Government of the District of Columbia
UNIFORM LAW COMMISSION
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March 16, 2023
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
The John A. Wilson Building,
1350 Pennsylvania Avenue, NW
Washington, DC 20004
RE: Request for introduction of the Uniform Trust Decanting Act of 2023.
Dear Chairman Mendelson:
Pursuant to Rule 401(b)(1) of the Rules of Organization and Procedure for the
Council, this is to request, on behalf of the District of Columbia Uniform Law
Commission, that you introduce the proposed “Uniform Trust Decanting Act of 2023.”
This Act is one of three related uniform acts concerning trusts that are being transmitted
today.
The Uniform Trust Decanting Act provides clear rules for a trustee’s distribution
of assets from one irrevocable trust to another irrevocable trust. Decanting can be used
for many purposes, including to address changed circumstances that were not anticipated
by settlor who created the trust. Examples include conforming the trust to the
requirements of a supplemental needs trust for a beneficiary who becomes disabled; to
change the situs of the trust; to combine trusts for greater efficiency; and to avoid adverse
tax consequences.
The Act (1) provides clear statutory rules replacing often murky common-law
decisions; (2) provides appropriate limits on a trustee’s ability to decant to ensure that the
settlor’s intent is carried out; (3) protects beneficiaries by requiring notice and protecting
all vested interests; (4) provides that charitable interests may not be reduced or
eliminated; and (5) protects successor trustees from liability for a previous trustee’s
decanting by allowing a trustee that assumes management of a previously decanted trust
to rely on the validity of the previous decanting, without risk of incurring liability for the
previous trustee’s actions. The Act makes decanting easier and safer. For example, a
trustee may “decant” by restating the existing trust document, avoiding the need to draft
an entirely new trust and apply for a new tax identification number when only a small
administrative change is intended.
 The Uniform Trust Decanting Act was completed by the National Conference of
Commissioners on Uniform State Laws in 2015. Is has been enacted in 13 states,
including Virginia, and has been introduced in an additional three states this year.
A proposed “Uniform Trust Decanting Act of 2023” is being filed with this letter.
In addition, the following documents have been filed: (1) a summary of the Uniform
Trust Decanting Act; (2) a statement as to why the Uniform Trust Decanting Act should
be adopted; and (3) the official version of the Uniform Trust Decanting Act, with
comments.
I would be pleased to answer any questions and to provide any additional
information requested.
Sincerely,
James C. McKay, Jr.
Chair
D.C. Uniform Law Commission
cc: Uniform Law Commissioners
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 ~obernment of tbt 3Bi•trtct of €olumbia
UNIFORM LAW COMMISSION
***
March 16, 2023
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
The John A. Wilson Building,
1350 Pennsylvania Avenue, NW
Washington, DC 20004
RE: Request for introduction of the Uniform Trust Decanting Act of 2023.
Dear Chairman Mendelson:
Pursuant to Rule 401 (b)( 1) of the Rules of Organization and Procedure for the
Council, this is to request, on behalf of the District of Columbia Uniform Law
Commission, that you introduce the proposed "Uniform Trust Decanting Act of 2023."
This Act is one of three related uniform acts concerning trusts that are being transmitted
today.
The Uniform Trust Decanting Act provides clear rules for a trustee's distribution
of assets from one irrevocable trust to another irrevocable trust. Decanting can be used
for many purposes, including to address changed circumstances that were not anticipated
by settlor who created the trust. Examples include conforming the trust to the
requirements of a supplemental needs trust for a beneficiary who becomes disabled; to
change the situs of the trust; to combine trusts for greater efficiency; and to avoid adverse
tax consequences.
The Act (1) provides clear statutory rules replacing often murky common-law
decisions; (2) provides appropriate limits on a trustee's ability to decant to ensure that the
settlor's intent is carried out; (3) protects beneficiaries by requiring notice and protecting
all vested interests; (4) provides that charitable interests may not be reduced or
eliminated; and (5) protects successor trustees from liability for a previous trustee's
decanting by allowing a trustee that assumes management of a previously decanted trust
to rely on the validity of the previous decanting, without risk of incurring liability for the
previous trustee's actions. The Act makes decanting easier and safer. For example, a
trustee may "decant" by restating the existing trust document, avoiding the need to draft
an entirely new trust and apply for a new tax identification number when only a small
administrative change is intended.
 The Uniform Trust Decanting Act was completed by the National Conference of
Commissioners on Uniform State Laws in 2015. Is has been enacted in 13 states,
including Virginia, and has been introduced in an additional three states this year.
A proposed "Uniform Trust Decanting Act of 2023" is being filed with this letter.
In addition, the following documents have been filed: ( 1) a summary of the Uniform
Trust Decanting Act; (2) a statement as to why the Uniform Trust Decanting Act should
be adopted; and (3) the official version of the Uniform Trust Decanting Act, with
comments.
I would be pleased to answer any questions and to provide any additional
information requested. '
Sincerely,
James C. McKay, Jr.
