DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH LIMITED DISCRETION
A. An authorized trustee who has limited discretion to distribute the principal of a trust may distribute all or part of the principal of that trust in favor of a trustee of a second trust as provided by this section.
B. The current beneficiaries of the second trust shall be substantially the same as the current beneficiaries of the first trust, and the successor and presumptive remainder beneficiaries of the second trust shall be substantially the same as the successor and presumptive remainder beneficiaries of the first trust, as determined in the reasonable discretion of the authorized trustee.
C. If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust shall include substantially the same persons who become members of that class after the distribution to the second trust, as determined in the reasonable discretion of the authorized trustee.
D. If the first trust grants a power of appointment to a beneficiary of the trust, the second trust shall grant the power of appointment to the beneficiary in the second trust, and the class of permissible appointees under that power shall be the same as the class of permissible appointees under the power granted by the first trust.
E. The exercise of a power of distribution under this section shall be made by the authorized trustee in good faith, in accordance with the terms and purposes of the trust, and in the interests of the beneficiaries.
Added by Laws 2021, c. 268, § 4, eff. Nov. 1, 2021.