Petition for Decanting - District of Columbia

PETITION FOR DECANTING — DISTRICT OF COLUMBIA

INSTRUCTIONS

☐ Confirm the first trust is irrevocable and is governed by D.C. law or has its principal place of administration in the District (D.C. Code § 19-1905).
☐ Confirm the trust is not held solely for charitable purposes (D.C. Code § 19-1903(b)).
☐ Determine whether the authorized fiduciary has expanded distributive discretion (§ 19-1911) or limited distributive discretion (§ 19-1912).
☐ Confirm the first-trust instrument does not expressly prohibit or restrict decanting (§ 19-1915).
☐ Prepare the second-trust instrument and the schedule of changes (Part A, Schedule 1).
☐ Give notice in a record at least 60 days before exercise to every person listed in § 19-1907(c).
☐ Confirm tax-sensitive provisions are preserved (§ 19-1919).
☐ Execute the exercise by signed record identifying the first and second trusts (§ 19-1910).
☐ File the optional court petition (Part B) only if instructions or approval are sought.

PART A — NOTICE OF EXERCISE OF DECANTING POWER (D.C. Code § 19-1907)

NOTICE OF INTENDED EXERCISE OF THE DECANTING POWER

TO: Each settlor, qualified beneficiary, holder of a presently exercisable power of appointment, person with the right to remove or replace the authorized fiduciary, other fiduciary of the first trust, fiduciary of the second trust, and the Attorney General for the District of Columbia (if applicable), identified in Section 6 below.

FROM: [________________________________], Authorized Fiduciary (Trustee) of the First Trust.

DATE OF THIS NOTICE: [__/__/____]

PROPOSED EFFECTIVE DATE OF EXERCISE: [__/__/____] (not earlier than 60 days after this Notice is given, unless all persons entitled to notice waive the notice period in a signed record — D.C. Code § 19-1907(f)).

1. THE FIRST TRUST

The First Trust is the [Name of First Trust], created by [________________________________] ("Settlor") under a trust instrument dated [__/__/____] (the "First-Trust Instrument"). A copy of the First-Trust Instrument and all amendments is enclosed (§ 19-1907(e)(3)).

The First Trust is irrevocable. The Settlor is ☐ living ☐ deceased (died [__/__/____]).

Principal place of administration: [________________________________], District of Columbia. Approximate value of trust property: $[__________] as of [__/__/____].

2. THE AUTHORIZED FIDUCIARY AND THE NATURE OF DISCRETION

The undersigned is the authorized fiduciary within the meaning of D.C. Code § 19-1902 because the undersigned ☐ is a trustee ☐ is another fiduciary (not the settlor) ☐ is a special-needs fiduciary (§ 19-1913), with discretion to distribute or direct distribution of part or all of the principal of the First Trust to one or more current beneficiaries.

The undersigned's distributive discretion is (check one):

☐ Expanded distributive discretion — not limited to an ascertainable or reasonably definite standard. The decanting power is exercised under D.C. Code § 19-1911.

☐ Limited distributive discretion — limited to an ascertainable standard or a reasonably definite standard. The decanting power is exercised under D.C. Code § 19-1912, and the second trust(s), in the aggregate, must grant each beneficiary of the First Trust beneficial interests that are substantially similar to that beneficiary's interests in the First Trust.

The governing discretionary distribution clause of the First-Trust Instrument reads:

"[Quote verbatim the discretionary distribution language from the First-Trust Instrument.]"

3. THE SECOND TRUST

The Second Trust is the [Name of Second Trust]. The Second Trust ☐ is a newly created trust ☐ is the First Trust as modified under the Decanting Code ☐ is an existing trust. A copy of each second-trust instrument is enclosed (§ 19-1907(e)(4)).

Trustee(s) of the Second Trust:

4. MANNER OF EXERCISE (D.C. Code § 19-1907(e)(1))

The authorized fiduciary intends to exercise the decanting power by appointing ☐ all ☐ the following portion of the principal of the First Trust to the Second Trust: [________________________________].

Reason for the proposed decanting: [________________________________________________].

The differences between the First Trust and the Second Trust are described in Schedule 1 below.

