Sec. 42. (a) As used in this section, “limited distributive discretion” means a discretionary power of distribution that is limited to an
ascertainable standard or a
reasonably definite standard.
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Terms Used In Indiana Code 30-4-10-42
- ascertainable standard: means a standard relating to an individual's health, education, support, or maintenance as defined by Indiana Code 30-4-10-3
- authorized fiduciary: means :
Indiana Code 30-4-10-4
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- beneficiary: means a person that:
Indiana Code 30-4-10-5
- decanting power: means the power of an authorized fiduciary under this chapter to:
Indiana Code 30-4-10-12
- Fiduciary: A trustee, executor, or administrator.
- first trust: means a trust over which an authorized fiduciary may exercise the decanting power. See Indiana Code 30-4-10-15
- first-trust instrument: means the trust instrument for a first trust. See Indiana Code 30-4-10-16
- Principal: has the meaning set forth in IC 30-2-14-10. See Indiana Code 30-4-1-2
- reasonably definite standard: means a clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of Indiana Code 30-4-10-24
- second trust: means :
Indiana Code 30-4-10-26
- second-trust instrument: means the trust instrument for a second trust. See Indiana Code 30-4-10-27
(c) Under this section and subject to section 44 of this chapter, a second trust may be created or administered under the law of any jurisdiction. A second trust must grant each beneficiary of the first trust beneficial interests that are substantially similar to the beneficial interests of the beneficiary in the first trust.
(d) A power to make a distribution under a second trust for the benefit of a beneficiary who is an individual is substantially similar to a power under the first trust to make a distribution directly to the beneficiary. A distribution is for the benefit of a beneficiary if:
(1) the distribution is applied for the benefit of the beneficiary;
(2) the beneficiary is under a legal disability or the trustee reasonably believes the beneficiary is incapacitated and the distribution is made as permitted under this article; or
(3) the distribution is made as permitted under the terms of the first-trust instrument and the second-trust instrument for the benefit of the beneficiary.
(e) If an authorized fiduciary has limited distributive discretion of the principal of a first trust, the fiduciary may only exercise the decanting power under this section over the principal that the authorized fiduciary has limited distributive discretion.
As added by P.L.161-2022, SEC.3.
