Section 56 Discretionary Powers of Trustee

• Library: Trust and Estate Legislation 2012

The trust will not lose GST exempt status if it meets both of the following:

· Either:

Ø the terms of the trust authorize the decanting without the consent of the beneficiaries or a court; or

Ø at the time that the trust became irrevocable, state law authorized decanting without this consent.

· The new trust does not extend the time of the vesting of any beneficial interest longer than the historic Rule Against Perpetuities—90 years or lives in being plus 21 years after the date the trust became irrevocable. Treas. Reg. § 26.2601-1(b)(4)(i)(A).

The question of decanting does not seem likely to be controversial (from a substantive or a GST...