Decanting a Trust: Is There Reason to “Wine” About It?

Most people are familiar with decanting wine but do not know that a trust can also be decanted. According to Merriam-Webster.com, the term “decant” is defined as, “to pour out, transfer, or unload as if by pouring.” That is essentially what decanting a trust is. When a trust is decanted, the authorized trustee uses their authority to invade the trust principal to appoint all or some of the assets of the original trust to another trust. The authority of a trustee to decant a trust has been recognized in Florida since 1940. (Phipps v. Palm Beach Trust Co., 196 So. 299 (Fla. 1940)). The power to invade principal in trust or “decant” was later codified in Sec. 736.04117, F.S.

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