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Minutes for HB2172 - Committee on Judiciary
Short Title
Enacting the uniform trust decanting act.
Minutes Content for Tue, Jan 31, 2023
Chairperson Patton opened the hearing on HB2172. Natalie Scott provided an overview of the bill. (Attachment 5) She stood for questions.
Proponent
Mark Knackendoffel (Attachment 6) explained the purpose of trust decanting is to provide greater flexibility to a trustee by allowing the trustee to modify a trust by distributing its assets to another trust. Decanting can be an especially useful tool for changing outdated terms of an otherwise irrevocable trust. Because decanting could be abused to defeat the settlor’s intent, the Uniform Trust Decanting Act (UTDA) contains protections that permit decanting for appropriate purposes while preventing abuse and preserving the intent of the settlor. The statutory framework provided under the UTDA specifically describes the trustee’s power to decant, imposes limits on that power to protect beneficiaries and the settlor’s intent, protects against inadvertent tax consequences, provides procedural rules for exercising the power, and provides for appropriate remedies. The summary, included in the testimony, from the Uniform Law Commission and the document, “Why Your State Should Adopt the UTDA,” provide a helpful overview of the Act’s provisions. The full UTDA with uniform comments and Kansas comments is also attached and provides an even more detailed explanation of each provision.
Written Proponent
Will Bergman, In-House Counsel, Midwest Trust Company (Attachment 7)
Joe Karnes, Legislative Representative, The Trust Division of Kansas Bankers Association (Attachment 8)
Chairperson Patton closed the hearing on HB2172.
Chairperson Patton adjourned the meeting at 4:08 pm.
