Article on Decanting Pre-ATRA Trusts

Robert L. Moshman (Attorney, New York and New Jersey) recently published his article entitled, Decanting Pre-ATRA Trusts: An Interview with Meryl G. Finkelstein Esq.,The Estate Analyst (Mar. 2013). As its title suggests, the aritcle focuses the use of decanting assets within a trust following the passage of ATRA. An excerpt from the article is below:

Decanting a fine wine can enhance its flavor when done properly. Awaken the grapes and celebrate life! However, a wine decanting miscue can leave you with woe and sorrow, not to mention a sour taste, an expensive bottle that no one wants, the scorn of aficionados, and a decanter that needs to be washed out and put away.

Decanting assets from a trust can be equally tempting and rewarding, especially in the wake of the American Taxpayer Relief Act of 2012 (ATRA). However, there are many more considerations and variables than one might think. States have different statutory and common law parameters, and the IRS may also have something to say about decanting from a trust.