*EH1205.1* February 11, 2022 ENGROSSED HOUSE BILL No. 1205 _____ DIGEST OF HB 1205 (Updated February 9, 2022 4:33 pm - DI 149) Citations Affected: IC 30-4; IC 34-30. Synopsis: Uniform trust decanting act and trustee duties. Allows a trustee of an irrevocable trust to appoint a successor trustee or multiple trustees. Provides that a trustee's power to appoint a successor trustee includes the power to allocate trustee powers to one or more trustees. Enacts the uniform trust decanting act. Creates a definition of the decanting power to include a power by a trustee to make limited modifications to an irrevocable trust, including an asset transfer to a new trust. Requires that a modification be consistent with a settlor's or charitable organization's intent. Permits the trustee of an existing trust to make modifications to or distributions from an existing trust for the benefit of a disabled beneficiary. Prohibits a trustee from being required to decant. Requires advanced notice to all qualified beneficiaries. Provides that the decanting power of an authorized fiduciary is not precluded by certain terms. (The introduced version of this bill was prepared by the Probate Code Commission.) Effective: July 1, 2022. Young J (SENATE SPONSORS — FREEMA N, KOCH) January 6, 2022, read first time and referred to Committee on Judiciary. January 13, 2022, reported — Do Pass. January 18, 2022, read second time, ordered engrossed. January 19, 2022, engrossed. January 20, 2022, read third time, passed. Yeas 84, nays 0. SENATE ACTION February 1, 2022, read first time and referred to Committee on Judiciary. February 10, 2022, amended, reported favorably — Do Pass. EH 1205—LS 6169/DI 107 February 11, 2022 Second Regular Session of the 122nd General Assembly (2022) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2021 Regular Session of the General Assembly. ENGROSSED HOUSE BILL No. 1205 A BILL FOR AN ACT to amend the Indiana Code concerning trusts and fiduciaries. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 30-4-3-29.3 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2022]: Sec. 29.3. (a) The power to appoint a successor trustee 4 under a governing instrument or under section 33 of this chapter 5 includes: 6 (1) the power to appoint multiple successor trustees; and 7 (2) the power to allocate trustee powers to one (1) or more 8 trustees. 9 (b) A trustee to whom powers: 10 (1) have been exclusively allocated under subsection (a) must 11 be a fiduciary only with respect to the powers allocated; and 12 (2) have not been allocated under subsection (a) is not liable 13 for the actions of a trustee to whom the powers, duties, and 14 responsibilities are allocated. 15 (c) The rules governing the rights, powers, duties, and liabilities 16 of a governing instrument under this chapter apply to a trustee 17 appointed under this section unless expressly limited by the terms EH 1205—LS 6169/DI 107 2 1 of a governing instrument. 2 SECTION 2. IC 30-4-3-36 IS REPEALED [EFFECTIVE JULY 1, 3 2022]. Sec. 36. (a) Unless a trust expressly provides otherwise, a 4 trustee who has discretion under the terms of a trust (referred to in this 5 section as the "first trust") to invade the principal of the trust to make 6 distributions to or for the benefit of one (1) or more persons may 7 instead exercise the power by appointing all or part of the principal of 8 the first trust in favor of a trustee of another trust (referred to in this 9 section as the "second trust") for the benefit of one (1) or more persons 10 under the same trust instrument or under a different trust instrument as 11 long as: 12 (1) the beneficiaries of the second trust are the same as the 13 beneficiaries of the first trust; 14 (2) the second trust does not reduce any income, annuity, or 15 unitrust interest in the assets of the first trust; and 16 (3) if any contributions to the first trust qualified for a marital or 17 charitable deduction for purposes of the federal income, gift, or 18 estate taxes, the second trust does not contain any provision that, 19 if included in the first trust, would have prevented the first trust 20 from qualifying for a deduction or reduced the amount of a 21 deduction. 22 (b) The exercise of a power to invade principal under subsection (a) 23 must be by an instrument that is: 24 (1) in writing; 25 (2) signed and acknowledged by the trustee; and 26 (3) filed with the records of the first trust. 27 (c) The exercise of a power to invade principal under subsection (a) 28 is considered the exercise of a power of appointment, other than a 29 power to appoint to the trustee, the trustee's creditors, the trustee's 30 estate, or the creditors of the trustee's estate. The exercise of the power 31 does not extend the time at which the permissible period of the rule 32 against perpetuities begins and the law that determines the permissible 33 period of the rule against perpetuities of the first trust. 34 (d) The trustee shall notify in writing all qualified beneficiaries of 35 the first trust at least sixty (60) days before the effective date of the 36 trustee's exercise of the power to invade principal under subsection (a) 37 of the manner in which the trustee intends to exercise the power. A 38 copy of the proposed instrument exercising the power satisfies the 39 trustee's notice obligation under this subsection. If all qualified 40 beneficiaries waive the notice period by signed written instrument 41 delivered to the trustee, the trustee's power to invade principal may be 42 exercised immediately. The trustee's notice under this subsection does EH 1205—LS 6169/DI 107 3 1 not limit the right of any beneficiary to object to the exercise of the 2 trustee's power to invade principal, except as otherwise provided by 3 this article. 4 (e) The exercise of the power to invade principal under subsection 5 (a) is not prohibited by a spendthrift clause or by a provision in the 6 trust instrument that prohibits amending or revoking the trust. 7 (f) This section is not intended to create or imply a duty to exercise 8 a power to invade principal. No inference of impropriety may be made 9 as a result of a trustee not exercising the power to invade principal 10 conferred under subsection (a). 11 (g) This section may not be construed to abridge the right of any 12 trustee who has a power of invasion to appoint property in further trust 13 that arises under the terms of the first trust, under any other provision 14 of this article or any other statute, or under common law. 15 SECTION 3. IC 30-4-10 IS ADDED TO THE INDIANA CODE AS 16 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 17 1, 2022]: 18 Chapter 10. Uniform Trust Decanting Act 19 Sec. 1. (a) This chapter applies to a trust created before, on, or 20 after July 1, 2022, that: 21 (1) has its principal place of administration in this state, 22 including a trust whose principal place of administration has 23 been changed to this state; or 24 (2) provides by its trust instrument that it is governed by the 25 law of this state or is governed by the law of this state for the 26 purpose of: 27 (A) administration, including administration of a trust 28 whose governing law for purposes of administration has 29 been changed to the law of this state; 30 (B) construction of terms of the trust; or 31 (C) determining the meaning or effect of terms of the trust. 