North Carolina Uniform Trust Decanting Act

Trust decanting is the subject: the act authorizes a trustee or other authorized fiduciary who holds discretion to distribute trust property to exercise that discretion by distributing the property into a second trust instead, thereby modifying the terms on which it is held without terminating the arrangement. How far the power reaches depends on how broad the fiduciary's distributive discretion is, and its exercise is bounded by fiduciary duty, prescribed formalities, advance notice to interested parties, and a defined role for the courts. The act also protects interests that decanting could otherwise diminish — charitable interests, trusts for beneficiaries with disabilities and for the care of animals, and tax-sensitive terms — and bars a fiduciary from using the power to increase its own compensation or broaden its own relief from liability.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.