Chair
D.C. Uniform Law Commission
cc: Uniform Law Commissioners
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 2
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4 n Phil Mendelson at the request of the
5 District of Columbia Uniform Law Commission
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10 A BILL
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14 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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16 To amend Title 19 of the District of Columbia Official Code by adding a new Chapter 19 to
17 enact the Uniform Trust Decanting Act to provide clear rules pursuant to which a trustee,
18 acting in accordance with fiduciary duties, may modify the terms of a trust to address
19 unanticipated changes in beneficiary circumstances and other changes to effectuate the
20 settlor's general intent; to provide appropriate limits on a trustee's ability to decant; to
21 protect beneficiaries by requiring notice and providing that their interests may not be
22 reduced; to protect charitable interests by providing that they may not be reduced and
23 requiring notice of a protect decanting to the Attorney General; to protect trustees from
24 liability from a previous trustee's decanting; and for other purposes.
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26 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
27 act may be cited as the "Uniform Trust Decanting Act of 2023."
28 Sec. 2. Title 19 of the District of Columbia Official Code is amended as follows:
29 (a) The table of contents is amended by adding the following new chapter reference:
30 "19. Uniform Trust Decanting Act."
31 (b) The following new chapter is added to read as follows:
32 "Chapter 19. Uniform Trust Decanting Act
33 "Sec.
34 "19-1901. Short title.
35 "19-1902. Definitions.
36 "19-1903. Scope.
37 "19-1904. Fiduciary duty.
38 "19-1905. Application; governing law.
39 "19-1906. Reasonable reliance.
40 "19-1907. Notice; exercise of decanting power.
41 "19-1908. Representation.
42 "19-1909. Court involvement.
43 "19-1910. Formalities.
44 "19-1911. Decanting power under expanded distributive discretion.
45 "19-1912. Decanting power under limited distributive discretion.
46 "19-1913. Trust for beneficiary with disability.
47 "19-1914. Protection of charitable interest.
48 "19-1915. Trust limitation on decanting.
49 "19-1916. Change in compensation.
50 "19-1917. Relief from liability and indemnification.
51 "19-1918. Removal or replacement of authorized fiduciary.
52 "19-1919. Tax-related limitations.
53 "19-1920. Duration of second trust.
54 "19-1921. Need to distribute not required.
55 "19-1922. Saving provision.
56 "19-1923. Trust for care of animal.
57 "19-1924. Terms of second trust.
58 "19-1925. Settlor.
59 "19-1926. Later-discovered property.
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 83 "(C) Is an identified charitable organization that will or may receive distributions
84 under the terms of the trust.
85 "( 6) "Charitable interest" means an interest in a trust which:
86 "(A) Is held by an identified charitable organization and makes the organization a
87 qualified beneficiary;
88 "(B) Benefits only charitable organizations and, if the interest were held by an
89 identified charitable organization, would make the organization a qualified beneficiary; or
90 "(C) Is held solely for charitable purposes and, if the interest were held by an
91 identified charitable organization, would make the organization a qualified beneficiary.
92 "(7) "Charitable organization" means:
93 "(A) A person, other than an individual, organized and operated exclusively for
94 charitable purposes; or
95 "(B) A government or governmental subdivision, agency, or instrumentality, to
96 the extent it holds funds exclusively for a charitable purpose.
97 "(8) "Charitable purpose" means the relief of poverty, the advancement of education or
98 religion, the promotion of health, a municipal or other governmental purpose, or another purpose
99 the achievement of which is beneficial to the community.
100 "(9) "Court" means the Superior Court of the District of Columbia.
101 "(10) "Current beneficiary" means a beneficiary that on the date the beneficiary's
102 qualification is determined is a distributee or permissible distributee of trust income or principal.
103 The term includes the holder of a presently exercisable general power of appointment but does
104 not include a person that is a beneficiary only because the person holds any other power of
105 appointment.
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I 06 "( 11) "Decanting power" or "the decanting power" means the power of an authorized
107 fiduciary under this chapter to distribute property of a first trust to one or more second trusts or
108 to modify the terms of the first trust.
109 "(12) "District" means the District of Columbia.
110 "(13) "Expanded distributive discretion" means a discretionary power of distribution that
111 is not limited to an ascertainable standard or a reasonably definite standard.
112 "(14) "First trust" means a trust over which an authorized fiduciary may exercise the
113 decanting power.
114 "( 15) "First-trust instrument" means the trust instrument for a first trust.
115 "( 16) "General power of appointment" means a power of appointment exercisable in
116 favor of a powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor of
117 the powerholder's estate.
118 "(17) "Jurisdiction", with respect to a geographic area, includes a state or country.
119 "(18) "Person" means an individual, estate, business or nonprofit entity, public
120 corporation, government or governmental subdivision, agency, or instrumentality, or other legal
121 entity.
122 "(19) "Power of appointment" means a power that enables a powerholder acting in a
123 nonfiduciary capacity to designate a recipient of an ownership interest in or another power of
124 appointment over the appointive property. The term does not include a power of attorney.