32 (b) Except as provided in subsections (c) and (d), this chapter 33 applies to an express trust that is irrevocable or revocable by the 34 settlor only with the consent of the trustee or a person holding an 35 adverse interest. 36 (c) This chapter does not: 37 (1) apply to a trust held solely for charitable purposes; 38 (2) limit the power of a trustee, powerholder, or other person 39 to distribute or appoint property in further trust; 40 (3) limit the power to modify a trust under the trust 41 instrument, law of this state other than this chapter, common 42 law, a court order, or a nonjudicial settlement agreement; or EH 1205—LS 6169/DI 107 4 1 (4) affect the ability of a settlor to provide in a trust 2 instrument for the distribution of the trust property or 3 appointment in further trust of the trust property or for 4 modification of the trust instrument. Such provisions in the 5 trust instrument shall control over any applicable provision 6 of this chapter. 7 (d) Subject to section 45 of this chapter, a trust instrument may 8 restrict or prohibit exercise of the decanting power. 9 Sec. 2. As used in this chapter, "appointive property" means the 10 property or property interest subject to a power of appointment. 11 Sec. 3. As used in this chapter, "ascertainable standard" means 12 a standard relating to an individual's health, education, support, or 13 maintenance as defined by 26 U.S.C. 2041(b)(1)(A) or 26 U.S.C. 14 2514(c)(1) and applicable regulations. 15 Sec. 4. As used in this chapter, "authorized fiduciary" means: 16 (1) a trustee, trust director, or other fiduciary, other than a 17 settlor, that has discretion to distribute or direct a trustee to 18 distribute part or all of the principal of the first trust to one 19 (1) or more current beneficiaries; 20 (2) a special fiduciary appointed under section 39 of this 21 chapter; or 22 (3) a special-needs fiduciary under section 43 of this chapter. 23 Sec. 5. As used in this chapter, "beneficiary" means a person 24 that: 25 (1) has a present or future, vested or contingent, beneficial 26 interest in a trust; 27 (2) holds a power of appointment over trust property; or 28 (3) is an identified charitable organization that may receive 29 distributions under the terms of the trust. 30 Sec. 6. As used in this chapter, "beneficiary with disability" 31 means a beneficiary who is determined, in the exercise of an 32 authorized fiduciary's discretion, to have one (1) of the following 33 conditions: 34 (1) Dementia, memory loss, Parkinson's disease, or other 35 progressive condition that, currently or in the future, may 36 impair the ability of the beneficiary to provide self care or 37 manage the beneficiary's assets. 38 (2) A physical or mental condition or infirmity due to age, 39 cognitive impairment, addiction, or disease that impairs the 40 beneficiary's ability to provide self care or manage the 41 beneficiary's assets. 42 (3) The susceptibility of the beneficiary, at any age, to EH 1205—LS 6169/DI 107 5 1 financial exploitation, as defined in IC 23-19-4.1, 2 IC 30-5-5-6.5, or FINRA Rule 2165 approved by the United 3 States Securities and Exchange Commission. 4 (4) A condition requiring essential medical treatment or 5 prescription medication that the beneficiary cannot 6 reasonably provide for from the beneficiary's resources 7 outside the trust assets. 8 (5) A condition related directly or indirectly to the disability 9 of a beneficiary described in subdivisions (1) through (4) with 10 respect to which the settlor of the trust has expressed the 11 settlor's intent. 12 Sec. 7. As used in this chapter, "charitable interest" means an 13 interest in a trust that: 14 (1) is held by an identified charitable organization and makes 15 the organization a qualified beneficiary; 16 (2) benefits only a charitable organization and, if the interest 17 were held by an identified charitable organization, would 18 make the organization a qualified beneficiary; or 19 (3) is held solely for a charitable purpose and, if the interest 20 were held by an identified charitable organization, would 21 make the organization a qualified beneficiary. 22 Sec. 8. As used in this chapter, "charitable organization" means: 23 (1) a person, other than an individual, organized and operated 24 exclusively for a charitable purpose; or 25 (2) a government or governmental subdivision, agency, or 26 instrumentality to the extent it holds funds exclusively for a 27 charitable purpose. 28 Sec. 9. As used in this chapter, "charitable purpose" means the 29 relief of poverty, the advancement of education or religion, the 30 promotion of health, a municipal or other governmental purpose, 31 or a purpose that is beneficial to the community. 32 Sec. 10. As used in this chapter, "court" has the meaning set 33 forth in IC 30-4-1-2(6). 34 Sec. 11. As used in this chapter, "current beneficiary" means a 35 beneficiary who, on the date that the beneficiary's qualification is 36 determined, is a distributee or permissible distributee of trust 37 income or principal. The term includes the holder of a presently 38 exercisable general power of appointment but does not include a 39 person that is a beneficiary only because the person holds any 40 other power of appointment. 41 Sec. 12. As used in this chapter, "decanting power" means the 42 power of an authorized fiduciary under this chapter to: EH 1205—LS 6169/DI 107 6 1 (1) distribute property of a first trust to one (1) or more 2 second trusts; or 3 (2) to modify the terms of the first trust. 4 Sec. 13. As used in this chapter, "designated representative" has 5 the meaning set forth in IC 30-4-1-2(8). 6 Sec. 14. As used in this chapter, "expanded distributive 7 discretion" means a discretionary power of distribution that is not 8 limited to an ascertainable standard or a reasonably definite 9 standard. 10 Sec. 15. As used in this chapter, "first trust" means a trust over 11 which an authorized fiduciary may exercise the decanting power. 12 Sec. 16. As used in this chapter, "first-trust instrument" means 13 the trust instrument for a first trust. 14 Sec. 17. As used in this chapter, "general power of 15 appointment" means a power of appointment exercisable in favor 16 of: 17 (1) a powerholder; 18 (2) a powerholder's estate; 19 (3) a creditor of the powerholder; or 20 (4) a creditor of the powerholder's estate. 21 Sec. 18. As used in this chapter, "jurisdiction" means a 22 geographic area, including a state or country. 23 Sec. 19. As used in this chapter, "person" means: 24 (1) an individual; 25 (2) a corporation; 26 (3) a business trust; 27 (4) an estate; 28 (5) a trust; 29 (6) a partnership; 30 (7) a limited liability company; 31 (8) an association; 32 (9) a joint venture; 33 (10) a government; 34 (11) a governmental subdivision; 35 (12) an agency or instrumentality; 36 (13) a public corporation; or 37 (14) any other legal or commercial entity. 