APPROVED CHAPTER
JUNE 16, 2021 235
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-ONE
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H.P. 306 - L.D. 422
An Act To Enact the Maine Uniform Trust Decanting Act
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 18-B MRSA c. 12 is enacted to read:
CHAPTER 12
MAINE UNIFORM TRUST DECANTING ACT
§1201. Short title
This Act may be known and cited as "the Maine Uniform Trust Decanting Act." Any
references in this chapter to "Act" mean "the Maine Uniform Trust Decanting Act."
§1202. Definitions
As used in this Act, unless the context otherwise indicates, the following terms have
the following meanings.
1. Appointive property. "Appointive property" means the property or property
interest subject to a power of appointment.
2. Ascertainable standard. "Ascertainable standard" means a standard relating to an
individual's health, education, support or maintenance within the meaning of 26 United
States Code, Section 2041(b)(1)(A), as amended, or 26 United States Code, Section
2514(c)(1), as amended, and any applicable regulations.
3. Authorized fiduciary. "Authorized fiduciary" means:
A. A trustee or other fiduciary, other than a settlor, that has discretion to distribute or
direct a trustee to distribute part or all of the principal of the first trust to one or more
current beneficiaries;
B. A special fiduciary appointed under section 1208; or
C. A special-needs fiduciary under section 1212.
4. Beneficiary. "Beneficiary" means a person that:
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 A. Has a present or future, vested or contingent, beneficial interest in a trust;
B. Holds a power of appointment over trust property; or
C. Is an identified charitable organization that will or may receive distributions under
the terms of the trust.
5. Charitable interest. "Charitable interest" means an interest in a trust that:
A. Is held by an identified charitable organization and makes the organization a
qualified beneficiary;
B. Benefits only charitable organizations and, if the interest were held by an identified
charitable organization, would make the identified charitable organization a qualified
beneficiary; or
C. Is held solely for charitable purposes and, if the interest were held by an identified
charitable organization, would make the identified charitable organization a qualified
beneficiary.
6. Charitable organization. "Charitable organization" means:
A. A person, other than an individual, organized and operated exclusively for
charitable purposes; or
B. A government or governmental subdivision, agency or instrumentality, to the extent
it holds funds exclusively for a charitable purpose.
7. Charitable purpose. "Charitable purpose" means the relief of poverty, the
advancement of education or religion, the promotion of health, a municipal or other
governmental purpose or another purpose the achievement of which is beneficial to the
community.
8. Court. "Court" means the applicable court in this State having jurisdiction in
matters relating to trusts.
9. Current beneficiary. "Current beneficiary" means a beneficiary that on the date
the beneficiary's qualification is determined is a distributee or permissible distributee of
trust income or principal. "Current beneficiary" includes the holder of a presently
exercisable general power of appointment but does not include a person that is a beneficiary
only because the person holds any other power of appointment.
10. Decanting power. "Decanting power" means the power of an authorized fiduciary
under this Act to distribute property of a first trust to one or more 2nd trusts or to modify
the terms of the first trust.
11. Expanded distributive discretion. "Expanded distributive discretion" means a
discretionary power of distribution that is not limited to an ascertainable standard or a
reasonably definite standard.
12. First trust. "First trust" means a trust over which an authorized fiduciary may
exercise the decanting power.
13. First-trust instrument. "First-trust instrument" means the trust instrument for a
first trust.
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 14. General power of appointment. "General power of appointment" means a power
of appointment exercisable in favor of a powerholder, the powerholder's estate, a creditor
of the powerholder or a creditor of the powerholder's estate.
15. Person. "Person" means an individual, estate, business or nonprofit entity, public
corporation, government or governmental subdivision, agency or instrumentality or other
legal entity.
16. Power of appointment. "Power of appointment" means a power that enables a
powerholder acting in a nonfiduciary capacity to designate a recipient of an ownership
interest in or another power of appointment over the appointive property. "Power of
appointment" does not include a power of attorney.
17. Powerholder. "Powerholder" means a person in which a donor creates a power
of appointment.
18. Presently exercisable power of appointment. "Presently exercisable power of
appointment" means a power of appointment exercisable by the powerholder at the relevant
time. "Presently exercisable power of appointment":
A. Includes a power of appointment not exercisable until the occurrence of a specified
event, the satisfaction of an ascertainable standard or the passage of a specified time
period only after:
(1) The occurrence of the specified event;
(2) The satisfaction of the ascertainable standard; or
(3) The passage of the specified time period; and
B. Does not include a power exercisable only at the powerholder's death.
19. Qualified beneficiary. "Qualified beneficiary" means a beneficiary that on the
date the beneficiary's qualification is determined:
A. Is a distributee or permissible distributee of trust income or principal;
B. Would be a distributee or permissible distributee of trust income or principal if the
interests of the distributees described in paragraph A terminated on that date without
causing the trust to terminate; or
C. Would be a distributee or permissible distributee of trust income or principal if the
trust terminated on that date.
