Vermont § 1414 - Protection of charitable interest

§ 1414. Protection of charitable interest

• (a) As used in this section: (1) “Determinable charitable interest” means a charitable interest that is a right to
  a mandatory distribution currently, periodically, on the occurrence of a specified
  event, or after the passage of a specified time and that is unconditional or will
  be held solely for charitable purposes. (2) “Unconditional” means not subject to the occurrence of a specified event that is not
  certain to occur, other than a requirement in a trust instrument that a charitable
  organization be in existence or qualify under a particular provision of the U.S. Internal
  Revenue Code of 1986 on the date of the distribution, if the charitable organization
  meets the requirement on the date of determination. (b) If a first trust contains a determinable charitable interest, the Attorney General
  shall have the rights of a qualified beneficiary and may represent and bind the charitable
  interest. (c) If a first trust contains a charitable interest, the second trust or trusts shall
  not: (1) diminish the charitable interest; (2) diminish the interest of an identified charitable organization that holds the charitable
  interest; (3) alter any charitable purpose stated in the first-trust instrument; or (4) alter any condition or restriction related to the charitable interest. (d) If there are two or more second trusts, the second trusts shall be treated as one
  trust for purposes of determining whether the exercise of the decanting power diminishes
  the charitable interest or diminishes the interest of an identified charitable organization
  for purposes of subsection (c) of this section. (e) If a first trust contains a determinable charitable interest, the second trust or
  trusts that include a charitable interest pursuant to subsection (c) of this section
  shall be administered under the law of this State unless: (1) the Attorney General, after receiving notice under section 1407 of this title, fails to object in a signed record delivered to the authorized fiduciary within
  the notice period; (2) the Attorney General consents in a signed record to the second trust or trusts being
  administered under the law of another jurisdiction; or (3) the court approves the exercise of the decanting power. (f) This chapter shall not limit the powers and duties of the Attorney General under the
  law of this State other than as provided in this chapter. (Added 2023, No. 177 (Adj. Sess.), § 1, eff. July 1, 2024.)