This section of the law is named the Uniform Trust Decanting Act, which allows for modifying the terms of an existing trust by transferring its assets to another trust with new or updated terms.

This section defines various terms related to trusts in a way that's easy to understand. It explains what 'appointive property' and 'ascertainable standard' mean, both related to trust administration and powers of appointment. It identifies who an 'authorized fiduciary' is, basically someone who can manage or alter trust distributions, which includes trustees and special fiduciaries.

It clarifies the role of a 'beneficiary,' anyone who benefits or may benefit from a trust, and what constitutes a 'charitable interest,' meaning parts of a trust that benefit charities. The term 'charitable organization' is defined as entities focused solely on charitable purposes, while 'charitable purpose' includes activities like education, religion, and public welfare.

The text further explains the concept of 'decanting power,' allowing certain fiduciaries to modify trust terms or shift funds between trusts. 'First trust' and 'second trust' are terms used to define the original and modified trusts, respectively. It also covers various types of power related to trusts, like 'power of appointment' where individuals can decide who gets the trust property.

Lastly, it defines the 'terms of the trust' as the settlor's intent, as laid out in their documentation, and what constitutes a 'trust instrument,' basically the paperwork that outlines how a trust operates.

This law concerns certain types of trusts. Generally, it applies to irrevocable trusts or revocable trusts that need the trustee's or a third party's consent for changes. However, it excludes trusts solely for charitable purposes.

A trust document can limit or prevent the power to decant, which means transferring assets from one trust to another. This law also doesn't interfere with the powers that allow altering or distributing trust assets according to other legal avenues like trust documents, state laws, and nonjudicial agreements.

Additionally, the person who created the trust can set terms for how trust assets are managed or changed.

This California law section outlines that when a fiduciary—someone trusted to handle another's money—decides to use their ability to transfer assets from one trust to another (called 'decanting'), they must follow their responsibilities and the trust's original intent. There's no obligation to use this power or to notify beneficiaries about it. Unless stated otherwise, the original trust is assumed to include this decanting power.

This law applies to any trust that is based in California or follows California law, no matter when it was created. It covers trusts that are mainly managed in California or have changed their main administration location to California. It also applies if the trust document specifies that California laws govern the trust, particularly for how it's managed, how its terms are interpreted, or understanding the terms' meanings and effects.

This law describes the process and requirements for an authorized fiduciary to use the decanting power, which allows changes to be made to a trust without court approval or consent from any other person. Notice of this intended action must be given 60 days in advance to certain people involved with the trust, such as the trust's settlor, beneficiaries, and any fiduciaries.

If a person entitled to this notice is unable to manage their own financial affairs, notice must also be given to a representative for them. If such representatives do not exist, the fiduciary must seek their appointment.

The notice must include details such as the reasons for changes, differences between trusts, and copies of trust documents, as well as a warning about losing the right to contest the changes if no action is taken within 59 days.

In certain cases, such as when everyone entitled to notice agrees and signs a waiver, this period can be skipped. However, even after the notice period or waiver, a person can still challenge the decanting if they believe it was improperly exercised or if there was a breach of duty.

If someone has the authority to represent another person in trust matters, any notices or decisions that they make are treated as if the original person received or made them, unless the represented person objects before actions take effect. This also means this representative can file certain applications on behalf of the person they represent. However, the person who created the trust (the settlor) can't represent or make decisions for the beneficiaries.

This law explains what actions a court can take when an application is made regarding the decanting power in trusts. Decanting is when a trustee transfers assets from one trust to another. The court can instruct the fiduciary on whether a proposed decanting is allowed, appoint a special fiduciary to determine if decanting should happen, approve a decanting action, or declare that a decanting attempt wasn't valid if it didn’t follow the rules or breached fiduciary duty. The court can also clarify how previous decanting actions are affected by the law and provide instructions on dealing with them. The fiduciary must prove that all required notifications were made. Additionally, the court can approve changes to the fiduciary's compensation or modify rights concerning their removal or replacement.

