Elements Of Trust Decanting (2015)
2.0 TOTAL CREDITS: 1.0 professional practice; 1.0 skills
Trust decanting, or the exercise by a trustee of the power to distribute principal to the beneficiaries by distributing some or all of the trust property to a new trust established by the trustee, has become a powerful tool for modifying otherwise indestructible trusts to better carry out the settlor’s intent, provide for the changed needs of the beneficiaries, or take advantage of changes in the tax laws.
In 1992, New York was the first state to enact a statute (EPTL 10-6.6(b) et seq.) creating a framework for the exercise of a trustee’s power to appoint trust property in favor of another trust. With amendments in 2011 and 2013, the statute now provides a clear road map for using the power to decant to achieve a wide variety of modifications to irrevocable trusts.
Decanting is a flexible, cost-effective, and straightforward tool for making trusts work better, and practitioners should be aware of how to use it.
In this two hour presentation, noted authority William P. LaPiana will review the required procedures and rules to follow in effectively decanting a trust and will highlight practical considerations important for estate planners and counselors, such as:
* Are all trusts eligible for decanting?
* What are the most common reasons to decanting a trust?
* Is it required, or at least recommended, to get approval from the trust beneficiaries to decant
* How closely must the dispostive terms of the appointed trust resemble those of the invaded trust? Can the interests of the current beneficiaries be changed? What about the remainder beneficiaries? Must powers of appointment granted in the invaded trust be continued in the appointed trust?
* Can more favorable tax treatment, both federal and New York State, be accomplished by decanting?
* Can trustees be added, or their responsibilities be changed, by decanting to a new trust?
This seminar will give you a solid grounding in the understanding and potential uses of this versatile and effective tool.
About the speaker:
William P. LaPiana is the Rita and Joseph Solomon Professor of Wills, Trusts, and Estates, and Director of Estate Planning in the Graduate Tax Program at New York Law School.
Professor LaPiana also has been active with the trusts and estates sections of both the New York State and the American Bar Associations, and is an academic fellow of the American College of Trust and Estate Counsel. He is also a member of the American Law Institute and served on the Members Consultative Groups for the Restatements (Third) of Trusts and of Property (Donative Transfers). Since 2009 he has been a member of the Office of Court Administration Surrogate’s Court Committee, served six years on the New York City Bar Association’s Surrogate’s Court and Trusts and Estate Committee and is currently a member of the Associations’ Committee on Estate and Gift Taxation.
Total Credits: 2.00 | Areas of Professional Practice: 1.00, Skills: 1.00