38 Sec. 20. As used in this chapter, "power of appointment" means 39 a power that enables a powerholder acting in a nonfiduciary 40 capacity to designate a recipient of an ownership interest in or 41 another power of appointment over the appointive property. The 42 term does not include a power of attorney. EH 1205—LS 6169/DI 107 7 1 Sec. 21. As used in this chapter, "powerholder" means a person 2 in which a donor creates a power of appointment. 3 Sec. 22. (a) As used in this chapter, "presently exercisable power 4 of appointment" means a power of appointment exercisable by the 5 powerholder at the relevant time. 6 (b) The term includes a power of appointment exercisable only 7 after the occurrence of a specified event, the satisfaction of an 8 ascertainable standard, or the passage of a specified time. 9 (c) The term does not include a power exercisable only at the 10 powerholder's death. 11 Sec. 23. As used in this chapter, "qualified beneficiary" has the 12 meaning set forth in IC 30-4-1-2(19). 13 Sec. 24. As used in this chapter, "reasonably definite standard" 14 means a clearly measurable standard under which a holder of a 15 power of distribution is legally accountable within the meaning of 16 26 U.S.C. 674(b)(5)(A) and applicable regulations. 17 Sec. 25. As used in this chapter, "record" means information 18 that is inscribed on a tangible medium or that is stored in an 19 electronic or other medium and is retrievable in perceivable form. 20 Sec. 26. As used in this chapter, "second trust" means: 21 (1) a first trust after modification under this chapter; or 22 (2) a trust to which a distribution of property from a first 23 trust is or may be made under this chapter. 24 Sec. 27. As used in this chapter, "second-trust instrument" 25 means the trust instrument for a second trust. 26 Sec. 28. (a) As used in this chapter, except as provided in section 27 55 of this chapter, "settlor" has the meaning set forth in 28 IC 30-4-1-2(21). 29 (b) If more than one (1) person creates or contributes property 30 to a trust, each person is a settlor of the portion of the trust 31 property attributable to the person's contribution except to the 32 extent another person has power to revoke or withdraw that 33 portion. 34 Sec. 29. As used in this chapter, "sign" means with present 35 intent to authenticate or adopt a record to: 36 (1) execute or adopt a tangible symbol; or 37 (2) attach to or logically associate with the record of an 38 electronic symbol, sound, or process. 39 Sec. 30. As used in this chapter, "state" means: 40 (1) a state of the United States; 41 (2) the District of Columbia; 42 (3) Puerto Rico; EH 1205—LS 6169/DI 107 8 1 (4) the United States Virgin Islands; or 2 (5) a territory or insular possession subject to the jurisdiction 3 of the United States. 4 Sec. 31. As used in this chapter, "terms of the trust" has the 5 meaning set forth in IC 30-4-1-2(22). 6 Sec. 32. As used in this chapter, "trust instrument" has the 7 meaning set forth in IC 30-4-1-2(25). The term includes a written 8 document executed by the settlor to create a trust or by a person 9 to create a second trust that contains some or all of the terms of the 10 trust, including any amendments. 11 Sec. 33. (a) Except as provided in this chapter, an authorized 12 fiduciary may exercise the decanting power without the consent of 13 any person and without court approval. 14 (b) An authorized fiduciary shall act in accordance with its 15 fiduciary duties, including the duty to act in accordance with the 16 purposes of the first trust in exercising the decanting power. 17 (c) This chapter does not create or imply a duty to exercise the 18 decanting power or to inform beneficiaries about the applicability 19 of this chapter. 20 (d) Except as provided in a first-trust instrument, the terms of 21 the first trust are deemed to include the decanting power. 22 Sec. 34. A trustee or person that reasonably relies on: 23 (1) the validity of a distribution of the property of a trust to 24 another trust; or 25 (2) a modification of a trust under this chapter, law of this 26 state other than this article, or the law of another jurisdiction; 27 is not liable to any person for any action or failure to act as a result 28 of the reliance. 29 Sec. 35. (a) Except as provided in subsection (c), an authorized 30 fiduciary shall give notice in a record of the intended exercise of 31 the decanting power not later than sixty (60) days before the 32 exercise of the decanting power to: 33 (1) each settlor of the first trust, if living or then in existence; 34 (2) each qualified beneficiary of the first trust, including the 35 designated representative, if any, or other representative 36 under IC 30-4-6-10.5 of a qualified beneficiary who: 37 (A) is a minor or an incapacitated person; 38 (B) is unborn; 39 (C) is unknown; or 40 (D) cannot be located after a reasonably diligent search; 41 (3) each holder of a presently exercisable power of 42 appointment in the first trust; EH 1205—LS 6169/DI 107 9 1 (4) each person that currently has the right to remove or 2 replace the authorized fiduciary; 3 (5) each fiduciary of the first trust; 4 (6) each fiduciary of the second trust; and 5 (7) the attorney general, if section 44(c) of this chapter 6 applies. 7 (b) A notice period under subsection (a) begins on the day that 8 the notice is given and ends fifty-nine (59) days later. 9 (c) An authorized fiduciary is not required to give notice under 10 subsection (a) to a person that: 11 (1) is not known to the fiduciary; 12 (2) is known to the fiduciary but cannot be located by the 13 fiduciary after a reasonably diligent search; or 14 (3) has no representative under IC 30-4-6-10.5. 15 (d) The decanting power may be exercised before expiration of 16 the notice period under subsection (a) if all persons entitled to 17 receive notice waive the notice period in a signed record. 18 Sec. 36. A notice under section 35 of this chapter must: 19 (1) specify the manner in which the authorized fiduciary 20 intends to exercise the decanting power; 21 (2) specify the proposed effective date for the exercise of the 22 decanting power; 23 (3) include a copy of the first-trust instrument; and 24 (4) include a copy of the second-trust instrument. 25 Sec. 37. (a) The receipt of notice, waiver of the notice period, or 26 expiration of the notice period does not affect the right of a person 27 to file a petition under section 39 of this chapter asserting that: 28 (1) an exercise of the decanting power: 29 (A) is ineffective because it did not comply with this 30 chapter; 31 (B) was an abuse of discretion; or 32 (C) was a breach of a fiduciary duty; or 33 (2) section 52 of this chapter applies to the exercise of the 34 decanting power. 