Are there Ways to Modify an Irrevocable Trust
Trusts can be complicated things to set up, which is why they are almost always left to Miami estate attorneys to hammer out the details. Many people who either set up a trust or are beneficiaries of a trust would like to know what the chances are of having a trust changed in the future for whatever reason, such as the trust no longer being useful or the needs of the beneficiaries changing. There may be ways to change a trust under some circumstances.
The easiest way to have a trust that can be modified in the future is, of course, making the trust a revocable one, as opposed to an irrevocable one. A revocable trust can be amended at any time. However, with that flexibility comes a number of problems when it comes to taxes and protection from creditors. That is usually why it is not the most popular option.
In Florida, however, having a trust be irrevocable does not really mean that the parties are stuck with it and all its terms forever. Depending on the situation, there are ways that a revocable trust can be changed under Florida law.
One way is with the courts. With court intervention, an irrevocable trust can be changed for two reasons. One is modification that is consistent with why the creator of the trust made the trust in the first place. There are three main reasons why the court would change it in a situation such as this. One is that it is impossible or illegal to fulfill the trust. Another is that something arose that the creator of the trust did not anticipate when he or she made it. Finally, the trust can be changed if the reason the trust was made does not exist.
Another reason the courts are allowed to change an irrevocable trust is when it is in the best interest of the beneficiaries to do so, as long as the trust document does not specifically forbid modifying the trust in such a way. In such a case, the court would still look into the intent behind making the trust.
Finally, there is also a way to change an irrevocable trust without court intervention at all, though there are some limitations on this. If the creator of the trust is deceased, there is unanimous consent of all of the beneficiaries, next level beneficiaries and the trustee, if the trust was created after December 31, 2000 and a few other requirements, the trust may be able to be changed to meet the evolving needs of the beneficiaries without bringing the matter before a judge.
In any case that involved modifying or terminating a trust, the beneficiaries should not attempt to do it alone and should hire a skilled Miami estate attorney for assistance. It is important to be sure that everything is done correctly and that the beneficiaries, creator of the trust and the trustee fully understand what their options are and what it is that will happen when the trust is changed. Call the Law Offices of Albert Gurevich at (786) 522-1411.