Decanting a Trust

Decanting a trust is the act of distributing assets from an old, irrevocable trust to a new one with more favorable terms. There are a number of scenarios that may call for decanting, including where a trust calls for staggered distributions at different ages for the beneficiary, when the client would be better served if a new trust was drawn up as a dynasty trust so that multiple generations in the future can receive creditor, divorce and bankruptcy protection, as well as protection from estate taxes. Generally, decanting is useful for inadequate trusts in need of revision.
Also, a client may wish to bifurcate the trustee’s responsibilities so that an investment adviser can oversee the trust’s investments. One can decant and divide the duty to allow the adviser to direct the investments, while the trustee holds all non-investment related activities. Also, the registered investment adviser (RIA) on the trust does not have to be based in the domiciliary state of the trust.

By | 2018-08-19T19:10:42-08:00 April 10th, 2018|Categories: Estate Plans|

Learn how we can help

San Francisco

(415) 983-0717

Los Altos

(650) 200-7393

Call Now Button