Estate planning is not just about preparing documents and putting them in a drawer. It is about making sure those documents continue to reflect your family’s needs—even as life changes. If you have a trust that no longer works the way it should, there is a legal tool that may help fix it without starting over: trust decanting.
At Johnson Legal, PLLC, we help Wilmington families build estate plans that grow with them. If you are hearing about trust decanting for the first time—or wondering if it could apply to a trust your family already has—we are here to explain what it is, how it works, and when it might make sense to consider.
Trust decanting is the process of transferring the assets from an existing irrevocable trust into a new trust with updated terms. Think of it like “pouring” the contents of one trust into another, just like you might pour wine from one bottle into a better container. The idea is that the new trust reflects updated goals, clearer language, or better planning tools.
In North Carolina, trust decanting is legally allowed under the North Carolina Uniform Trust Code. This process can be especially helpful if a trust was written many years ago and no longer reflects your intentions or current laws.
There are many reasons a family might need to update an irrevocable trust. While these types of trusts are designed to be permanent, trust decanting offers flexibility when circumstances change. Here are some common situations where trust decanting may be helpful:
Laws change, and so do best practices in estate planning. If your trust was drafted under old tax laws or uses language that is confusing or overly rigid, decanting may allow you to modernize the trust.
Maybe a beneficiary has developed special needs, or you want to provide asset protection due to a divorce or financial instability. Decanting may help add new terms to protect that beneficiary’s interest without disinheriting them.
If the original trust named a trustee who is no longer available—or who is not the right fit—you may be able to decant into a new trust that names someone else. In some cases, trust decanting can also provide clearer rules for how trustees are appointed or replaced.
Older trusts may lack provisions that allow for streamlined management, such as investment powers, digital asset access, or clear succession terms. Creating a new trust through decanting may provide the clarity and authority needed to manage the trust effectively.
Trust decanting is typically initiated by the trustee, not the beneficiaries. The trustee must have the legal authority to distribute trust assets and must follow certain rules set by North Carolina law. These rules are in place to protect beneficiaries and ensure that the trustee is acting in good faith.
Here is a simplified look at the process:
Not necessarily. A key principle of trust decanting is that the new trust must remain consistent with the original intent of the person who created it. That means the overall group of beneficiaries should stay the same, though you may be able to adjust how and when distributions are made.
In some cases, if the original trust gives the trustee broad discretion, there may be more flexibility in adjusting the structure of distributions to protect the interests of certain beneficiaries.
At Johnson Legal, we always recommend a careful legal review before any changes are made. Protecting your loved ones—and honoring your original wishes—should always remain the top priority.
Trust decanting can be a powerful tool in your estate plan. Some of the benefits include:
Perhaps most importantly, decanting can help keep your estate plan aligned with your values and goals—even years after it was first created.
While trust decanting can be helpful in many cases, it is not always the right solution. You may not be able to decant a trust if:
That is why it is important to work with an experienced estate planning attorney who can help you evaluate your options and avoid potential legal pitfalls.
Because trust decanting involves careful interpretation of legal documents, fiduciary responsibilities, and North Carolina statutes, it is not something that should be done without legal guidance. At Johnson Legal, we take the time to understand your existing trust, your goals, and the needs of your beneficiaries.
We will walk you through the process step by step, ensuring that your new trust reflects everything that matters to you—without unnecessary complexity or delay.
Life changes. Families grow. Needs evolve. Trust decanting is one way to make sure your estate plan keeps up.
If you have an older trust that no longer works the way you hoped—or if you are not sure whether trust decanting is an option—we are here to help. At Johnson Legal, PLLC, we serve Wilmington-area families with compassion, clarity, and care. Our goal is to give you peace of mind that your estate plan still fits your life.
Contact us today to schedule a consultation.
Let us help you explore whether trust decanting is the right solution for you or your loved ones.
Shane T. Johnson is the CEO and Managing Partner of Johnson Legal, an estate planning and business law firm in Wilmington, NC. With years of experience in estate and business law, he has zealously represented clients in various legal matters, including small business formation and purchasing, estate planning, probate, domestic violence, and other legal cases.
Shane received his Juris Doctor from the University of Wyoming and is a member of the North Carolina Bar Association. He has received numerous accolades for her work, including being named among the Best Probate Lawyers in Wilmington by Expertise.com.
