Section 52 Subdivision (6)

• Library: Trust and Estate Legislation 2012

The exercise of such authority does not apply to trust property subject to a presently exercisable power of withdrawal held by a trust beneficiary to whom, or for the benefit of whom, the trustee has authority to make distributions, unless after the exercise of such authority, such beneficiary’s power of withdrawal is unchanged with respect to the trust property;

Section 456.4-419.2(6), RSMo Supp. 2011.

This provision is another effort to prevent the inadvertent creation of tax liability by a decanting trustee. Like the others, it limits the power to decant. What is unique about it is that the limitation is based on the nature of the trust property and not on the attributes of the trustee or the terms of the trust. To understand its convoluted structure, it may help to break it into its component parts.

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