In the February 2013 edition of Wealth Management Insider,
Patricia discusses “trust decanting” – a viable option for those who want to
change their irrevocable trust. According to Patricia’s article, decanting a
trust is a mechanism by which the trustee of an irrevocable trust, known as the
“distributing trust,” transfers assets to another irrevocable trust, known as
the “receiving trust.” The ability of a trustee to make this distribution
exists, depending on the jurisdiction, by a statutory power, a common law power
or a power in the trust instrument to make such a distribution, or by the
exercise of a power of appointment to make the distribution. These powers are
commonly known as “decanting powers.”
Click here to read more about the factors involved in deciding whether to decant an irrevocable trust, and the various implications to this decision.