Irrevocable Trust Modification And Decanting
Unlike many other states, Nevada allows trustees and beneficiaries to modify irrevocable trusts. With some limits under the law, as long as the trustor, trustee, and beneficiaries agree to the modifications, the process can be relatively straightforward. With the proper legal guidance, it may be possible to meet your new estate planning goals even if a trust is irrevocable.
At Solomon Dwiggins Freer & Steadman, LTD, our attorneys have extensive experience handling all types of trust and estate matters. In fact, many of cases we take involving trust modifications come to us from other firms looking for guidance in this niche area of the law. We are prepared to put our skill and knowledge to work for you and your clients to help effectively resolve your complex irrevocable trust matters.
When Would You Want To Modify Or Decant A Trust?
In the legal realm, one way to modify a trust is through a process often referred to as “decanting.” This term is used because you are effectively “pouring” the assets from one trust into a new trust. In other words, you will be taking an existing trust and transferring it to a new trust with new provisions.
Even if the Trust is governed by another jurisdiction, Nevada’s laws allow for broad jurisdiction over trusts that were formed in other states. Nevada’s laws are broad enough to allow most out-of-state trusts to be subject to Nevada’s jurisdiction, and thus allowing such trusts to be decanted under Nevada’s laws.
There are at least two additional ways to modify Irrevocable Trust: Non-Judicial Settlements and Judicial Reformations. Non-Judicial Settlements give the trustor, trustee, and beneficiaries the power to modify an existing trust by unanimous agreement without court involvement. Judicial Reformations are used when it is necessary or advisable to obtain a court order reforming the trust.
There are a number of different reasons for why you would want to modify a trust, including:
- Asset Protection
- Fixing drafting errors, such clarifying the beneficiaries
- Changing Trustee provisions
- Failing to account for certain tax issues
- Updating the trust to keep pace with changes in tax law
- Changes in family circumstances
Protecting Assets Through Trust Modification
Asset protection is one of the most typical reasons people seek a trust modification. By pouring the assets of one trust into another, you can strengthen asset protection provisions and help protect your beneficiaries’ assets from outside parties, such as creditors or an ex-spouse. This can be particularly helpful in cases of bankruptcy or when you are going through a contentious divorce proceeding.
We Understand How The Decanting Process Works
Trust decanting does not typically involve litigation or even the courts. However, because this is such a niche area of legal practice, it is essential to have an experienced lawyer guide you through this process to ensure that it is carried out correctly.
Contact Our Las Vegas Attorneys For All Of Your Estate Planning Needs
We can help resolve problematic issues with trusts through decanting, non-judicial settlements and judicial reformations. To find out more about how we can help you, call 702-997-7714, or contact us online to schedule a convenient consultation.