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Irrevocable Trusts However, they can be decanted by pouring the irrevocable trust's assets into a new trust with altered terms. While an irrevocable trust can be decanted without the beneficiaries' consent and court oversight, trustees are still subject to some limitations.
The following are some alternatives that might be available to existing SLATs: Decant or modify the SLAT to eliminate or modify the spouse's interest in the trust. This option brings with it a host of fiduciary concerns that probably would be heightened in the event of a divorce.
While irrevocable trusts cannot be revoked, they can be modified in certain ways through the process of decanting. The decanting term refers to the pouring of assets of one irrevocable trust into another irrevocable trust, just like how a bottle of wine might be poured or decanted into another vessel.
California recently passed and enacted the Uniform Trust Decanting Act, which allows trustors and trustees to modify the terms of a trust without court oversight or the approval of the trust's beneficiaries.
Decanting is the term generally used to describe the distribution of trust property to another trust pursuant to the trustee's discretionary authority to make distributions to, or for the benefit of, one or more beneficiaries.