35 (b) An exercise of the decanting power is not ineffective because 36 of the failure to give notice to one (1) or more persons under 37 section 35 of this chapter if the authorized fiduciary acted with 38 reasonable care to comply with section 35 of this chapter. 39 Sec. 38. (a) Notice to a person with authority to represent and 40 bind another person under a first-trust instrument or this article 41 has the same effect as notice given directly to the person 42 represented. EH 1205—LS 6169/DI 107 10 1 (b) Consent of or waiver by a person with authority to represent 2 and bind another person under a first-trust instrument or this 3 article is binding on the person represented unless the person 4 represented objects to the representation before the consent or 5 waiver otherwise would become effective. 6 (c) A person with authority to represent and bind another 7 person under a first-trust instrument or this article may file a 8 petition under section 39 of this chapter on behalf of the person 9 represented. 10 (d) A settlor may not represent or bind a beneficiary under this 11 chapter. 12 Sec. 39. (a) Upon a petition by an authorized fiduciary, a 13 beneficiary, or a person entitled to notice under section 35 of this 14 chapter or with respect to a charitable interest by the attorney 15 general or other person that has standing to enforce the charitable 16 interest, the court may: 17 (1) provide instructions to the authorized fiduciary about 18 whether a proposed exercise of the decanting power is 19 permitted under this chapter and consistent with the fiduciary 20 duties of the authorized fiduciary; 21 (2) appoint a special fiduciary and authorize the special 22 fiduciary to determine whether the exercise of the decanting 23 power is proper under this chapter and to exercise the 24 decanting power; 25 (3) approve an exercise of the decanting power; 26 (4) determine that a proposed or attempted exercise of the 27 decanting power is ineffective because: 28 (A) after applying section 52 of this chapter, the proposed 29 or attempted exercise does not comply with this chapter; 30 or 31 (B) the proposed or attempted exercise is an abuse of the 32 fiduciary's discretion or a breach of a fiduciary duty; 33 (5) determine the extent section 52 of this chapter applies to 34 a prior exercise of the decanting power; 35 (6) provide instructions to the trustee regarding the 36 application of section 52 of this chapter to a prior exercise of 37 the decanting power; or 38 (7) order relief to carry out the purposes of this chapter. 39 (b) Upon a petition by an authorized fiduciary, the court may 40 approve: 41 (1) an increase in the fiduciary's compensation under section 42 46 of this chapter; or EH 1205—LS 6169/DI 107 11 1 (2) a modification under section 48 of this chapter of a 2 provision granting a person the right to remove or replace the 3 fiduciary. 4 Sec. 40. An exercise of the decanting power must be made in a 5 record signed by an authorized fiduciary. The signed record must: 6 (1) directly or indirectly reference the notice required by 7 section 35 of this chapter; 8 (2) identify the first trust and the second trust; 9 (3) identify and state the property of the first trust being 10 distributed to each second trust; and 11 (4) identify the property that remains in the first trust. 12 Sec. 41. (a) As used in this section, "noncontingent right" means 13 a right that is not subject to the: 14 (1) exercise of discretion; or 15 (2) occurrence of a specified event that is not certain to occur. 16 The term does not include a right held by a beneficiary if any 17 person has discretion to distribute property subject to the right of 18 any person other than the beneficiary or the beneficiary's estate. 19 (b) As used in this section, "presumptive remainder 20 beneficiary" means a qualified beneficiary other than a current 21 beneficiary. 22 (c) As used in this section, "successor beneficiary" means a 23 beneficiary that is not a qualified beneficiary on the date the 24 beneficiary's qualification is determined. The term does not include 25 a person that is a beneficiary only because the person holds a 26 nongeneral power of appointment. 27 (d) As used in this section, "vested interest" means a: 28 (1) right to a mandatory distribution that is a noncontingent 29 right as of the date of the exercise of the decanting power; 30 (2) current and noncontingent right, annually or more 31 frequently, to a mandatory distribution of income, a specified 32 dollar amount, or a percentage of value of some or all of the 33 trust property; 34 (3) current and noncontingent right, annually or more 35 frequently, to withdraw income, a specified dollar amount, or 36 a percentage of value of some or all of the trust property; 37 (4) presently exercisable general power of appointment; or 38 (5) right to receive an ascertainable part of the trust property 39 on the trust's termination that is not subject to the exercise of 40 discretion or to the occurrence of a specified event that is not 41 certain to occur. 42 (e) Subject to subsection (f) and section 44 of this chapter, an EH 1205—LS 6169/DI 107 12 1 authorized fiduciary that has expanded distributive discretion over 2 the principal of a first trust for the benefit of one (1) or more 3 current beneficiaries may exercise the decanting power over the 4 principal of the first trust. 5 (f) Subject to section 43 of this chapter, an exercise of the 6 decanting power under this section must not: 7 (1) except as provided in subsection (g), include as a current 8 beneficiary a person that is not a current beneficiary of the 9 first trust; 10 (2) except as provided in subsection (g), include as a 11 presumptive remainder beneficiary or successor beneficiary 12 a person that is not a current beneficiary, presumptive 13 remainder beneficiary, or successor beneficiary of the first 14 trust; or 15 (3) reduce or eliminate a vested interest. 16 (g) Subject to subsection (f)(3) and section 44 of this chapter, in 17 an exercise of the decanting power under this subsection, a second 18 trust may be a trust created or administered under the law of any 19 jurisdiction and may: 20 (1) retain a power of appointment granted in the first trust; 21 (2) omit a power of appointment granted in the first trust, 22 other than a presently exercisable general power of 23 appointment; 24 (3) create or modify a power of appointment if the 25 powerholder is a current beneficiary of the first trust and the 26 authorized fiduciary has expanded distributive discretion to 27 distribute principal to the beneficiary; and 28 (4) create or modify a power of appointment if the 29 powerholder is a presumptive remainder beneficiary or 30 successor beneficiary of the first trust, but the exercise of the 31 power may take effect only after the powerholder becomes, or 32 would have become a current beneficiary. 33 (h) A power of appointment described in subsections (g)(1) 34 through (g)(4) may be general or nongeneral. The class of 35 permissible appointees in favor of which the power may be 36 exercised may be broader than or different from the beneficiaries 37 of the first trust. 