AR HB1749

Adopts the Uniform Trust Decanting Act as Arkansas Code Chapter 78, allowing authorized fiduciaries to distribute property from an existing irrevocable trust (first trust) to one or more new trusts (second trusts) or modify trust terms without court approval

Requires 60-day advance written notice to settlors, qualified beneficiaries, power of appointment holders, and other fiduciaries before exercising decanting power, though parties may waive the notice period

Establishes different decanting rules based on fiduciary discretion level: trustees with "expanded distributive discretion" have broader modification powers, while those with "limited distributive discretion" must maintain substantially similar beneficial interests in second trusts

Includes protections for charitable interests, special-needs beneficiaries, and various federal tax benefits including marital deductions, charitable deductions, S corporation eligibility, and generation-skipping transfer tax treatment

Takes effect January 1, 2026, and applies to trusts with principal administration in Arkansas or governed by Arkansas law, regardless of when the trust was created