20. Reasonably definite standard. "Reasonably definite standard" means a clearly
measurable standard under which a holder of a power of distribution is legally accountable
within the meaning of 26 United States Code, Section 674(b)(5)(A) and any applicable
regulations.
21. Record. "Record" means information that is inscribed on a tangible medium or
that is stored in an electronic or other medium and is retrievable in perceivable form.
22. Second trust. "Second trust" means:
A. A first trust after modification under this Act; or
B. A trust to which a distribution of property from a first trust is or may be made under
this Act.
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 23. Second-trust instrument. "Second-trust instrument" means the trust instrument
for a 2nd trust.
24. Settlor. "Settlor, " except as otherwise provided in section 1224, means a person,
including a testator, that creates or contributes property to a trust. If more than one person
creates or contributes property to a trust, each person is a settlor of the portion of the trust
property attributable to the person's contribution except to the extent another person has
power to revoke or withdraw that portion.
25. Sign. "Sign" means, with present intent to authenticate or adopt a record:
A. To execute or adopt a tangible symbol; or
B. To attach to or logically associate with the record an electronic symbol, sound or
process.
§1203. Scope
1. Express trust. Except as otherwise provided in subsections 2 and 3, this Act applies
to an express trust that is irrevocable or revocable by the settlor only with the consent of
the trustee or a person holding an adverse interest.
2. Trust solely for charitable purposes. This Act does not apply to a trust held solely
for charitable purposes.
3. Restricted or prohibited decanting power. Subject to section 1214, a trust
instrument may restrict or prohibit exercise of the decanting power.
4. Power not limited. This Act does not limit the power of a trustee, powerholder or
other person to distribute or appoint property in further trust or to modify a trust under the
trust instrument, a law of this State other than this Act, common law, a court order or a
nonjudicial settlement agreement.
5. Ability of settlor. This Act does not affect the ability of a settlor to provide in a
trust instrument for the distribution of the trust property or appointment in further trust of
the trust property or for modification of the trust instrument.
§1204. Fiduciary duty
1. Act in accordance with fiduciary duty. In exercising the decanting power, an
authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to
act in accordance with the purposes of the first trust.
2. No duty to exercise power; inform beneficiaries. This Act does not create or
imply a duty to exercise the decanting power or to inform beneficiaries about the
applicability of this Act.
3. Deemed to include decanting power. Except as otherwise provided in a first-trust
instrument, for purposes of this Act and section 801 and section 802, subsection 1, the
terms of the first trust are deemed to include the decanting power.
§1205. Application; governing law
1. This State. This Act applies to a trust that:
A. Has its principal place of administration in this State, including a trust whose
principal place of administration has been changed to this State; or
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 B. Provides by its trust instrument that it is governed by the law of this State or is
governed by the law of this State for the purpose of:
(1) Administration, including administration of a trust whose governing law for
purposes of administration has been changed to the law of this State;
(2) Construction of terms of the trust; or
(3) Determining the meaning or effect of terms of the trust.
2. Creation of trust; court proceedings. Except as otherwise provided in this Act:
A. The Act applies to a trust created before, on or after the October 1, 2021;
B. The Act applies to any proceedings in court commenced on or after October 1,
2021;
C. The Act applies to proceedings in court pending on October 1, 2021 unless the court
finds that application of a particular provision of the Act would interfere substantially
with the effective conduct of the proceeding or prejudice a right of a party, in which
case the particular provision of the Act does not apply; and
D. A rule of construction or presumption provided in the Act applies to a trust
instrument executed prior to October 1, 2021 unless there is a clear indication of a
contrary intent in the terms of the instrument.
3. Action before effective date of Act. Except as otherwise provided in subsection
2, an action done before October 1, 2021 is not affected by the Act.
§1206. Reasonable reliance
A trustee or other person that reasonably relies on the validity of a distribution of part
or all of the property of a trust to another trust, or a modification of a trust, under this Act,
a law of this State other than this Act or the law of another jurisdiction is not liable to any
person for any action or failure to act as a result of the reliance.
