§1201. Short title This Act may be known and cited as “the Maine Uniform Trust Decanting Act.” Any references in this chapter to “Act” mean “the Maine Uniform Trust Decanting Act.” [PL 2021, c. 235, §1 (NEW).] SECTION HISTORY PL 2021, c. 235, §1 (NEW).
§1202. Definitions As used in this Act, unless the context otherwise indicates, the following terms have the following meanings. [PL 2021, c. 235, §1 (NEW).] 1. Appointive property. “Appointive property” means the property or property interest subject to a power of appointment. [PL 2021, c. 235, §1 (NEW).] 2. Ascertainable standard. “Ascertainable standard” […]
§1203. Scope 1. Express trust. Except as otherwise provided in subsections 2 and 3, this Act applies to an express trust that is irrevocable or revocable by the settlor only with the consent of the trustee or a person holding an adverse interest. [PL 2021, c. 235, §1 (NEW).] 2. Trust solely for charitable […]
§1204. Fiduciary duty 1. Act in accordance with fiduciary duty. In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust. [PL 2021, c. 235, §1 (NEW).] 2. No duty to exercise power; inform beneficiaries. […]
§1205. Application; governing law 1. This State. This Act applies to a trust that: A. Has its principal place of administration in this State, including a trust whose principal place of administration has been changed to this State; or [PL 2021, c. 235, §1 (NEW).] B. Provides by its trust instrument that it […]
§1206. Reasonable reliance A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under this Act, a law of this State other than this Act or the law of another jurisdiction is […]
§1207. Notice; exercise of decanting power 1. Notice period. For purposes of this section, a notice period begins on the day notice is given under subsection 3 and ends 59 days after the day notice is given. [PL 2021, c. 235, §1 (NEW).] 2. Exercise without consent or approval. Except as otherwise provided in […]
§1208. Court involvement 1. Application to court. On application of an authorized fiduciary, a person entitled to notice under section 1207, subsection 3, a beneficiary or, with respect to a charitable interest, the Attorney General, the court may: A. Provide instructions to the authorized fiduciary regarding whether a proposed exercise of the decanting power […]
§1209. Formalities An exercise of the decanting power must be made in a record signed by an authorized fiduciary. The signed record must, directly or by reference to the notice required by section 1207, identify the first trust and the 2nd trust or trusts and state the property of the first trust being distributed to […]
§1210. Decanting power under expanded distributive discretion 1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. “Noncontingent right” means a right that is not subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. […]
§1211. Decanting power under limited distributive discretion 1. Limited distributive discretion defined. For purposes of this section, “limited distributive discretion” means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard. [PL 2021, c. 235, §1 (NEW).] 2. Limited distributive discretion over principal. An authorized fiduciary that […]
§1212. Trust for beneficiary with disability 1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. “Beneficiary with a disability” means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the […]
§1213. Protection of charitable interest 1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. “Determinable charitable interest” means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a specified event or after the passage of […]
§1214. Trust limitation on decanting 1. Decanting power prohibited. An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: A. The decanting power; or [PL 2021, c. 235, §1 (NEW).] B. A power granted by state law to the authorized fiduciary to distribute part […]
§1215. Change in compensation 1. Compensation specified. If a first-trust instrument specifies an authorized fiduciary’s compensation, the authorized fiduciary may not exercise the decanting power to increase the authorized fiduciary’s compensation above the specified compensation unless: A. All qualified beneficiaries of the 2nd trust consent to the increase in a signed record; or […]
§1216. Relief from liability and indemnification 1. Liability for breach of trust. Except as otherwise provided in this section, a 2nd-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument does. [PL 2021, c. 235, §1 (NEW).] 2. Indemnification for claim otherwise […]
§1217. Removal or replacement of authorized fiduciary An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the authorized fiduciary unless: [PL 2021, c. 235, §1 (NEW).] 1. Person holding power consents. The person holding the power to remove […]
§1218. Tax-related limitations 1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. “Grantor trust” means a trust as to which a settlor of a first trust is considered the owner under 26 United States Code, Sections 671 to 677 or 26 United States […]
§1219. Duration of 2nd trust 1. Duration. Subject to subsection 2, a 2nd trust may have a duration that is the same as or different from the duration of the first trust. [PL 2021, c. 235, §1 (NEW).] 2. Rules applicable to property. To the extent that property of a 2nd trust is attributable […]
§1220. Need to distribute not required An authorized fiduciary may exercise the decanting power whether or not, under the first trust’s discretionary distribution standard, the authorized fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of the exercise. [PL 2021, c. 235, §1 (NEW).] […]
