The bill amends Chapter 203E of the General Laws to establish the Massachusetts Uniform Trust Decanting Act, which provides a structured framework for the decanting of trusts. It introduces definitions for key terms such as "authorized fiduciary," "current beneficiary," and "decanting power," allowing authorized fiduciaries to transfer property from a first trust to one or more second trusts while adhering to their duties and the original trust's purposes. The act outlines the necessary notice requirements for beneficiaries and the court's oversight role in the decanting process. Additionally, it modifies existing definitions and provisions, including the deletion of certain paragraphs in Section 110 and the insertion of new definitions in Section 902, clarifying the act's applicability to both irrevocable and revocable trusts under specific conditions.

Furthermore, the bill details the management of second trusts, including their duration and the treatment of animal trusts, while ensuring that any property derived from the first trust complies with rules regarding perpetuity and alienation. It emphasizes the protection of charitable interests during the decanting process and mandates that second trusts meet tax-related limitations to maintain eligibility for tax benefits. The bill also addresses fiduciary compensation, liability, and the removal or replacement of authorized fiduciaries, ensuring that modifications through decanting do not violate the first trust's terms. A saving provision is included to maintain the effectiveness of decanting power even if the second trust's instrument partially fails to comply with the article's requirements. The act is set to take effect on January 1, 2026.