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Decanting Discretionary Trusts: State Law and Tax Considerations
September 9, 2004 Full PDF
Alan Halperin and Michelle Wandler's article "Decanting Discretionary Trusts: State Law and Tax Considerations" is featured in the September 9 Tax Management Estates Gifts and Trusts Journal. The article begins with a discussion of the New York statute authorizing trustees to appoint trust property in favor of another trust. The New York statute has become increasingly popular among tax practitioners. As a result, several states have followed New York's lead and have enacted similar statutes, with more expected to follow. The article then examines the federal generation-skipping, gift, estate and income tax consequences of employing the statute. It further explores alternative ways to decant trust assets in favor of another trust.