Skip navigation
Nevada Court Denies Permission to Decant Trust

Nevada Court Denies Permission to Decant Trust

The court found that the governing instrument required consent of both trustees.

Merging or decanting an old trust into a new and improved trust has become so popular that some have pushed the edges seeking to expand the scope of what’s possible.

In a recent case (In the Matter of the Fund for the Encouragement of Self Reliance, An Irrevocable Trust, 135 Nev. Adv. Op. No. __ (March 21, 2019)), a trustee tried to decant half of a trust’s assets from the existing charitable trust into a new one.

The court denied the decanting because the trust instrument required a unanimous vote of the trustees to make a distribution.

Only one of the two co-trustees wanted to decant one half of the trust into the new trust. That new post-decanting trust would continue the purpose of the transferor trust but with just one trustee as the sole trustee. The old trust would retain one-half of the assets and have the other co-trustee solely in charge.

The court determined that the requirement in the governing instrument for both trustees to agree had to be met.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.