When a fiduciary uses their power to decant, meaning to move assets from one trust to another, this action must be documented in writing. The document, signed by the fiduciary, must specify both the original trust and the new trust or trusts. It should also clearly indicate the assets being moved to the new trust(s) and what, if any, stays in the original trust.

This law section deals with a trustee's ability to use the "decanting power," which is essentially the ability to move assets from one trust (the first trust) to another (the second trust), under certain conditions. A "noncontingent right" is a fixed right not dependent on conditions, while a "vested interest" includes rights to regular, mandatory distributions from the trust.

A "presumptive remainder beneficiary" is someone who stands to inherit in the future, and a "successor beneficiary" is not currently qualified but might be in the future. The authorized fiduciary managing the trust can't add new beneficiaries who aren't part of the first trust, reduce any vested interests, or make significant changes unless they follow specific rules. The new trust can retain, omit, or modify powers of appointment, which is the ability to decide who receives trust benefits, as long as these conditions are met.

If decanting involves a partial portion of the trust, it can only be done on the part where fiduciary has expanded discretion. Overall, this statute ensures that only permitted changes are made when transferring trust assets, protecting the current beneficiaries' rights.

This section explains how a fiduciary, who has limited authority to distribute trust funds according to a defined standard, can transfer or 'decant' assets from one trust (first trust) to another (second trust). The rules ensure that the beneficiaries' rights and interests are kept nearly the same when the transfer happens. The second trust can be governed by laws of any jurisdiction and must offer beneficiaries similar benefits to those in the first trust, except under specific conditions outlined in this section. The section also allows for distributing trust assets to support beneficiaries if they are unable to manage the assets themselves, due to incapacity or other reasons, as long as the trust's original intentions are respected.

This section addresses how a trust for a beneficiary with a disability can be managed or modified to ensure eligibility for government benefits. A 'special needs fiduciary,' typically a trustee with discretion over the trust, can use the 'decanting power' to transfer assets from the original trust to a special needs trust. This special needs trust should not be counted as an asset when determining eligibility for governmental benefits. The decanting power can only be utilized if it benefits the trust's purpose and results in a second trust that complies with Medicaid rules. The interests of other beneficiaries in the new trust(s) should remain substantially similar to their interests in the original trust.

This law outlines how charitable interests in trusts should be handled in California. If a trust (called a 'first trust') includes a clear-cut requirement for a charitable interest, the state Attorney General can act as a representative for that interest. Any subsequent trusts (referred to as 'second trusts') must not reduce or change the charitable interest or the purposes and conditions outlined in the original trust. If multiple new trusts are created from the original, they are considered together to ensure the charitable intentions are preserved. A new trust that includes a charitable interest must usually be managed under California law unless the Attorney General agrees or the court approves a change. The powers of the Attorney General remain intact aside from these stipulations.

This law outlines the limitations on a fiduciary's ability to use the decanting power, which is the ability to modify the terms of a trust or move assets from one trust to another. Firstly, a fiduciary cannot use this power if the original trust document explicitly prohibits it. Even if state law grants a fiduciary such powers, they can't override express prohibitions or restrictions in the initial trust.

Secondly, any restrictions in the original trust document on modifying the trust or moving assets must be respected when exercising the decanting power. General prohibitions on modifying or revoking the trust, spendthrift clauses, or clauses preventing transfer of a beneficiary's interest do not stop the use of the decanting power. Finally, if there are specific prohibitions or restrictions on decanting in the original trust, these must be included in any new trust instruments.

This law section details the rules around an authorized fiduciary's compensation when they have the power to use 'decanting,' which is essentially transferring assets from one trust to another. If a trust document specifies how much they get paid, they can't increase that pay unless all beneficiaries of the new trust agree in writing, or a court approves it. If the pay isn't specified, the same consent or court approval is needed. However, if changes in the trust naturally lead to a pay adjustment due to things like the new trust lasting longer or having more money than the original, that doesn't count as an increase in pay under these rules.

