting power not precluded. A general prohibition on amendment or revocation of a first trust, a spendthrift provision or a clause restraining the voluntary or involuntary transfer of a beneficiary's interest does not preclude exercise of the decanting power.[2021, c. 235, §1(NEW).]
4.First trust permits modification or distribution. Subject to subsections 1 and 2, an authorized fiduciary may exercise the decanting power pursuant to this Act even if the first-trust instrument permits the authorized fiduciary or another person to modify the first-trust instrument or to distribute part or all of the principal of the first trust to another trust.[2021, c. 235, §1(NEW).]
5.Express prohibition or restriction included in 2nd trust. If a first-trust instrument contains an express prohibition described in subsection 1 or an express restriction described in subsection 2, the provision must be included in the 2nd-trust instrument.[2021, c. 235, §1(NEW).]
Added by 2021SP1, c. 235,§ 1, eff. 10/18/2021.