Bill > H4330

This bill establishes the Massachusetts Uniform Trust Decanting Act, which provides a legal framework for trustees to modify existing trusts under certain circumstances. The act allows an authorized fiduciary (a trustee with discretionary powers) to transfer property from an existing trust (called the "first trust") to a new trust (called the "second trust") or modify the terms of the existing trust, even without court approval in many cases. The bill includes detailed provisions to protect beneficiaries' interests, including specific rules about maintaining similar beneficial interests for beneficiaries, protecting charitable interests, and preserving tax benefits. Key protections include requiring notice to qualified beneficiaries before exercising the decanting power, prohibiting reduction of vested interests, and ensuring that changes do not negatively impact beneficiaries' rights. The act applies to irrevocable trusts and trusts that can only be revoked with trustee or adverse party consent, and includes special provisions for trusts with beneficiaries with disabilities and trusts holding special types of property like S corporation stock. Notably, the act provides trustees with flexibility to adapt trusts to changing circumstances while maintaining important safeguards for beneficiaries. The legislation will take effect on January 1, 2026.

Budget and Finance

Joint Committee on the Judiciary (Joint)

https://malegislature.gov/Bills/194/H4330