The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 14A V.S.A. § 1412)
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§ 1412. Decanting power under limited distributive discretion
(a) As used in this section, “limited distributive discretion” means a discretionary power
of distribution that is limited to an ascertainable standard or a reasonably definite
standard.
(b) An authorized fiduciary who has limited distributive discretion over the principal
of the first trust for benefit of one or more current beneficiaries may exercise the
decanting power over the principal of the first trust.
(c) Under this section and subject to section 1414 of this title, a second trust may be created or administered under the law of any jurisdiction.
Under this section, the second trusts, in the aggregate, shall grant each beneficiary
of the first trust beneficial interests that are substantially similar to the beneficial
interests of the beneficiary in the first trust.
(d) A power to make a distribution under a second trust for the benefit of a beneficiary
who is an individual is substantially similar to a power under the first trust to
make a distribution directly to the beneficiary. A distribution is for the benefit
of a beneficiary if:
(1) the distribution is applied for the benefit of the beneficiary;
(2) the beneficiary is under a legal disability or the trustee reasonably believes the
beneficiary is incapacitated, and the distribution is made as permitted under the
Vermont Trust Code; or
(3) the distribution is made as permitted under the terms of the first-trust instrument
and the second-trust instrument for the benefit of the beneficiary.
(e) If an authorized fiduciary has limited distributive discretion over part but not all
of the principal of a first trust, the fiduciary may exercise the decanting power
under this section over that part of the principal over which the authorized fiduciary
has limited distributive discretion. (Added 2023, No. 177 (Adj. Sess.), § 1, eff. July 1, 2024.)