Trust Decanting: A Collection of Coverage and Analysis


With respect to trusts, "decanting" is the term generally used to describe the distribution of trust property from one trust to another pursuant to a trustee’s discretionary power to make distributions to or for the benefit of one or more beneficiaries. A trustee’s power to decant may exist under state statute, common law, or the terms of the trust instrument that authorize the trustee to appoint income or principal in further trust for the benefit of trust beneficiaries.

Trust decanting raises a variety of transfer tax implications, which may vary with the particular structure or form of the decanting, from gift tax considerations involved with decantings by trustees who are also beneficiaries of the trust, to the GST tax consequences of extending the term of the trust, to the estate tax considerations of removing a general power of appointment.

This special report covers many of these issues. Download this special report now.