Decanting and its Alternatives: Remodeling and Revamping Irrevocable Trusts
Posted: 13 Apr 2016
Date Written: April 11, 2010
Trust decanting is the process of distributing a trust estate of an irrevocable trust to the trustee of a new trust. Recognized under the common law and now statutorily by ten states, decanting can achieve a number of goals and objectives, from correcting drafting errors to responding to beneficiaries’ changed circumstances or objectives. Procedural requirements, fiduciary considerations, and tax issues will be explored.
Keywords: trusts, decanting, GST, gift tax, fiduciary, reformation
JEL Classification: K19
Suggested Citation: Suggested Citation