On Aug. 17, 2011, Gov. Andrew M. Cuomo signed a bill liberalizing New York’s decanting statute (EPTL §10-6.6(b)). New York was the first state to enact decanting legislation in 1992. The new law, which is effective immediately and applies to all trusts created before or after the effective date, broadens the scope and application of EPTL §10-6.6(b), bringing New York’s statute more in line with other states’ more liberal decanting statutes.
The ability to decant means the trustee of an irrevocable trust may appoint the assets of an existing trust to a new trust with greater flexibility or more favorable terms. The decanting statute has been a highly effective tool for trustees faced with changed circumstances, administrative inflexibility and tax inefficiencies, but until now has had limited application.
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