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Fixing or Changing a Trust · California

What is trust decanting, and can a trustee do it without telling the beneficiaries?

Decanting is the practice of a trustee pouring the assets of an existing irrevocable trust into a new trust with different terms, and no, a trustee cannot do it in California without telling the beneficiaries. The name comes from wine: you move the contents into a fresh bottle and leave the sediment behind. The theory is that a trustee who already holds discretion to distribute principal for a beneficiary can exercise it by distributing to a new trust for that beneficiary instead of outright. Done properly, decanting can fix an administrative headache, add a special needs provision so a disabled beneficiary does not lose public benefits, consolidate three unwieldy subtrusts, or replace a trustee succession scheme that has stopped working. California has adopted the Uniform Trust Decanting Act at Prob. Code §§ 19501–19530, which gives an authorized fiduciary a statutory power to decant that exists independently of the trust instrument. So the analysis does not begin and end with what your document says about decanting. The power comes from the statute, and the statute comes with conditions.

The condition that answers your question is notice. Prob. Code § 19507 requires the authorized fiduciary to give notice not later than 60 days before the decanting power is exercised. The notice goes to the living settlors of the first trust, to the qualified beneficiaries, to anyone holding a presently exercisable power of appointment, to anyone holding a right to remove or replace the fiduciary, to the other fiduciaries of the first trust and the fiduciaries of the second trust, and to the Attorney General where a charitable interest is involved. Sixty days before, not after, and not at the next accounting. A trustee who decants quietly has not merely created a fight with the family; he has skipped a statutory requirement. The general duties still apply on top. Under Prob. Code §§ 16060–16062 a trustee must keep beneficiaries reasonably informed of the trust and its administration, report on reasonable request, and account at least annually, on termination, and on a change of trustee. A trustee who wants more protection than notice alone gives can petition the probate court for instructions under Prob. Code § 17200 and have the proposed change blessed in advance, and a beneficiary who believes a decanting was improper uses that same statute to put the question in front of a judge.

This page is general information about California law, not legal advice, and does not create an attorney-client relationship. Figures and deadlines change, and every family’s situation is different. Last reviewed August 2026.

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