38 (i) If an authorized fiduciary has expanded distributive 39 discretion over part of the principal of a first trust, the fiduciary 40 may exercise the decanting power under this section over the 41 principal that the authorized fiduciary has expanded distributive 42 discretion. EH 1205—LS 6169/DI 107 13 1 Sec. 42. (a) As used in this section, "limited distributive 2 discretion" means a discretionary power of distribution that is 3 limited to an ascertainable standard or a reasonably definite 4 standard. 5 (b) An authorized fiduciary that has limited distributive 6 discretion over the principal of the first trust for the benefit of one 7 (1) or more current beneficiaries may exercise the decanting power 8 over the principal of the first trust. 9 (c) Under this section and subject to section 44 of this chapter, 10 a second trust may be created or administered under the law of 11 any jurisdiction. A second trust must grant each beneficiary of the 12 first trust beneficial interests that are substantially similar to the 13 beneficial interests of the beneficiary in the first trust. 14 (d) A power to make a distribution under a second trust for the 15 benefit of a beneficiary who is an individual is substantially similar 16 to a power under the first trust to make a distribution directly to 17 the beneficiary. A distribution is for the benefit of a beneficiary if: 18 (1) the distribution is applied for the benefit of the 19 beneficiary; 20 (2) the beneficiary is under a legal disability or the trustee 21 reasonably believes the beneficiary is incapacitated and the 22 distribution is made as permitted under this article; or 23 (3) the distribution is made as permitted under the terms of 24 the first-trust instrument and the second-trust instrument for 25 the benefit of the beneficiary. 26 (e) If an authorized fiduciary has limited distributive discretion 27 of the principal of a first trust, the fiduciary may only exercise the 28 decanting power under this section over the principal that the 29 authorized fiduciary has limited distributive discretion. 30 Sec. 43. (a) This section applies to any trust that has a 31 beneficiary with a disability, without limitation, whenever a 32 special-needs fiduciary for the trust determines that the beneficiary 33 with a disability may qualify for governmental benefits based on a 34 disability, whether the beneficiary currently receives those benefits 35 or has been adjudicated to be an incapacitated person under 36 IC 29-3. 37 (b) As used in this section, "governmental benefits" means 38 financial aid or services from a state, federal, or other public 39 agency. 40 (c) As used in this section, "special-needs fiduciary" means: 41 (1) a trustee or other fiduciary, other than a settlor, that has 42 discretion to distribute part or all of the principal of a first EH 1205—LS 6169/DI 107 14 1 trust to one or more current beneficiaries; 2 (2) if no trustee or fiduciary has discretion under subdivision 3 (1), a trustee or other fiduciary, other than a settlor, that has 4 discretion to distribute part or all of the income of the first 5 trust to one (1) or more current beneficiaries; or 6 (3) if no trustee or fiduciary has discretion under subdivisions 7 (1) and (2), a trustee or other fiduciary, other than a settlor, 8 that is required to distribute part or all of the income or 9 principal of the first trust to one (1) or more current 10 beneficiaries; 11 with respect to a trust that has a beneficiary with a disability. 12 (d) As used in this section, "special-needs trust" means a trust 13 that the trustee reasonably believes would not be considered a 14 resource for purposes of determining whether a beneficiary with 15 a disability is eligible for governmental benefits. 16 (e) A special-needs fiduciary may exercise the decanting power 17 under section 41 of this chapter over the principal of a first trust 18 as if the fiduciary had authority to distribute principal to a 19 beneficiary with a disability subject to expanded distributive 20 discretion if: 21 (1) a second trust is a special-needs trust or other trust that 22 benefits the beneficiary with a disability; and 23 (2) the special-needs fiduciary determines that an exercise of 24 the decanting power will further the purposes of the first 25 trust. 26 (f) In an exercise of the decanting power under this section, the 27 following rules apply: 28 (1) Except as provided in section 41(f)(2) of this chapter, the 29 interest in the second trust of a beneficiary with a disability 30 may: 31 (A) be a pooled trust as defined by Medicaid law for the 32 benefit of the beneficiary with a disability under 42 U.S.C. 33 1396p(d)(4)(C), as amended and in effect on July 1, 2022; 34 or 35 (B) contain payback provisions complying with 36 reimbursement requirements of Medicaid law under 42 37 U.S.C. 1396p(d)(4)(A), as amended and in effect on July 1, 38 2022. 39 (2) Section 41(f)(3) of this chapter does not apply to the 40 interests of the beneficiary with a disability. 41 (3) Except as affected by a change to the interests of the 42 beneficiary with a disability, the second trust, or if there are EH 1205—LS 6169/DI 107 15 1 two (2) or more second trusts, the second trusts in the 2 aggregate, must grant each other beneficiary of the first trust 3 beneficial interests in the second trusts which are 4 substantially similar to the beneficiary's beneficial interests in 5 the first trust. 6 Sec. 44. (a) As used in this section, "determinable charitable 7 interest" means a charitable interest that is a right to a mandatory 8 distribution currently, periodically, on the occurrence of a 9 specified event, or after the passage of a specified time and that is 10 unconditional or will be held solely for charitable purposes. 11 (b) As used in this section, "unconditional" means not subject 12 to the occurrence of a specified event that is not certain to occur, 13 other than a requirement in a trust instrument that a charitable 14 organization be in existence or qualify under a particular provision 15 of the United States Internal Revenue Code of 1986, as amended 16 and in effect on July 1, 2022, on the date of the distribution, if the 17 charitable organization meets the requirement on the date of 18 determination. 19 (c) If a first trust contains a determinable charitable interest, 20 the attorney general has the rights of a qualified beneficiary and 21 may represent and bind the charitable interest. 22 (d) If a first trust contains a charitable interest, the second trust 23 must not: 24 (1) diminish the charitable interest; 25 (2) diminish the interest of an identified charitable 26 organization that holds the charitable interest; 27 (3) alter any charitable purpose stated in the first-trust 28 instrument; or 29 (4) alter any condition or restriction related to the charitable 30 interest. 31 (e) If there are two (2) or more second trusts, the second trusts 32 shall be treated as one (1) trust for purposes of determining 33 whether the exercise of the decanting power diminishes the 34 charitable interest or diminishes the interest of an identified 35 charitable organization for purposes of subsection (d). 