I want to modify or terminate my West Palm Beach trust what can I do?

Are you seeking to modify a trust in West Palm Beach?  Do you know your rights in West Palm Beach probate court? A beneficiary may be able to modify a trust but only under certain circumstances. Do you know what they are? Learn more.

In General

• A trust will terminate automatically upon the expiration of the term specified in the instrument or when all the purposes of the trust have been accomplished.
• It may also happen upon the purpose becoming unlawful, contrary to public policy or impossible to achieve.
• A West Palm Beach settlor can revoke or amend a trust unless it expressly states that it is irrevocable.

Modification and Termination By Trustee

• The West Palm Beach trustee in certain circumstances may terminate a trust.
• A trustee may choose to terminate the trust if the property is less than $50,000 and the amount is insufficient to justify the cost of administration.
• The trustee must provide the qualified beneficiaries with notice.
• This also applies to spendthrift trusts unless expressly prohibited.

Combining Trusts

• Absent contrary terms a trustee may combine several trusts into one trust or divide a trust into multiple provided doing so does not frustrate any purposes of the trust or impair the rights of any beneficiary.
• A trustee does need consent of beneficiaries to do this but he should provide them with notice.

Pour Over Trusts Assets into New Trust

• Unless the trust instrument expressly provides otherwise a trustee has absolute discretion to invade the trust principal and distribute it into a new trust.
• This is known as the trustee’s decanting power.
• This is allowable even if a trust is irrevocable or contains a spendthrift clause.
• Again the West Palm Beach trustee need not seek consent but must give the beneficiary(ies) notice.

Modification or Termination With Beneficiary Consent

• After the settlor’s death the trustee and qualified beneficiaries may be unanimous consent modify the terms of an irrevocable trust.
• This may be allowed even though there is a spendthrift clause or a provision that prohibits amendment.
• Keep in mind that any of these modifications you and your trustee make will automatically be binding on any unascertained heirs.