Trust Modifications in North Carolina, Florida, Tennessee and New York
It’s often thought that irrevocable trusts offer no means of change. While the name suggests these trusts cannot be modified, this is not the reality. In most states, irrevocable trusts can be modified in a number of ways under certain circumstances. Eligible trusts may be amended through court proceedings, decanting, and/or the use of trust protectors. If all parties to the trust consent, it is sometimes possible to modify or terminate a trust entirely without court action.
Besides modification in compliance with state law, decanting is often used when trust terms are undesirable. This process allows for trust assets to be distributed into a new trust with more favorable terms. Decanting statutes differ state-by-state. Also, the grantor may be a resident of one state but place the trust in another jurisdiction that offers more favorable legislation. States that have adopted a version of the Uniform Trust Code, such as North Carolina, Florida and Tennessee, often have laws that provide for trust modification. In some cases, moving the trust to a different jurisdiction is necessary to achieve planning goals.
Our trust attorneys offer trust modification services for irrevocable trusts. We can assist with modification efforts for trusts in North Carolina, Florida, Tennessee and New York. Outdated trust language, changes affecting beneficiaries, or new laws could make existing trust terms unfavorable. Let us help make an old trust work best for all involved.
Schedule a time with a trust attorney to discuss questions about trust modification.