LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6169 NOTE PREPARED: Feb 28, 2022
BILL NUMBER: HB 1205 BILL AMENDED: Feb 10, 2022
SUBJECT: Uniform Trust Decanting Act and Trustee Duties.
FIRST AUTHOR: Rep. Young J BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Freeman
FUNDS AFFECTED: GENERAL IMPACT: No Fiscal Impact
DEDICATED
FEDERAL
Summary of Legislation: The bill allows a trustee of an irrevocable trust to appoint a successor trustee or
multiple trustees. It provides that a trustee's power to appoint a successor trustee includes the power to
allocate trustee powers to one or more trustees. It enacts the uniform trust decanting act. It 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. It requires that a modification be consistent with
a settlor's or charitable organization's intent. It permits the trustee of an existing trust to make modifications
to or distributions from an existing trust for the benefit of a disabled beneficiary. It prohibits a trustee from
being required to decant. It requires advanced notice to all qualified beneficiaries. It also 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 Date: July 1, 2022.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
HB 1205 1 Local Agencies Affected:
Information Sources:
Fiscal Analyst: Corrin Harvey, 317-234-9438.
HB 1205 2