Can an Irrevocable Trust be Changed in Any Way? Here’s What You Need to Know

When it comes to irrevocable trusts, you might be wondering: can they really be changed in any way? The answer is yes—and no. On the one hand, an irrevocable trust can’t be modified or revoked by its creator. 

On the other, there are ways to make changes to an irrevocable trust if absolutely necessary. To get the full picture, it’s important to understand the ins and outs of irrevocable trusts and how they can be altered. 

In this blog, we’ll explain—in plain English—why an irrevocable trust cannot be modified or revoked by its creator, as well as explore some of the ways that changes can still be made to an irrevocable trust.

Understanding Trust Law

When it comes to making changes to an irrevocable trust, it’s important to understand the basics of trust law. Trusts are legal arrangements that allow people or organizations (known as trustees) to manage and protect assets for another person or persons (known as beneficiaries). 

The creator of a trust (also known as the settlor or grantor) transfers legal title to his or her assets to the trustee, who holds them in the trust for the benefit of the beneficiaries. 

Trusts come in two main types: revocable and irrevocable. With a revocable trust (sometimes called a living trust), the creator has the power to modify or revoke the trust at any time. An irrevocable trust, on the other hand, cannot be modified or revoked by its creator.

The Reasons an Irrevocable Trust Cannot Be Changed

When a settlor creates an irrevocable trust, they relinquish their rights and control over the assets in it. That means that the terms of the trust cannot be changed by the grantor, nor can they take back or modify the assets in any way. 

The main reason why an irrevocable trust cannot be modified or revoked is to ensure that the trust and its assets are protected from creditors, lawsuits, and other outside influences. By making a trust irrevocable, the settlor is giving up their right to make changes and protecting the trust assets from any claims against them. 

The Ways an Irrevocable Trust Can Be Changed

Although an irrevocable trust can’t be modified or revoked by its creator, there are still ways that changes can be made to it. 

The first way is through a trust amendment. A trust amendment is a document that modifies the terms of an existing trust. It’s important to note, however, that a trust amendment can only be used to make minor changes—such as changing the names of beneficiaries or trustees—not major ones, like removing assets from the trust.

In some cases, a trust may be modified with the help of a court. This is known as trust modification or decanting. For example, if an irrevocable trust holds real estate that has significantly increased in value since its creation, the court can modify the terms of the trust to allow for the sale or transfer of that property.

It’s also possible to terminate an irrevocable trust if all the beneficiaries agree. This is known as a trust termination agreement, and it must be approved by a court before it can take effect.

Hiring an Experienced Attorney to Assist You

When tasked with trying to change an irrevocable trust, it’s important to seek the help of an experienced attorney who can provide you with legal advice. An attorney will be able to explain all of your options and advise you on the best course of action for your individual situation.

Moreover, an attorney can help you draft any necessary documents, such as trust amendments or trust termination agreements. This will ensure that all of the required paperwork is done correctly and that the changes to your irrevocable trust are legally binding. 

Reasons to Change an Irrevocable Trust

There are a number of different reasons why someone might want to change an irrevocable trust, including:

Add or Remove Assets: If the settlor wants to add or remove assets from the trust, they can do so with a trust amendment.

Update Beneficiaries: If the settlor wishes to update the beneficiaries of their trust, they can file a trust amendment. 

Change Trustees: If the settlor is unhappy with their current trustee and would like to appoint a new one, they can do so with a trust amendment.

Terminate the Trust: If all of the beneficiaries agree, they can file a trust termination agreement to terminate the irrevocable trust.

FAQs

Can an irrevocable trust be changed after it’s been created?

In some cases, yes. An irrevocable trust can be changed through a trust amendment, court-ordered modification, or trust termination agreement. However, it’s important to note that the settlor of an irrevocable trust cannot make changes to it. 

Is it possible to revoke an irrevocable trust?

No, an irrevocable trust cannot be revoked by its creator. However, all of the beneficiaries may agree to terminate the trust through a trust termination agreement, which must be approved by a court. 

Do I need to hire an attorney if I want to change my irrevocable trust?

Yes, it’s strongly advised that you hire an experienced attorney to assist you with making changes to your irrevocable trust. An attorney can explain all of your options and provide legal advice on the best course of action for your individual situation. They can also help draft any necessary documents, such as trust amendments or trust termination agreements.

Contact The Law Offices of Mary King for All Your Trust Needs

At The Law Offices of Mary King, we understand the complexities of trust law and can provide you with expert advice and assistance. Whether you’re looking to amend, modify, or terminate an irrevocable trust, our experienced attorneys can help.

We have years of experience helping people with trust-related matters, and we’re committed to providing the highest quality of legal services. For more information, contact us today, and one of our experienced attorneys will be glad to assist you. 

To get started, call 941-906-7585 or fill out our online contact form. We look forward to helping you with all of your trust needs!

The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.