Decanting has been Texas law for almost three months and several articles have discussed what can be accomplished by decanting (e.g., Bill Pargaman’s 2013 Legislative Update). This article will discuss the documents needed to decant under Texas law without obtaining the approval of the court. (While a court approval can be obtained, your client probably wants to avoid the cost of doing so.)
While the ability of the trustee to decant depends on whether the trustee has full discretion under the Texas Property Code (TPC) § 112.072 or limited discretion under TPC § 112.073, the decanting process is the same for both. The requirement that notice be provided to trust beneficiaries mentions an authorized trustee and does not differentiate between full-discretion and limited-discretion trustees. TPC § 112.074(a).
Originally published in Real Estate, Probate, and Trust Law reporter in December 2013.
Please see full publication below for more information.