36 (f) If a first trust contains a determinable charitable interest, the 37 second trust that includes a charitable interest pursuant to 38 subsection (c) must be administered under the law of this state 39 unless: 40 (1) the attorney general, after receiving notice under section 41 35 of this chapter, fails to object in a signed record delivered 42 to the authorized fiduciary within the notice period; EH 1205—LS 6169/DI 107 16 1 (2) the attorney general consents in a signed record to the 2 second trust being administered under the law of another 3 jurisdiction; or 4 (3) the court approves the exercise of the decanting power. 5 (g) This chapter does not limit the powers and duties of the 6 attorney general under the laws of this state other than this 7 chapter. 8 Sec. 45. (a) An authorized fiduciary may not exercise the 9 decanting power to the extent the first-trust instrument expressly 10 prohibits exercise of: 11 (1) the decanting power; or 12 (2) a power granted by state law to the fiduciary to distribute 13 part or all of the principal of the trust to another trust or to 14 modify the trust. 15 (b) Exercise of the decanting power is subject to a restriction in 16 the first-trust instrument that expressly applies to exercise of: 17 (1) the decanting power; or 18 (2) a power granted by state law to a fiduciary to distribute 19 the principal of the trust to another trust or to modify the 20 trust. 21 (c) The decanting power of an authorized fiduciary is not 22 precluded by: 23 (1) a general prohibition of the amendment or revocation of 24 a first trust; 25 (2) a spendthrift clause; or 26 (3) a clause restraining the voluntary or involuntary transfer 27 of a beneficiary's interest. 28 (d) Subject to subsections (a) and (b), an authorized fiduciary 29 may exercise the decanting power under this chapter even if the 30 first-trust instrument permits the authorized fiduciary or another 31 person to modify the first-trust instrument or to distribute the 32 principal of the first trust to another trust. 33 (e) If a first-trust instrument contains an express prohibition 34 described in subsection (a) or an express restriction described in 35 subsection (b), the provision must be included in the second-trust 36 instrument. 37 Sec. 46. (a) If a first-trust instrument specifies an authorized 38 fiduciary's compensation, the fiduciary may not exercise the 39 decanting power to increase the fiduciary's compensation above 40 the specified compensation unless: 41 (1) all qualified beneficiaries of the second trust consent to the 42 increase in a signed record; or EH 1205—LS 6169/DI 107 17 1 (2) the increase is approved by the court. 2 (b) If a first-trust instrument does not specify an authorized 3 fiduciary's compensation, the fiduciary may not exercise the 4 decanting power to increase the fiduciary's compensation above 5 the compensation permitted by this article unless: 6 (1) all qualified beneficiaries of the second trust consent to the 7 increase in a signed record; or 8 (2) the increase is approved by the court. 9 (c) A change in an authorized fiduciary's compensation that is 10 incidental to other changes made by the exercise of the decanting 11 power is not an increase in the fiduciary's compensation for 12 purposes of subsections (a) and (b). 13 Sec. 47. (a) Except as otherwise provided in this section, a 14 second-trust instrument must not relieve an authorized fiduciary 15 from liability for breach of trust to a greater extent than the 16 first-trust instrument. 17 (b) A second trust instrument may provide for indemnification 18 of an authorized fiduciary of the first trust or another person 19 acting in a fiduciary capacity under the first trust for any liability 20 or claim that would have been payable from the first trust if the 21 decanting power had not been exercised. 22 (c) A second-trust instrument must not reduce fiduciary liability 23 in the aggregate. 24 (d) Subject to subsection (c), a second-trust instrument may 25 divide and reallocate fiduciary powers among fiduciaries, including 26 one (1) or more trustees, distribution advisors, investment 27 advisors, trust protectors, or other persons, and relieve a fiduciary 28 from liability for an act or failure to act of another fiduciary as 29 permitted by the laws of this state other than this chapter. 30 Sec. 48. An authorized fiduciary must not exercise the decanting 31 power to modify a provision in a first-trust instrument granting 32 another person power to remove or replace the fiduciary unless: 33 (1) the person holding the power consents to the modification 34 in a signed record and the modification applies only to the 35 person; 36 (2) the person holding the power and the qualified 37 beneficiaries of the second trust consent to the modification in 38 a signed record and the modification grants a substantially 39 similar power to another person; or 40 (3) the court approves the modification and the modification 41 grants a substantially similar power to another person. 42 Sec. 49. (a) As used in this section, "grantor trust" means a trust EH 1205—LS 6169/DI 107 18 1 as to which a settlor of a first trust is considered the owner under 2 26 U.S.C. 671 through 677, as amended and in effect on July 1, 3 2022, or 26 U.S.C. 679, as amended and in effect on July 1, 2022. 4 (b) As used in this section, "Internal Revenue Code" means the 5 United States Internal Revenue Code of 1986, as amended and in 6 effect on July 1, 2022. 7 (c) As used in this section "nongrantor trust" means a trust that 8 is not a grantor trust. 9 (d) As used in this section, "qualified benefits property" means 10 property subject to the minimum distribution requirements of 26 11 U.S.C. 401(a)(9), as amended and in effect on July 1, 2022, and any 12 applicable regulations, or to any similar requirements that refer to 13 26 U.S.C. 401(a)(9) or the regulations. 14 (e) An exercise of the decanting power is subject to the following 15 limitations: 16 (1) If a first trust contains property that qualified, or would 17 have qualified but for provisions of this chapter other than 18 this section, for a marital deduction for purposes of the gift or 19 estate tax under the Internal Revenue Code or a state gift, 20 estate, or inheritance tax, the second-trust instrument must 21 not include or omit any term that, if included in or omitted 22 from the trust instrument for the trust to which the property 23 was transferred, would have prevented the transfer from 24 qualifying for the deduction, or would have reduced the 25 amount of the deduction, under the same provisions of the 26 Internal Revenue Code or state law under which the transfer 27 qualified. 