Irrevocable trusts may no longer be truly irrevocable, according to Forbes in "Old Money, New Bottle: Decant If You Don't Like the Terms Of An Old Trust."
There can be a big drawback to irrevocable trusts because they are irrevocable. Once the trust is properly executed, it is supposed to be set in stone.
As a result of this, many people have shied away. This is especially true of the young who can expect that things will change during their lifetime.
However, there are now 25 states that allow old trusts to be decanted.
This process entails taking all of the assets from an old trust and putting them in an entirely new trust with different terms. It is technically the trustee who is allowed to do this. It is supposed to be for the benefit of the trust beneficiaries.
Interestingly, the trustee does not need to have permission from a court and often does not even need to inform the beneficiaries. The different states that allow decanting have different rules about what trust terms can be changed in the new trust. You will, therefore, want to seek out experts to make sure you decant in a state that allows you to do so.
An estate planning attorney can guide you in creating an estate plan that fits your unique circumstances. They can also explain your options with any plans or trusts you may now have.
For more information on Decanting please visit my website.
Reference: Forbes (March 16, 2017) "Old Money, New Bottle: Decant If You Don't Like the Terms Of An Old Trust."