How Some Irrevocable Trusts Can Be Changed

How Some Irrevocable Trusts Can Be Changed

Since the terms of irrevocable trusts are designed to be permanent, these arrangements can be difficult to break. However, there may be instances when such a trust is no longer beneficial for a Louisiana estate owner or their heirs.

Some states have been adopting new laws that allow people to change an irrevocable trust. To be more specific, 25 states now allow broken trusts to be amended through what’s known as decanting statutes. These allow the creator to take assets out of an old trust and pour them into a new and revised trust. This could correct provisions that might have been unfavorable. That being said, decanting statutes can differ from state to state, and some states can be more restrictive than others (Louisiana currently does not have any decanting statutes). Therefore, it is recommended that a creator move the trust situs to a state that offers flexible decanting statutes.

Legal Peace Of Mind Is Just A Click Away

Call For A Consultation 225-763-2272

However, people might have other reasons to decant a trust. For instance, some may wish to extend the terms of a trust, especially if it contains large assets that the creator would like to last for several generations. On the other hand, other trust creators could wish to change the trust’s distributions and make them discretionary instead of mandatory. Someone might even just find it more efficient to combine trusts together.

Regardless of the reason, decanting a trust can be a useful tool. Since it’s a relatively new process, people are still exploring what can be done with it. If an estate planner would like to learn more about decanting, they may stand to gain from reaching out to an estate planning attorney who can help them identify opportunities made possible by these new statutes.

Recent Posts

Categories

Archives

Over 40 years of Experience

Accessible. Accommodating. Your Partners In The Legal Realm

We are not just your attorneys, but your partners in the legal realm. As in any partnership, we believe communication is key. We ask the right questions to learn about your situation and goals. Then we work with you to design a resolution strategy that makes the most sense for you or your business.

As your case progresses, you will find that we are easily accessible by phone, text or email. We strive to be accommodating in setting appointments around our clients’ busy schedules, even if that means early mornings or late evenings. We pride ourselves on creating a welcoming, helpful environment.

Call For A Consultation 225-763-2272

The Partnership

Begins With A Consultation

Andrew B. Ezell & Andrew K. Nicolas
Andrew B. Ezell & Andrew K. Nicolas

contact us today

Fields marked with an * are required

"*" indicates required fields

I Have Read The Disclaimer*
This field is for validation purposes and should be left unchanged.