Florida’s recent legislative change under Senate Bill 262 has introduced significant updates to the Florida Trust Code (§736.04117). Enacted on June 20, 2025, this amendment allows “authorized trustees” to decant assets into a new trust, even one created solely for that purpose, without requiring court approval in certain circumstances. For individuals working with a trusts lawyer, these changes could offer more flexible solutions for managing and adapting trusts over time.
Understanding How Decanting Works
In trust law, “decanting” refers to the process of transferring assets from one trust into another with updated terms. Much like pouring wine into a new container to remove sediment, trustees can “pour” the trust’s assets into a fresh legal structure while leaving outdated or undesirable provisions behind. This legal tool allows trustees to adjust terms to better meet the grantor’s intent or to reflect changing laws, family situations, or tax planning needs.
Under SB 262, an authorized trustee, someone who is not the settlor and does not have unrestricted access to the trust’s principal, can take advantage of these powers even when the original trust includes a HEMS (Health, Education, Maintenance, and Support) standard. This means more trusts can now be updated without lengthy legal proceedings.
Who Benefits From Expanded Trustee Powers
The primary beneficiaries of SB 262 are trust beneficiaries themselves. With more flexible modification options, trustees can adapt to life events such as disability, divorce, or financial hardship without risking the trust’s integrity. Grantors benefit as well, knowing their original intent can be honored while still allowing for adjustments over time.
For example, if a beneficiary develops special needs after the trust is created, the trustee can decant the trust into a new structure that qualifies for government benefit programs. Similarly, if tax laws change, a trustee could restructure the trust to minimize liabilities without undermining the grantor’s core objectives.
Practical Scenarios For Decanting Under SB 262
One common scenario is adjusting outdated trust terms. Suppose a trust created in 2005 restricts investments to certain asset types no longer optimal for the beneficiary’s needs. The trustee can now decant the trust into a new one with modern investment guidelines. Another example involves family dynamics. If a trust provides for distributions to a child who is now experiencing significant debt issues, a trustee could create a new trust with enhanced creditor protection, safeguarding assets for the long term. Even in blended families, decanting can be used to clarify inheritance structures, making certain that children from prior marriages are protected while still supporting a surviving spouse.
Personalized Planning Under New Authorities
For trustees, these expanded powers mean greater responsibility. They must still act in good faith, honor fiduciary duties, and make decisions in the beneficiaries’ best interests. That’s why careful consultation with legal and financial professionals remains necessary. With SB 262, trustees now have more tools to tailor trust structures to unique situations, helping families preserve wealth and adapt to life’s inevitable changes.
If you’re a trustee or beneficiary interested in how these new rules might affect an existing trust, now is the time to review your options. Our team of professionals may connect you with resources and insights to manage these changes effectively. To learn more about how your trust could benefit from these new powers, consider listing your site with Estate Planning Pros and stay informed on the latest developments in trust law.