§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.
[PL 2021, c. 235, §1 (NEW).]
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.
[PL 2021, c. 235, §1 (NEW).]
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;
[PL 2021, c. 235, §1 (NEW).]
B.
Each qualified beneficiary of the first trust;
[PL 2021, c. 235, §1 (NEW).]
C.
Each holder of a presently exercisable power of appointment over any part or all of the first trust;
[PL 2021, c. 235, §1 (NEW).]
D.
Each person that currently has the right to remove or replace the authorized fiduciary;
[PL 2021, c. 235, §1 (NEW).]
E.
Each other fiduciary of the first trust;
[PL 2021, c. 235, §1 (NEW).]
F.
Each fiduciary of the 2nd trust; and
[PL 2021, c. 235, §1 (NEW).]
[PL 2021, c. 235, §1 (NEW).]
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.
[PL 2021, c. 235, §1 (NEW).]
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;
[PL 2021, c. 235, §1 (NEW).]
B.
Specify the proposed effective date for exercise of the decanting power;
[PL 2021, c. 235, §1 (NEW).]
C.
Include a copy of the first-trust instrument; and
[PL 2021, c. 235, §1 (NEW).]
D.
Include a copy of all 2nd-trust instruments.
[PL 2021, c. 235, §1 (NEW).]
[PL 2021, c. 235, §1 (NEW).]
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.
[PL 2021, c. 235, §1 (NEW).]
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
[PL 2021, c. 235, §1 (NEW).]
[PL 2021, c. 235, §1 (NEW).]
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.
[PL 2021, c. 235, §1 (NEW).]
SECTION HISTORY
PL 2021, c. 235, §1 (NEW).