You may have spent countless hours reflecting on and strategizing with the terms and conditions of your irrevocable trust document. Even so, though, you may regret certain things you decided upon. This may be due to an unforeseen change in circumstances beyond your reasonable control, or simply a change of heart, so to speak. Either way, you may want to go back and tweak this document. Well, for this, please read on to discover whether an irrevocable trust can be changed and how one of the seasoned Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC, can help you and your beneficiaries get what you want.

How can an irrevocable trust be changed?

Much like the name suggests, an irrevocable trust document cannot be revoked after its official execution. This is because it is intended to be a long-term arrangement. And when you sign off on it, you essentially give up your right to overrule its terms. From here, your trustee holds the legal title to the trust, and they are ethically obligated to comply with these established terms.

So while you cannot revoke your irrevocable trust, you may be able to change it, though it may pose great difficulty. First of all, you need to explicit consent of your named beneficiaries and assigned trustee, which may be challenging in and of itself. But if everyone gets on board, you may compose a non-judicial settlement agreement that sets out your modified trust provisions.

However, unanimous consent alone may not be effective. Rather, the Pennsylvania probate court may use its discretion to decide whether to approve or deny this agreement. That said, they may not and cannot endorse this agreement if it completely contradicts the fundamental and material purpose of the trust.

Why might the court accept a modification?

If not for a non-judicial settlement agreement, the Pennsylvania probate court may take it upon itself to step in and modify the terms of your irrevocable trust. It may deem this as a necessary action if they believe a modification would enhance its purpose, or otherwise, that its existing terms hinder its effectiveness. More specific examples of this are as follows:

  • The court may believe that new tax regulations must be considered in the trust’s terms.
  • The court may believe that new legal language and social standards must be used in the trust’s terms.
  • The court may believe that changes in family dynamics (i.e., deaths, divorces) must be noted in the trust’s terms.
  • The court may believe that the ordered and necessary replacement of a trustee must be reflected in the trust’s terms.

The first step toward preparing yourself for this legal action is to retain the services of a skilled Louisville, Kentucky consumer bankruptcy lawyer. Look no further than Schwartz Bankruptcy Law Center.