This review may lead some to question how “irrevocable” is an irrevocable trust, as well as when or how these trusts may be modified or terminated. This article describes how to modify or terminate these trusts, analyzes some key issues and potential pitfalls, and highlights some best practices.
февраля 04, 2023 at 10:04 AM
By Lisa S. Presser and Brian M. Balduzzi | февраля 04, 2023 at 10:04 AM
Times change, people change; do trusts change? With an aging population and one of the largest anticipated wealth transfers in recent history, families and advisers should review existing trusts to determine their utility and alignment with current client goals and tax laws. This review may lead some to question how “irrevocable” is an irrevocable trust, as well as when or how these trusts may be modified or terminated. This article describes how to modify or terminate these trusts, analyzes some key issues and potential pitfalls, and highlights some best practices.
The available options for trust modification or termination may depend upon: the applicable governing law; the type of trust (i.e., revocable, irrevocable, charitable, noncharitable); who consents among the settlor, trustees, and beneficiaries; and the proposed changes and rationale. Identifying solutions that limit court involvement may be most efficient for all parties involved, but modifications or terminations that could be contested in the future may benefit from judicial review and approval. For this Article, we assume Pennsylvania law applies. If more favorable law is desired, the parties may consider changing trust situs.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
