The proposed bill seeks to adopt the Uniform Trust Decanting Act in Arkansas by introducing Chapter 78 to the Arkansas Code, which outlines the definitions, scope, and procedures for the decanting power of trusts. This allows authorized fiduciaries to transfer property from one trust to another or modify the terms of the original trust. Key definitions are established, including "authorized fiduciary," "current beneficiary," and "decanting power," which clarify the roles of those involved in trust management. The bill mandates that fiduciaries must act in accordance with their duties and provide notice to relevant parties before exercising the decanting power, applicable to both irrevocable and revocable trusts, with exceptions for charitable trusts.

Additionally, the bill introduces provisions that enhance the management of trusts, including the ability for courts to provide instructions to fiduciaries and approve decanting actions. It emphasizes the protection of charitable interests, ensuring that any second trust created through decanting does not diminish these interests. The legislation also addresses tax-related limitations, the duration of the second trust, and the establishment of animal trusts, defining an "animal trust" and the role of a "protector." The bill ensures that obligations against the first trust's property remain enforceable against the second trust's property and aims for uniform application across states, with an effective date of January 1, 2026.