This section addresses the conditions related to a second trust (created through a process called 'decanting') when a fiduciary (someone responsible for managing the trust) is involved. It prevents the second trust from reducing the fiduciary's liability for breach of trust more than the original trust does.

The second trust can, however, offer indemnification (protection against claims) similar to the protection available in the original trust if the decanting power had not been used. However, the overall liability for fiduciaries cannot be reduced, though it allows redistributing fiduciary responsibilities among them according to state law.

This law says that a fiduciary (someone trusted to manage assets) can't change who can remove or replace them in a trust unless one of these conditions is met: the person with the removal power agrees to the change in writing, and the change only affects them; both the person with the power and the trust beneficiaries agree in writing, with a similar power given to someone else; or a court approves the change, again with a similar power given to another person.

This law explains how trustees can use a process called 'decanting' to move assets from one trust to another without losing tax benefits. For a trust that gets tax benefits like marital or charitable deductions, the new trust must maintain the same terms to keep these benefits. Additionally, there are rules for transferring stock from S-corporations and maintaining certain tax exclusions and qualifications. A new trust cannot have terms that would increase required minimum distributions or that would change the nature of the trust from grantor to nongrantor if that would remove a tax benefit. However, under certain conditions, a grantor trust can become a nongrantor trust and vice versa. If the person who created the trust objects, the trustee cannot decant unless specific conditions are met.

This law section in California allows for the creation of a second trust, which can last the same amount of time or for a different duration than the first trust. However, if the second trust holds property that originates from the first trust, any rules affecting how long the trust can last, how income can accumulate, or when the property can be transferred, still apply just as they did to the first trust.

This law allows a fiduciary, who is authorized to manage a trust, to use the decanting power. Decanting power lets them move assets from one trust (first trust) to another, even if they weren't required or planning to make these distributions initially.

This law explains what happens if there is a mistake when transferring assets from one trust to another (called 'exercising the decanting power'). If the new trust document (second trust) almost follows the rules but has some errors, corrections are automatically made: any part that isn't allowed is void, and missing required parts are considered included. Additionally, if a mistake in transferring happens and a trustee notices later, the trustee must correct it according to their responsibilities.

This section deals with animal trusts, which are trusts set up to benefit animals. A 'protector' is someone who makes sure the trust serves its purpose for the animal. This person can be appointed by the trust or by the court, or it could be a nonprofit organization. An animal trust can be changed (decanted) if the protector agrees in writing. The protector has the same rights as a beneficiary. If a trust is altered, the new trust must still serve the original purpose of benefiting the animal the same way the old trust did.

This section states that when the law mentions a 'trust instrument' or 'terms of the trust,' it also includes any second trust instrument and its terms. This means if there is a modification or additional trust document, those are considered part of the original trust for legal purposes.

This law deals with trust decanting, which is when assets from one trust (the first trust) are moved to another trust (the second trust). It states that for most legal purposes, the person who created the first trust is considered to be the creator of the second trust, at least for the portion of assets moved. However, when understanding the intentions behind setting up the second trust, you should consider the intentions of not only the creator of the first trust but also those of the second trust and any fiduciary managing it.

This law talks about what happens to property when a trust is modified using the 'decanting power.' If all the property from the original trust was meant to be moved to new trusts, any new or later-discovered property automatically belongs to those new trusts. But if only some of the property was moved, any additional property stays with the original trust unless specified otherwise. The fiduciary or person in charge can decide where any new property should go, either when changing the trust or through the rules of the new trust.

If there's a debt or obligation that can be collected from the assets of a first trust, it remains collectible from those assets even after they are moved to a second trust using a legal option called the decanting power.

This section clarifies that trustees still have the right to seek the court’s guidance or approval about trust matters and can request changes to a trust as allowed under specific parts of trust law. This part of the law doesn't stop trustees from asking the court for help with trust-related issues.

This part of the law is designed to remain effective even if a specific section is found invalid. If one part doesn't work, other parts that can still be applied without the faulty section will continue to be valid.