Decanting a ‘HEMS Only’ Trust in Favor of an SNT

March 14, 2024 | Joseph T. La Ferlita | Nicholas G. Moneta | Trusts & Estates

In 1992, New York became the first state in the nation to enact a decanting statute, namely, New York Estates, Powers and Trusts Law (EPTL) 10-6.6. The statute subsequently was modified several times. The 2011 amendment was notable because it greatly liberalized the statute’s application. Today, New York’s decanting statute is a tool frequently used by practitioners.

One widely welcomed feature of the 2011 amendment was its attempt to facilitate decantings in favor of a supplemental needs trust (SNT) that conforms to the provisions of EPTL 7-1.12. In that regard, it codified New York’s emerging public policy of allowing reformation of certain irrevocable trusts so they could qualify as SNTs when appropriate.

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This article appeared in the Trusts And Estates Law Section Journal, a publication of the New York State Bar Association.

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