Bill > S1112

This bill establishes the Massachusetts Uniform Trust Decanting Act, which provides a comprehensive legal framework for trustees to modify existing trusts under certain conditions. The act allows an authorized fiduciary (typically a trustee) to exercise a "decanting power," which means they can distribute the property of an existing trust (called the "first trust") to one or more new trusts (called "second trusts") or modify the terms of the existing trust. The legislation provides detailed guidelines for when and how trustees can use this power, including protections for beneficiaries and specific rules for different types of trusts, such as those with charitable interests or trusts for beneficiaries with disabilities. Key provisions include requiring notice to beneficiaries before exercising the decanting power, establishing fiduciary duties during the process, and implementing safeguards to ensure that the original trust's purposes and beneficiaries' interests are substantially maintained. The bill also includes extensive provisions to protect tax benefits, charitable interests, and special needs trusts, and it allows trustees to modify trusts without necessarily needing court approval, though court involvement remains an option. The act will take effect on January 1, 2026, providing time for legal professionals and trustees to understand and prepare for its implementation.

Budget and Finance, Justice

https://malegislature.gov/Bills/194/S1112