72-39-220. Terms of second trust
72-39-220. Terms of second trust. A reference in Title 72, chapter 38, to a trust instrument or terms of the trust includes a second-trust instrument and the terms of the second trust. History: En. Sec. 24, Ch. 177, L. 2021.
72-39-221. Settlor
72-39-221. Settlor. (1) For purposes of law of this state other than this chapter and subject to subsection (2), a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the principal of the first trust subject to the exercise of the decanting power. (2) In […]
72-39-222. Later-discovered property
72-39-222. Later-discovered property. (1) Except as otherwise provided in subsection (3), if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust and property paid to or acquired by the first trust after the exercise of the […]
72-39-223. Obligations
72-39-223. Obligations. A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the second trust after exercise of the decanting power. History: En. Sec. 27, Ch. 177, L. 2021.
72-39-213. Relief from liability and indemnification
72-39-213. Relief from liability and indemnification. (1) Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument. (2) A second-trust instrument may provide for indemnification of an authorized fiduciary of the first trust or another person acting […]
72-39-214. Removal or replacement of authorized fiduciary
72-39-214. 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 fiduciary unless: (1) the person holding the power consents to the modification in a signed record and the modification applies only to the person; […]
72-39-215. Tax-related limitations
72-39-215. Tax-related limitations. (1) In this section: (a) ”Grantor trust” means a trust as to which a settlor of a first trust is considered the owner under 26 U.S.C. 671 through 677, as amended, or 26 U.S.C. 679, as amended. (b) ”Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended. (c) ”Nongrantor trust” means […]
72-39-216. Duration of second trust
72-39-216. Duration of second trust. (1) Subject to subsection (2), a second trust may have a duration that is the same as or different from the duration of the first trust. (2) To the extent that property of a second trust is attributable to property of the first trust, the property of the second trust is subject […]
72-39-217. Need to distribute not required
72-39-217. 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 fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of the exercise. History: En. Sec. 21, Ch. 177, L. 2021.
72-39-218. Saving provision
72-39-218. Saving provision. (1) If exercise of the decanting power would be effective under this chapter except that the second-trust instrument in part does not comply with this chapter, the exercise of the power is effective and the following rules apply with respect to the principal of the second trust attributable to the exercise of the […]