Irrevocable Trusts, Not So Irrevocable After All

Friday, May 22, 2015

Irrevocable Trusts, Not So Irrevocable After All

Visit Original Article
By Gerry W. Beyer

Irrevocable trust are popular because they offer the greatest tax protection for the assets of the settlor but at the cost of losing all control. However, many states have created provisions to allow an irrevocable trust to be changed, even without judicial involvement, and usually requires all beneficiaries to agree to changes in addition to the grantor. However, the IRS has indicated through private letter rulings that these changes to the trust do not strip away the tax advantages. Keep this in mind if you ever have a client that created this type of trust and now feels changes are needed for the trust to survive.

John P. Dedon Changing What Is Irrevocable – Life Irrevocable Trusts and Estate Planning, National Law Review, May 20, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention.