Can You Modify An Irrevocable Trust?
There are many different types of trusts in Florida and they can all protect your property and ensure it is distributed according to your wishes after you pass away. One type of trust is irrevocable trusts and as the name suggests, these documents cannot be changed or revoked after it has been drafted and the trust has been funded. Still, there are some exceptions that allow changes to be made after an irrevocable trust has been established. Below, our Daytona Beach wills and trusts lawyer explains more.
Important Trust Terms to Know
There are important terms to know regarding trusts before understanding when you can make changes to an irrevocable trust. These are as follows:
- Grantor: The grantor is the person who establishes the trust and funds it with assets.
- Trustee: The trustee manages the trust and the property within it. Typically, grantors act as the trustee during their lifetime and appoint a successor trustee who will manage it upon their death.
- Beneficiaries: The beneficiaries are the individuals who will benefit from the trust and receive the property within it upon the grantor’s death.
When to Modify an Irrevocable Trust
Under state law, irrevocable trusts can be modified if the change is a reflection of the grantor’s intentions. There are generally four scenarios when it is possible to modify an irrevocable trust. These include:
- The purpose of the trust has become impossible, impractical, or illegal
- The purpose of the trust has been fulfilled
- Circumstances have arisen that could not be anticipated and they conflict with the administration of the trust
- An important and original purpose of the trust no longer exists
Of the above reasons, unforeseen circumstances are the most common reason to modify an irrevocable trust. For example, a modification is necessary if a beneficiary of the trust passes away. This would conflict with the administration of the trust and so, changes would be necessary.
Agreeing to a Modification
Another way to modify an irrevocable trust is by using common law. Under common law, an irrevocable trust can be modified if all parties agree to the changes. Staying with the above example, if one of the beneficiaries passed away, the grantor and beneficiaries could agree to change the trust to distribute all property to the surviving beneficiaries. If all parties agree to the changes, the court is not required to establish the practicality of the trust. However, the court will still have to approve the changes that have been agreed upon in order to formalize the modification.
Our Wills and Trusts Lawyer in Daytona Beach Can Help with Your Changes
While it is sometimes possible to modify an irrevocable trust, it is never easy. At Bundza & Rodriguez, our Daytona Beach wills and trusts lawyer can help. Our Experienced attorney can review the facts of your case, determine if it is possible to change your trust, and help you through the process so the trust still reflects your intentions. Call us today at 386-252-5170 or chat with us online to schedule a consultation with our experienced attorney and to get the legal help you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
