An irrevocable trust in Palm City is structured to make it difficult, if not impossible, to alter. Naturally, this sometimes results in an inflexibility that may become frustrating. Trusts sometimes lose their effectiveness or no longer meet the needs of the beneficiaries. In the past, the trustee of an irrevocable trust typically would have been unable to adjust the terms of the trust. However, decanting an irrevocable trust may provide a solution to an outdated, ineffective irrevocable trust.
Decanting a trust simply means using assets from an old irrevocable trust to fund a new trust. Essentially, the assets pour into the second trust leaving the old, unwanted provisions behind in the empty first trust.
After decanting, the trustee has the power to use the principal from the first trust to fund a second trust. However, there are some restrictions. Under Florida law, the second trust:
The new trust begins to function according to the terms of the trust document that created it. While the beneficiaries remain the same, the trust may:
Trust law can be complicated. Always consult with counsel before creating or altering any trust.
Irrevocable trusts provide significant benefits to many people. When an irrevocable trust has run its course, however, it may be time to decant it. It’s important to note that not all states allow you to decant a trust. Fortunately, Florida does allow for this process.
Do you question the need for attorney guidance with so many online resources? Because laws and regulations are complex, and because every person has a lot at risk, more people than ever are seeking professional guidance from an experienced, knowledgeable source. That helps explain the rapid growth of our firm. Whether you happened upon this website by accident or are one of the many referrals we receive from a nearly 15-year collection of satisfied clients, our staff can provide customized estate planning guidance for you. Call us. Our number: 1 (772) 218-0480
Written by: John Mangan, JD, MBA