CA SB909

Authorizes fiduciaries of irrevocable trusts to distribute trust property to one or more new trusts or modify existing trust terms without beneficiary consent or court approval, subject to specified limitations and notice requirements.

Requires authorized fiduciaries to provide notice at least 60 days before exercising the decanting power to qualified beneficiaries, settlors, power holders, and other interested parties, with a 59-day period for recipients to contest the action in court.

Prohibits decanting from reducing vested beneficiary interests, diminishing charitable interests, or including new beneficiaries unless specifically authorized by the type of discretion the fiduciary holds.

Restricts use of decanting power to preserve tax benefits (marital deductions, charitable deductions, generation-skipping transfer tax benefits) and prohibits fiduciaries from increasing their own compensation without beneficiary consent or court approval.

Does not apply to trusts held solely for charitable purposes and allows trust instruments to restrict or prohibit the decanting power.