The proposed bill seeks to adopt the Uniform Trust Decanting Act in Arkansas by introducing Chapter 78 to the Arkansas Code Title 28. This chapter establishes a legal framework for the decanting power of trusts, allowing authorized fiduciaries to transfer property from one trust to another or modify the terms of the original trust. Key provisions include definitions of important terms such as "authorized fiduciary," "current beneficiary," and "qualified beneficiary," which clarify the roles and rights of individuals involved in trust management. The bill applies to both irrevocable and revocable trusts, with specific protections for charitable interests, ensuring that decanting actions do not diminish these interests or alter their stated purposes.

Additionally, the bill amends existing laws regarding fiduciary responsibilities and the decanting process, allowing fiduciaries to act even if the first-trust instrument permits modifications. It includes provisions for liability and indemnification, ensuring that fiduciaries cannot be relieved of liability beyond what is established in the first trust. The legislation also addresses the establishment of animal trusts, allowing decanting powers to be exercised with the consent of a protector, and provides guidelines for handling later-discovered property. The new chapter is set to take effect on January 1, 2026, and emphasizes the need for uniformity in trust management practices across states.