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- Chapter 28 Decanting a Colorado Trust
Chapter 28 - § 28.1 • INTRODUCTION
Jurisdiction | Colorado |
In the context of contemporary trust and estate law, "decanting" refers to a strategy by which a trustee distributes the assets of one trust to another trust with one or more of the same beneficiaries and one or more provisions that are materially different than those contained in the original trust. One "decants" a trust in order to change certain aspects of the trust (or its administration) that otherwise may appear unalterable — for example, because the trust is irrevocable or because conditions for amending the trust are not present. In this regard, decanting bears some similarities to judicial modification or the exercise of a lifetime power of appointment, both of which are strategies employed by practitioners for purposes of altering the disposition of assets held in trust. Unlike judicial modification, however, decanting often occurs without...
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