28 (2) If the first trust contains property that qualified, or would 29 have qualified but for provisions of this chapter other than 30 this section, for a charitable deduction for purposes of the 31 income, gift, or estate tax under the Internal Revenue Code or 32 a state income, gift, estate, or inheritance tax, the second-trust 33 instrument must not include or omit any term that, if included 34 in or omitted from the trust instrument for the trust to which 35 the property was transferred, would have prevented the 36 transfer from qualifying for the deduction, or would have 37 reduced the amount of the deduction, under the same 38 provisions of the Internal Revenue Code or state law under 39 which the transfer qualified. 40 (3) If the first trust contains property that qualified, or would 41 have qualified but for provisions of this chapter other than 42 this section, for the exclusion from the gift tax described in 26 EH 1205—LS 6169/DI 107 19 1 U.S.C. 2503(b), as amended and in effect on July 1, 2022, the 2 second-trust instrument must not include or omit a term that, 3 if included in or omitted from the trust instrument for the 4 trust to which the property was transferred, would have 5 prevented the transfer from qualifying under 26 U.S.C. 6 2503(b), as amended and in effect on July 1, 2022. If the first 7 trust contains property that qualified, or would have qualified 8 but for provisions of this chapter other than this section, for 9 the exclusion from the gift tax described in 26 U.S.C. 2503(b), 10 as amended and in effect on July 1, 2022, by application of 26 11 U.S.C. 2503(c), as amended and in effect on July 1, 2022, the 12 second-trust instrument must not include or omit a term that, 13 if included in or omitted from the trust instrument for the 14 trust to which the property was transferred, would have 15 prevented the transfer from qualifying under 26 U.S.C. 16 2503(c), as amended and in effect on July 1, 2022. 17 (4) If the property of the first trust includes shares of stock in 18 an S corporation, as defined in 26 U.S.C. 1361, as amended 19 and in effect on July 1, 2022, and the first trust is, or but for 20 provisions of this chapter other than this section would be, a 21 permitted shareholder under any provision of 26 U.S.C. 1361, 22 as amended and in effect on July 1, 2022, an authorized 23 fiduciary may exercise the power with respect to part or all of 24 the S corporation stock only if any second trust receiving the 25 stock is a permitted shareholder under 26 U.S.C. 1361(c)(2), 26 as amended and in effect on July 1, 2022. If the property of 27 the first trust includes shares of stock in an S corporation and 28 the first trust is or, but for provisions of this chapter other 29 than this section, would be a qualified subchapter S trust 30 within the meaning of 26 U.S.C. 1361(d), as amended and in 31 effect on July 1, 2022, the second-trust instrument must not 32 include or omit a term that prevents the second trust from 33 qualifying as a qualified subchapter S trust. 34 (5) If the first trust contains property that qualified, or would 35 have qualified but for provisions of this chapter other than 36 this section, for a zero (0) inclusion ratio for purposes of the 37 generation skipping transfer tax under 26 U.S.C. 2642(c), as 38 amended and in effect on July 1, 2022, the second-trust 39 instrument must not include or omit a term that, if included 40 in or omitted from the first-trust instrument, would have 41 prevented the transfer to the first trust from qualifying for a 42 zero (0) inclusion ratio under 26 U.S.C. 2642(c), as amended EH 1205—LS 6169/DI 107 20 1 and in effect on July 1, 2022. 2 (6) If the first trust is directly or indirectly the beneficiary of 3 qualified benefits property, the second-trust instrument may 4 not include or omit any term that, if included in or omitted 5 from the first-trust instrument, would have increased the 6 minimum distributions required with respect to the qualified 7 benefits property under 26 U.S.C. 401(a)(9), as amended and 8 in effect on July 1, 2022, and any applicable regulations, or 9 any similar requirements that refer to 26 U.S.C. 401(a)(9), as 10 amended and in effect on July 1, 2022, or the regulations. If 11 an attempted exercise of the decanting power violates this 12 subdivision, the trustee is deemed to have held the qualified 13 benefits property and any reinvested distributions of the 14 property as a separate share from the date of the exercise of 15 the power and section 52 of this chapter applies to the 16 separate share. 17 (7) If the first trust qualifies as a grantor trust because of the 18 application of 26 U.S.C. 672(f)(2)(A), as amended and in effect 19 on July 1, 2022, the second trust may not include or omit a 20 term that, if included in or omitted from the first-trust 21 instrument, would have prevented the first trust from 22 qualifying under 26 U.S.C. 672(f)(2)(A), as amended and in 23 effect on July 1, 2022. 24 (8) As used in this subdivision, "tax benefit" means a federal 25 or state tax deduction, exemption, exclusion, or other benefit 26 not otherwise listed in this section, except for a benefit arising 27 from being a grantor trust. Subject to subdivision (9), a 28 second-trust instrument may not include or omit a term that, 29 if included in or omitted from the first-trust instrument, 30 would have prevented qualification for a tax benefit if: 31 (A) the first-trust instrument expressly indicates an intent 32 to qualify for the benefit or the first-trust instrument is 33 clearly designed to enable the first trust to qualify for the 34 benefit; and 35 (B) the transfer of property held by the first trust or the 36 first trust qualified or, but for provisions of this chapter 37 other than this section, would have qualified for the tax 38 benefit. 39 (9) Subject to subdivision (4): 40 (A) except as provided in subdivision (7), the second trust 41 may be a nongrantor trust, even if the first trust is a 42 grantor trust; and EH 1205—LS 6169/DI 107 21 1 (B) except as otherwise provided in subdivision (10), the 2 second trust may be a grantor trust, even if the first trust 3 is a nongrantor trust. 4 (10) An authorized fiduciary may not exercise the decanting 5 power if a settlor objects in a signed record delivered to the 6 fiduciary within the notice period and: 7 (A) the first trust and a second trust are both grantor 8 trusts, in whole or in part, the first trust grants the settlor 9 or another person the power to cause the first trust to 10 cease to be a grantor trust, and the second trust does not 11 grant an equivalent power to the settlor or other person; 12 or 13 (B) the first trust is a nongrantor trust and a second trust 14 is a grantor trust, in whole or in part, with respect to the 15 settlor, unless: 16 (i) the settlor has the power at all times to cause the 17 second trust to cease to be a grantor trust; or 18 (ii) the first-trust instrument contains a provision 19 granting the settlor or another person a power that 20 would cause the first trust to cease to be a grantor trust 21 and the second-trust instrument contains the same 22 provision. 23 Sec. 50. (a) Subject to subsection (b), a second trust may have a 24 duration that is the same as or different from the duration of the 25 first trust. 