125 "(20) "Powerholder" means a person in which a donor creates a power of appointment.
126 "(21) "Presently exercisable power of appointment" means a power of appointment
127 exercisable by the powerholder at the relevant time.
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128 "(A) The term includes a power of appointment exercisable only after the
129 occurrence of a specified event, the satisfaction of an ascertainable standard, or the passage of a
130 specified time only after:
131 "(i) The occurrence of the specified event;
132 "(ii) The satisfaction of the ascertainable standard; or
133 "(iii) The passage of the specified time.
134 "(B) The term does not include a power exercisable only at the powerholder's
135 death.
136 "(22) "Qualified beneficiary" means a beneficiary that on the date the beneficiary's
137 qualification is determined:
138 "(A) Is a distributee or permissible distributee of trust income or principal;
139 "(B) Would be a distributee or permissible distributee of trust income or principal
140 if the interests of the distributees described in subparagraph (A) terminated on that date without
141 causing the trust to terminate; or
142 "(C) Would be a distributee or permissible distributee of trust income or principal
143 if the trust terminated on that date.
144 "(23) "Reasonably definite standard" means a clearly measurable standard under which a
145 holder of a power of distribution is legally accountable within the meaning of 26 U.S.C. §
146 674(b)(5)(A) and any applicable regulations.
147 "(24) "Record" means information that is inscribed on a tangible medium or that is stored
148 in an electronic or other medium and is retrievable in perceivable form.
149 "(25) "Second trust" means:
150 "(A) A first trust after modification under this chapter; or
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151 "(B) A trust to which a distribution of property from a first trust is or may be
152 made under this chapter.
153 "(26) "Second-trust instrument" means the trust instrument for a second trust.
154 "(27) "Settlor", except as otherwise provided in§ 19-1925, means a person, including a
155 testator, that creates or contributes property to a trust. If more than one person creates or
156 contributes property to a trust, each person is a settlor of the portion of the trust property
157 attributable to the person's contribution except to the extent another person has power to revoke
158 or withdraw that portion.
159 "(28) "Sign" means, with present intent to authenticate or adopt a record:
160 "(A) To execute or adopt a tangible symbol; or
161 "(B) To attach to or logically associate with the record an electronic symbol,
162 sound, or process.
163 "(29) "State" means a state of the United States, the District, Puerto Rico, the United
164 States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the
165 United States.
166 "(30) "Terms of a trust" means:
167 "(A) Except as otherwise provided in subparagraph (B), the manifestation of the
168 settlor's intent regarding a trust's provisions as:
169 "(i) Expressed in the trust instrument; or
170 "(ii) Established by other evidence that would be admissible in a judicial
171 proceeding; or
172 "(B) The trust's provisions as established, determined, or amended by:
173 "(i) A trustee or trust director in accordance with applicable law;
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174 "(ii) Court order; or
175 "(iii) A nonjudicial settlement agreement under § 19-1301.11.
176 "(31) 'Trust instrument" means a record executed by the settlor to create a trust or by any
177 person to create a second trust which contains some or all of the terms of the trust, including any
178 amendments.
179 "§ 19-1903. Scope.
180 "(a) Except as otherwise provided in subsections (b) and (c) of this section, this chapter
181 applies to an express trust that is irrevocable or revocable by the settlor only with the consent of
182 the trustee or a person holding an adverse interest.
183 "(b) This chapter does not apply to a trust held solely for charitable purposes.
184 "( c) Subject to § 19-1915, a trust instrument may restrict or prohibit exercise of the
185 decanting power.
186 "(d) This chapter does not limit the power of a trustee, powerholder, or other person to
187 distribute or appoint property in further trust or to modify a trust under the trust instrument, law
188 of the District other than this chapter, common law, a court order, or a nonjudicial settlement
189 agreement.
190 "( e) This chapter does not affect the ability of a settlor to provide in a trust instrument for
191 the distribution of the trust property or appointment in further trust of the trust property or for
192 modification of the trust instrument.
193 "§ 19-1904. Fiduciary duty.
194 "(a) In exercising the decanting power, an authorized fiduciary shall act in accordance
195 with its fiduciary duties, including the duty to act in accordance with the purposes of the first
196 trust.
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197 "(b) This chapter does not create or imply a duty to exercise the decanting power or to
198 inform beneficiaries about the applicability of this chapter.
199 "( c) Except as otherwise provided in a first-trust instrument, for purposes of this chapter
200 and §§ 19-1308.01 and 19-1308.02(a), the terms of the first trust are deemed to include the
201 decanting power.
202 "§ 19-1905. Application; governing law.
203 'This chapter applies to a trust created before, on, or after the effective date of this
204 chapter which:
205 "( 1) Has its principal place of administration in the District, including a trust whose
206 principal place of administration has been changed to the District; or
207 "(2) Provides by its trust instrument that it is governed by the law of the District or is
208 governed by the l