Title 18-B, Title 18-B

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 [PL 2021, c. 235, §1 (NEW).] B. Provides by its trust instrument that it is go…

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…

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 exer…

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 rega…

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 b…

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…

1. Limited distributive discretion defined. For purposes of this section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard. 2. Limited distributive discretion over principa…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Beneficiary with a disability" means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Determinable charitable interest" means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurren…

1. Decanting power prohibited. An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: A. The decanting power; or [PL 2021, c. 235, §1 (NEW).] B. A power granted by state law to the authorized fiduciar…

1. Compensation specified. If a first-trust instrument specifies an authorized fiduciary's compensation, the authorized fiduciary may not exercise the decanting power to increase the authorized fiduciary's compensation above the specified compensation unless: A. All qualified ben…

1. Liability for breach of trust. Except as otherwise provided in this section, a 2nd-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument does. 2. Indemnification for claim otherwise payab…

An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the authorized fiduciary unless: [PL 2021, c. 235, §1 (NEW).] 1. Person holding power consents. The person holding the…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Grantor trust" means a trust as to which a settlor of a first trust is considered the owner under 26 United States Code, Sections 671 to 677 or 26…

1. Duration. Subject to subsection 2, a 2nd trust may have a duration that is the same as or different from the duration of the first trust. 2. Rules applicable to property. To the extent that property of a 2nd trust is attributable to property of the first trust, the property of…

An authorized fiduciary may exercise the decanting power whether or not, under the first trust's discretionary distribution standard, the authorized fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of the exercis…

1. Second-trust instrument in part not in compliance. If exercise of the decanting power would be effective under this Act except for the 2nd-trust instrument's partial noncompliance with this Act, the exercise of the decanting power is effective and the following applies with re…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Animal trust" means a trust or an interest in a trust created to provide for the care of one or more animals. [PL 2021, c. 235, §1 (NEW).] B. "Pro…

A reference in this Title to a trust instrument or terms of the trust includes a 2nd-trust instrument and the terms of the 2nd trust.

1. Settlor of first trust is settlor of 2nd trust. For purposes of the law of this State other than this Act and subject to subsection 2, a settlor of a first trust is deemed to be the settlor of the 2nd trust with respect to the portion of the principal of the first trust subjec…

1. Distribution of all principal of first trust. Except as otherwise provided in subsection 3, if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more 2nd trusts, later-discovered property belonging to the first trust and …

A debt, liability or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the 2nd trust after exercise of the decanting power.

In applying and construing this Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

This Act modifies, limits or supersedes the Electronic Signatures in Global and National Commerce Act, 15 United States Code, Section 7001 et seq., but does not modify, limit or supersede 15 United States Code, Section 7001(c), or authorize electronic delivery of any of the notic…

This Act takes effect October 1, 2021.