26 (b) To the extent that property of a second trust is attributable 27 to property of the first trust, the property of the second trust is 28 subject to any rules governing maximum perpetuity, accumulation, 29 or suspension of the power of alienation that apply to property of 30 the first trust. 31 Sec. 51. An authorized fiduciary may exercise the decanting 32 power whether under the first trust's discretionary distribution 33 standard the fiduciary would have made or could have been 34 compelled to make a discretionary distribution of principal at the 35 time of the exercise. 36 Sec. 52. (a) If exercise of the decanting power would be effective 37 under this chapter except that the second-trust instrument in part 38 does not comply with this chapter, the exercise of the power is 39 effective and the following rules apply with respect to the principal 40 of the second trust attributable to the exercise of the power: 41 (1) A provision in the second-trust instrument that is not 42 permitted under this chapter is void to the extent necessary to EH 1205—LS 6169/DI 107 22 1 comply with this chapter. 2 (2) A provision required by this chapter to be in the 3 second-trust instrument that is not contained in the 4 instrument is deemed to be included in the instrument to the 5 extent necessary to comply with this chapter. 6 (b) If a trustee or other fiduciary of a second trust determines 7 that subsection (a) applies to a prior exercise of the decanting 8 power, the fiduciary shall take corrective action consistent with the 9 fiduciary's duties. 10 Sec. 53. (a) As used in this section, "animal trust" means a trust 11 or an interest in a trust created to provide for the care of one (1) or 12 more animals. 13 (b) As used in this section, "protector" means a person 14 appointed in an animal trust to enforce the trust on behalf of the 15 animal or, if no such person is appointed in the trust, a person 16 appointed by the court for that purpose. 17 (c) The decanting power may be exercised over an animal trust 18 that has a protector to the extent the trust could be decanted under 19 this chapter if each animal that benefits from the trust were an 20 individual, if the protector consents in a signed record to the 21 exercise of the power. 22 (d) A protector for an animal has the rights under this chapter 23 of a qualified beneficiary. 24 (e) If a first trust is an animal trust, in an exercise of the 25 decanting power, the second trust must provide that trust property 26 may be applied only to its intended purpose for the period the first 27 trust benefitted the animal. 28 Sec. 54. A reference in this article to a trust instrument or terms 29 of the trust includes a second-trust instrument and the terms of the 30 second trust. 31 Sec. 55. (a) For purposes of law of this state other than this 32 chapter and subject to subsection (b), a settlor of a first trust is 33 deemed to be the settlor of the second trust with respect to the 34 portion of the principal of the first trust subject to the exercise of 35 the decanting power. 36 (b) In determining settlor intent with respect to a second trust, 37 a settlor of the first trust, a settlor of the second trust, and the 38 authorized fiduciary may be considered. 39 Sec. 56. (a) Except as provided in subsection (c), if exercise of 40 the decanting power was intended to distribute all of the principal 41 of the first trust to one (1) or more second trusts, later discovered 42 property belonging to the first trust and property paid to or EH 1205—LS 6169/DI 107 23 1 acquired by the first trust after the exercise of the power is part of 2 the trust estate of the second trust. 3 (b) Except as provided in subsection (c), if exercise of the 4 decanting power was intended to distribute less than all of the 5 principal of the first trust to one (1) or more second trusts, later 6 discovered property belonging to the first trust or property paid to 7 or acquired by the first trust after exercise of the power remains 8 part of the trust estate of the first trust. 9 (c) An authorized fiduciary may provide in an exercise of the 10 decanting power or by the terms of a second trust for disposition 11 of later discovered property belonging to the first trust or property 12 paid to or acquired by the first trust after exercise of the power. 13 Sec. 57. A debt, liability, or other obligation enforceable against 14 property of a first trust is enforceable to the same extent against 15 the property when held by the second trust after exercise of the 16 decanting power. 17 Sec. 58. In applying and construing this uniform act, 18 consideration must be given to the need to promote uniformity of 19 the law with respect to its subject matter among states that enact 20 it. 21 Sec. 59. This chapter modifies, limits, or supersedes the 22 Electronic Signatures in Global and National Commerce Act, 15 23 U.S.C. 7001 as amended and in effect on July 1, 2022, but does not 24 modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. 25 7001(c) as amended and in effect on July 1, 2022, or authorize 26 electronic delivery of any of the notices described in Section 103(b) 27 of that act, 15 U.S.C. 7003(b) as amended and in effect on July 1, 28 2022. 29 Sec. 60. If any provision of this chapter or its application to any 30 person or circumstance is held invalid, the invalidity does not affect 31 other provisions or applications of this chapter that can be given 32 effect without the invalid provision or application, and to this end 33 the provisions of this chapter are severable. 34 SECTION 4. IC 34-30-2-132.7 IS ADDED TO THE INDIANA 35 CODE AS A NEW SECTION TO READ AS FOLLOWS 36 [EFFECTIVE JULY 1, 2022]: Sec. 132.7. IC 30-4-10-34 (Concerning 37 a trustee who reasonably relies on a distribution or modification of 38 a trust that transfers property to a second trust and does not act). EH 1205—LS 6169/DI 107 24 COMMITTEE REPORT Mr. Speaker: Your Committee on Judiciary, to which was referred House Bill 1205, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill do pass. (Reference is to HB 1205 as introduced.) TORR Committee Vote: Yeas 10, Nays 0 _____ COMMITTEE REPORT Madam President: The Senate Committee on Judiciary, to which was referred House Bill No. 1205, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 8, line 27, delete "in an action for" and insert "to any person for any action or". Page 10, line 11, after "by" insert "an authorized fiduciary, a beneficiary, or". Page 16, delete lines 19 through 24, begin a new paragraph and insert: "(c) The decanting power of an authorized fiduciary is not precluded by: (1) a general prohibition of the amendment or revocation of a first trust; (2) a spendthrift clause; or (3) a clause restraining the voluntary or involuntary transfer of a beneficiary's interest.". and when so amended that said bill do pass. (Reference is to HB 1205 as printed January 13, 2022.) BROWN L, Chairperson Committee Vote: Yeas 11, Nays 0. EH 1205—LS 6169/DI 107