5. PROPERTY DISTRIBUTED / REMAINING (D.C. Code § 19-1910)

Property of the First Trust to be distributed to the Second Trust: [________________________________].
Property, if any, that remains in the First Trust: [________________________________].

6. PERSONS GIVEN NOTICE (D.C. Code § 19-1907(c))

The notice period runs from the day notice is given; exercise before it expires requires a signed waiver by all persons entitled to notice (D.C. Code § 19-1907(f)).

7. RIGHT TO OBJECT / APPLY TO COURT (D.C. Code § 19-1909)

Any person entitled to notice may file an application under D.C. Code § 19-1909 asserting that the exercise is ineffective, an abuse of discretion, or a breach of fiduciary duty.

SCHEDULE 1 — COMPARISON OF FIRST TRUST AND SECOND TRUST

TRUSTEE CERTIFICATION OF COMPLIANCE (D.C. Code §§ 19-1911, 19-1912, 19-1915, 19-1919)

The undersigned authorized fiduciary certifies that the proposed exercise of the decanting power:

☐ Is consistent with the fiduciary duties owed under § 19-1904 and the purposes of the First Trust.
☐ Does not directly add a current, presumptive remainder, or successor beneficiary contrary to § 19-1911(c)(1)–(2). A power of appointment may have a broader class of permissible appointees only as allowed by § 19-1911(d)–(e); a special-needs decanting must meet § 19-1913.
☐ Does not reduce or eliminate a vested interest (§ 19-1911(c)(3)), except as § 19-1913(c)(2) permits for the beneficiary with a disability in a qualifying special-needs decanting.
☐ Under limited distributive discretion, grants each beneficiary beneficial interests that are substantially similar to those in the First Trust (§ 19-1912(c)).
☐ Is not prohibited or restricted by the First-Trust Instrument; any express prohibition or restriction is carried into the Second Trust (§ 19-1915).
☐ Does not jeopardize the marital deduction, the charitable deduction, the GST zero inclusion ratio (26 U.S.C. § 2642(c); Treas. Reg. § 26.2601-1(b)(4)), S-corporation shareholder eligibility, grantor-/nongrantor-trust classification, or qualified-benefits minimum distributions (§ 19-1919).
☐ Does not diminish any charitable interest, and notice has been given to the Attorney General where required (§ 19-1914).

EXECUTION (D.C. Code § 19-1910)

________________________________
[Authorized Fiduciary / Trustee Signature] Date: [__/__/____]

DISTRICT OF COLUMBIA )
) ss.:

This record was acknowledged before me on [__/__/____] by [________________________________] as authorized fiduciary of the [Name of First Trust].

________________________________
Notary Public, District of Columbia
My commission expires: [__/__/____]

PART B — OPTIONAL PETITION TO THE SUPERIOR COURT (D.C. Code § 19-1909)

SUPERIOR COURT OF THE DISTRICT OF COLUMBIA
PROBATE DIVISION

Case No.: [________________________________]

PETITION FOR INSTRUCTIONS AND APPROVAL OF EXERCISE OF DECANTING POWER

Petitioner, as Trustee of the First Trust, states:

1. Parties. Petitioner is the authorized fiduciary of the [Name of First Trust]. The interested persons are the settlor (if living), the qualified beneficiaries, and the other persons entitled to notice under D.C. Code § 19-1907(c).

2. Jurisdiction and venue. This Court has jurisdiction under D.C. Code §§ 19-1302.01 (role of court in administration of trust) and 19-1302.02 (jurisdiction over trustee and beneficiary); the Superior Court of the District of Columbia, Probate Division, has jurisdiction over trust matters, and venue is proper because the First Trust's principal place of administration is in the District of Columbia.

3. The First Trust. The First Trust is irrevocable, was created by [____________] on [__/__/____], and is described in Part A. A copy is attached as Exhibit A.

4. Authority to decant. Petitioner has ☐ expanded (§ 19-1911) ☐ limited (§ 19-1912) distributive discretion and may exercise the decanting power.

5. The proposed decanting. Petitioner proposes to appoint ☐ all ☐ part of the First Trust principal to the Second Trust ([Name of Second Trust]), attached as Exhibit B, with the changes shown in Schedule 1 (Exhibit C).

6. Notice. Notice was given under D.C. Code § 19-1907(c) on [__/__/____] (Exhibit D). ☐ No objection has been received. ☐ Objection(s) received: [____________].

