Just as you would decant wine from one vessel to another, decanting allows the trustee of an irrevocable trust to move the assets to a new trust with more favorable terms- without court intervention or permission of beneficiaries.   Under New York’s decanting statute, EPTL § 10-6.6, the allowable changes to the trust terms depends on the “authorized” trustee’s discretion in the original trust. A trustee with unlimited discretion over distributions of principal can appoint the assets to a new trust that excludes the original beneficiaries. Although a new beneficiary cannot be added, the trustee can give a beneficiary a power of appointment, allowing the beneficiary to leave assets to anyone of his or her choosing at death. A trustee without unlimited discretion may appoint the principal into another trust but the beneficiaries and the original power of appointment, must remain the same. Written notice must be given to the trust settlor, any party with power to remove trustee, and any “interested parties” in the original trust. The notice must provide whether a portion or the entire trust is being decanted and copies of the original trust and new trust. The new trust becomes valid 30 days after notice is given. The noticed parties may object and conceivably seek judicial intervention before the 30 days run. However, the statute is straightforward and if the authorized trustee has the requisite power to decant – a beneficiary can be removed and the dispersal terms can be changed, without recourse.  A trustee can also seek judicial approval prior to decanting. Additionally, authorization to decant can be written into the trust instrument with less stringent requirements than those mandated by EPTL § 10-6.6.