Instead, the trust protector must be an independent person named either by the trustee, the beneficiaries, or the court. It is crucial noting that the person named as a trust protector cannot be someone who would serve neither as a trustee nor as a beneficiary.
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Similarly, it is possible to structure a trust agreement to designate a person as a “trust protector.” Hence, the person appointed as the trust protector has the power to decide whether a proposed modification may be accepted. In such cases, the trust agreement has specific language that permits modifications or amendments in the event of changes in tax law.Īlso, it is possible to work with an estate planning attorney to build a trust agreement granting the trustee or a beneficiary the “power of appointment.” Therefore, that person is granted lifetime authority to modify the trust, as long as the change benefits the future and current beneficiaries in the arrangement. Many people set up irrevocable trusts to reduce tax liability, such as charitable trusts. Ideally, an irrevocable trust agreement should have built-in instructions outlining how a trustee or a beneficiary to the trust can modify the arrangement. Structuring The Ideal Irrevocable Trust Agreement – What Terms Should I Include In The Document? How A Trustee Or Beneficiary Can Modify The Trust Hence, the key is creating a trust document with provisions that allow different types of modifications.
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Ultimately, modifying an irrevocable trust depends on how the trust agreement was structured, especially which events could trigger a trust modification. How Do You Modify An Irrevocable Trust In Florida? – An Honest ViewpointĪlthough it is not possible to predict the future, it is possible to draft an irrevocable trust agreement with specific instructions in the event you need to modify, amend, or revoke the trust sometime in the future.Ĭonsidering the strict nature of irrevocable trusts, no one should even consider setting up this type of legal arrangement before sitting down to discuss the case with an expert estate planning attorney. In both cases, the person creating the trust (settlor or grantor) must draft a document (trust agreement) with specific instructions governing the trust administration.Īdditionally, the trust agreement must include provisions regarding the possibility to change, amend, or revoke the trust – and this is the most complex aspect of irrevocable trusts.Īs a consequence, are there circumstances that permit a settlor to modify an irrevocable trust in Florida? Keep reading to find out. In essence, revocable and irrevocable trusts share several similarities.