§1207. Notice; exercise of decanting power
1. Notice period. For purposes of this section, a notice period begins on the day notice
is given under subsection 3 and ends 59 days after the day notice is given.
2. Exercise without consent or approval. Except as otherwise provided in this Act,
an authorized fiduciary may exercise the decanting power without the consent of any
person and without court approval.
3. Notice. Except as otherwise provided in subsection 4 or 6, an authorized fiduciary
shall give notice in a record of the intended exercise of the decanting power not later than
60 days before the exercise to:
A. Each settlor of the first trust, if living or then in existence;
B. Each qualified beneficiary of the first trust;
C. Each holder of a presently exercisable power of appointment over any part or all of
the first trust;
D. Each person that currently has the right to remove or replace the authorized
fiduciary;
E. Each other fiduciary of the first trust;
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 F. Each fiduciary of the 2nd trust; and
G. The Attorney General, if section 1213, subsection 2 applies.
4. Notice not required. An authorized fiduciary is not required to give notice under
subsection 3 to a person that is not known to the fiduciary or is known to the fiduciary but
cannot be located by the fiduciary after reasonable diligence.
5. Requirements of notice. A notice under subsection 3 must:
A. Specify the manner in which the authorized fiduciary intends to exercise the
decanting power;
B. Specify the proposed effective date for exercise of the decanting power;
C. Include a copy of the first-trust instrument; and
D. Include a copy of all 2nd-trust instruments.
6. Waiver of notice period. The decanting power may be exercised before expiration
of the notice period under subsection 1 if all persons entitled to receive notice waive the
notice period in a signed record.
7. Right to file application. The receipt of notice, waiver of the notice period or
expiration of the notice period does not affect the right of a person to file an application
under section 1208 asserting that:
A. An attempted exercise of the decanting power is ineffective because the exercise
did not comply with this Act or was an abuse of discretion or breach of fiduciary duty;
or
B. Section 1221 applies to the exercise of the decanting power.
8. Failure to give notice; reasonable care. An exercise of the decanting power is not
ineffective because of the failure to give notice to one or more persons under subsection 3
if the authorized fiduciary acted with reasonable care to comply with subsection 3.
§1208. Court involvement
1. Application to court. On application of an authorized fiduciary, a person entitled
to notice under section 1207, subsection 3, a beneficiary or, with respect to a charitable
interest, the Attorney General, the court may:
A. Provide instructions to the authorized fiduciary regarding whether a proposed
exercise of the decanting power is permitted under this Act and consistent with the
fiduciary duties of the authorized fiduciary;
B. Appoint a special fiduciary and authorize the special fiduciary to determine whether
the decanting power should be exercised under this Act and to exercise the decanting
power;
C. Approve an exercise of the decanting power;
D. Determine that a proposed or attempted exercise of the decanting power is
ineffective because:
(1) After applying section 1221, the proposed or attempted exercise does not or
did not comply with this Act; or
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 (2) The proposed or attempted exercise would be or was an abuse of the fiduciary's
discretion or a breach of fiduciary duty;
E. Determine the extent to which section 1221 applies to a prior exercise of the
decanting power;
F. Provide instructions to the trustee regarding the application of section 1221 to a
prior exercise of the decanting power; or
G. Order other relief to carry out the purposes of this Act.
2. Court approval. On application of an authorized fiduciary, the court may approve:
A. An increase in the fiduciary's compensation under section 1215; or
B. A modification under section 1217 of a provision granting a person the right to
remove or replace the fiduciary.
§1209. Formalities
An exercise of the decanting power must be made in a record signed by an authorized
fiduciary. The signed record must, directly or by reference to the notice required by section
1207, identify the first trust and the 2nd trust or trusts and state the property of the first trust
being distributed to each 2nd trust and the property, if any, that remains in the first trust.
§1210. Decanting power under expanded distributive discretion
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Noncontingent right" means a right that is not subject to the exercise of discretion
or the occurrence of a specified event that is not certain to occur. "Noncontingent right"
does not include a right held by a beneficiary if any person has discretion to distribute
property subject to the right to any person other than the beneficiary or the beneficiary's
estate.
B. "Presumptive remainder beneficiary" means a qualified beneficiary other than a
current beneficiary.
C. "Successor beneficiary" means a beneficiary that is not a qualified beneficiary on
the date the beneficiary's qualification is determined. "Successor beneficiary" does not
include a person that is a beneficiary only because the person holds a nongeneral power
of appointment.
D. "Vested interest" means:
(1) A right to a mandatory distribution that is a noncontingent right as of the date
of the exercise of the decanting power;
(2) A current a