Section 34-NEW - [Newly enacted section not yet numbered] [Effective 1/1/2025] Decanting power under limited distributive discretion(a) As used in this section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard.(b) An authorized fiduciary that has limited distributive discretion over the principal of the first trust for the benefit of one or more current beneficiaries may exercise the decanting power over the principal of the first trust.(c) In an exercise of the decanting power under this section, a second trust may not: (1) Have different current beneficiaries, presumptive remainder beneficiaries or successor beneficiaries from the first trust; (2) modify the limited distributive discretion standard from the first trust, except as provided in subsection (d) of this section; (3) modify a power of appointment granted in the first trust; or (4) reduce or eliminate a vested interest.(d) Subject to subdivision (4) of subsection (c) 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 if the second trust extends the term of the first trust in accordance with section 20 of this act, the second trust may, with respect to any period after the first trust would have otherwise terminated under the provisions of the first trust, modify the limited distributive discretion standard in the first trust including to expanded distributive discretion standard.(e) If an authorized fiduciary has limited 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 limited distributive discretion.Conn. Gen. Stat. § 34-NEW
Added by P.A. 24-0104,S. 12 of the Connecticut Acts of the 2024 Regular Session, eff. 1/1/2025.