Bill > H1856

This bill introduces the Massachusetts Uniform Trust Decanting Act, which provides a legal framework for trustees to modify or redistribute trust assets under certain conditions. The act allows an authorized fiduciary (a trustee with discretionary distribution powers) to exercise a "decanting power," which means transferring some or all of the principal from an existing trust (the first trust) to a new trust (the second trust) with potentially modified terms. The bill establishes detailed rules and protections for this process, including requirements for notice to beneficiaries, restrictions on changing beneficiary interests, and safeguards to preserve tax benefits and special needs provisions. Key provisions include allowing decanting with expanded or limited distributive discretion, protecting charitable interests, maintaining tax qualifications, and ensuring that the fiduciary acts in accordance with their fundamental duties. The act applies to irrevocable trusts and trusts revocable only with trustee consent, and provides mechanisms for court involvement if needed. Importantly, the bill allows trustees flexibility in trust management while establishing clear guidelines to prevent abuse and protect beneficiaries' interests. The act will take effect on January 1, 2026, giving trustees, legal professionals, and financial planners time to understand and prepare for its implementation.

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https://malegislature.gov/Bills/194/H1856