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760 ILCS 3/1211

    (760 ILCS 3/1211)
    Sec. 1211. Decanting power under expanded distributive discretion.
    (a) In this Section:
        (1) "Noncontingent" right means a right that is not
    
subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. The term does not include a right held by a beneficiary if any person has discretion to distribute property subject to the right of any person other than the beneficiary or the beneficiary's estate.
        (2) "Successor beneficiary" means a beneficiary that
    
on the date the beneficiary's qualification is determined is not a qualified beneficiary. The term does not include a person that is a beneficiary only because the person holds a nongeneral power of appointment.
        (3) "Vested interest" means:
            (A) a right to a mandatory distribution that is
        
a noncontingent right as of the date of the exercise of the decanting power;
            (B) a current and noncontingent right, annually
        
or more frequently, to a mandatory distribution of income, a specified dollar amount, or a percentage of value of some or all of the trust property;
            (C) a current and noncontingent right, annually
        
or more frequently, to withdraw income, a specified dollar amount, or a percentage of value of some or all of the trust property;
            (D) a presently exercisable general power of
        
appointment; or
            (E) a right to receive an ascertainable part of
        
the trust property on the trust's termination that is not subject to the exercise of discretion or to the occurrence of a specified event that is not certain to occur.
    (b) Subject to subsection (c) and Section 1214, an authorized fiduciary that has expanded distributive discretion to distribute the principal of a first trust to one or more current beneficiaries may exercise the decanting power over the principal of the first trust.
    (c) Subject to Section 1213, in an exercise of the decanting power under this Section, a second trust may not:
        (1) include as a current beneficiary a person that
    
is not a current beneficiary of the first trust, except as otherwise provided in subsection (d);
        (2) include as a presumptive remainder beneficiary
    
or successor beneficiary a person that is not a current beneficiary, presumptive remainder beneficiary, or successor beneficiary of the first trust, except as otherwise provided in subsection (d); or
        (3) reduce or eliminate a vested interest.
    (d) Subject to subsection (c)(3) and Section 1214, in an exercise of the decanting power under this Section, a second trust may be a trust created or administered under the law of any jurisdiction and may:
        (1) retain a power of appointment granted in the
    
first trust;
        (2) omit a power of appointment granted in the first
    
trust, other than a presently exercisable general power of appointment;
        (3) create or modify a power of appointment if the
    
powerholder is a current beneficiary of the first trust and the authorized fiduciary has expanded distributive discretion to distribute principal to the beneficiary; and
        (4) create or modify a power of appointment if the
    
powerholder is a presumptive remainder beneficiary or successor beneficiary of the first trust, but the exercise of the power may take effect only after the powerholder becomes, or would have become if then living, a current beneficiary.
    (e) A power of appointment described in subsection (d)(1) through (4) of subsection (d) may be general or nongeneral. The class of permissible appointees in favor of which the power may be exercised may be broader than or different from the beneficiaries of the first trust.
    (f) If an authorized fiduciary has expanded distributive discretion to distribute part but not all of the principal of a first trust, the fiduciary may exercise the decanting power under this Section over that part of the principal over which the authorized fiduciary has expanded distributive discretion.
(Source: P.A. 101-48, eff. 1-1-20.)