The 2017 Trust Decanting State Rankings Chart shows South Dakota and Nevada remain top jurisdictions for decanting. Aside from North Carolina, our trust attorneys practice in a few other states:
- Tennessee (Ranked #3 nationally.)
- North Carolina (Ranked #15 nationally – tied with three other states.)
- New York (Ranked #20 nationally – tied with four other states.)
- Florida (Ranked #25 nationally.)
Trust decanting is one of several possible methods for trust modification in North Carolina. Other approaches include non-judicial settlement agreements, amendments made by trust protectors, and court order. The first two procedures avoid the expense, time, and administration of court. However, non-judicial settlement agreements hinge on two factors: The trust grantor must be alive, and all parties with an interest in the trust must unanimously agree on the amendments. Moreover, only certain aspects of the trust administration may be amended via non-judicial settlement agreement. An obstacle with a trust protector is that this provision is not inherently included in every trust. Old and outdated trusts may not have a trust protector, while individuals creating new trusts must specifically ask to add provisions for one. Fortunately, trust protectors can be added to existing trusts under many circumstances.
Trust decanting offers a convenient means for trust modification. Decanting essentially allows trust assets from an existing trust to pass through to a new trust with more favorable terms. Trustees managing trusts in North Carolina are fortunate to have decanting statutes. The state’s ranking at 15 ties it with the two new state additions to the chart, Colorado and New Mexico. These states adopted the Uniform Trust Decanting Act.
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