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.