Sec. 52. (a) If exercise of the decanting power would be effective under this chapter except that the second-trust instrument in part does not comply with this chapter, the exercise of the power is effective and the following rules apply with respect to the principal of the second trust attributable to the exercise of the power:

(1) A provision in the second-trust instrument that is not permitted under this chapter is void to the extent necessary to comply with this chapter.

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Terms Used In Indiana Code 30-4-10-52

  • decanting power: means the power of an authorized fiduciary under this chapter to:

    Indiana Code 30-4-10-12

  • Fiduciary: A trustee, executor, or administrator.
  • Principal: has the meaning set forth in IC 30-2-14-10. See Indiana Code 30-4-1-2
  • second trust: means :

    Indiana Code 30-4-10-26

  • second-trust instrument: means the trust instrument for a second trust. See Indiana Code 30-4-10-27
(2) A provision required by this chapter to be in the second-trust instrument that is not contained in the instrument is deemed to be included in the instrument to the extent necessary to comply with this chapter.

     (b) If a trustee or other fiduciary of a second trust determines that subsection (a) applies to a prior exercise of the decanting power, the fiduciary shall take corrective action consistent with the fiduciary’s duties.

As added by P.L.161-2022, SEC.3.