7. Compliance. The proposed exercise complies with §§ 19-1911/19-1912, 19-1915, and 19-1919, and does not jeopardize tax-sensitive provisions, as certified in Part A.

WHEREFORE, Petitioner respectfully requests that the Court enter an Order under D.C. Code § 19-1909:

A. Finding jurisdiction and proper venue;
B. Instructing that the proposed exercise of the decanting power is permitted under the District of Columbia Uniform Trust Decanting Code and consistent with Petitioner's fiduciary duties;
C. Approving the exercise of the decanting power and the appointment of First-Trust property to the Second Trust;
D. ☐ Appointing a special fiduciary under § 19-1909, if requested;
E. Granting other relief needed to carry out the purposes of the Decanting Code (§ 19-1909(a)(7)).

VERIFICATION

Under penalty of perjury under the laws of the District of Columbia, I declare that I am the Petitioner, that I have read the foregoing Petition, and that the facts stated are true and correct to the best of my knowledge and belief.

________________________________
[Trustee-Petitioner Signature] Date: [__/__/____]

________________________________
[Attorney Name], D.C. Bar No. [____________]
[Firm, Address, Telephone, Email]
Attorney for Petitioner

EXHIBITS

• Exhibit A: First-Trust Instrument dated [__/__/____] and all amendments
• Exhibit B: Second-Trust Instrument(s)
• Exhibit C: Schedule 1 — comparison of First Trust and Second Trust
• Exhibit D: Notices given under D.C. Code § 19-1907 and proofs of delivery
• Exhibit E: Signed waivers of the 60-day notice period (if obtained)
• Exhibit F: Tax analysis under D.C. Code § 19-1919 (marital/charitable/GST/S-corp/grantor-trust)

DISTRICT OF COLUMBIA PRACTICE NOTES

• Recent statute. The Uniform Trust Decanting Code was enacted by D.C. Law 25-266 and took effect March 7, 2025. Confirm current section numbering against the official D.C. Code (Title 19, Chapter 19) before filing, as a new chapter's internal numbering may be re-codified.
• Nonjudicial by default. Under D.C. Code § 19-1907(b), an authorized fiduciary may exercise the decanting power without consent and without court approval. Part B is optional.
• 60-day notice. D.C. Code § 19-1907(c) requires notice in a record at least 60 days before exercise to the full list of recipients; exercise before the period expires requires a signed waiver by all persons entitled to notice (§ 19-1907(f)).
• Two discretion tracks. Expanded discretion (§ 19-1911) allows broader changes but may not add beneficiaries or reduce vested interests. Limited discretion (§ 19-1912) requires substantially similar beneficial interests.
• Trust limitation on decanting. § 19-1915 — a general prohibition on amendment/revocation or a spendthrift clause does NOT by itself block decanting, but an express prohibition/restriction does and must be carried into the second trust.
• Tax limits. § 19-1919 prohibits decanting that would impair the marital or charitable deduction, GST zero inclusion ratio, S-corporation eligibility, qualified-benefits minimum distributions, or (on settlor objection) grantor-trust status.
• Charitable interests. § 19-1914 gives the Attorney General the rights of a qualified beneficiary and bars diminishing a charitable interest.

SOURCES AND REFERENCES

• District of Columbia Uniform Trust Decanting Code, D.C. Code § 19-1901 et seq. (enacted by D.C. Law 25-266, eff. March 7, 2025) — D.C. Council Code, https://code.dccouncil.gov/us/dc/council/code/titles/19/chapters/19
• D.C. Code § 19-1912 (Decanting under limited distributive discretion), https://code.dccouncil.gov/us/dc/council/code/sections/19-1912
• D.C. Code § 19-1915 (Trust limitation on decanting), https://law.justia.com/codes/district-of-columbia/title-19/chapter-19/section-19-1915/
• District of Columbia Uniform Trust Code, D.C. Code § 19-1301 et seq. (definitions, judicial proceedings, jurisdiction, venue)
• Uniform Trust Decanting Act (2015), Uniform Law Commission
• 26 U.S.C. § 2642(c) (GST zero inclusion ratio); Treas. Reg. § 26.2601-1(b)(4) (grandfathered GST trust modifications)