Sablone on Modifying Irrevocable Trusts Using the UTC and Decanting Statutes

Traditionally, irrevocable trusts could not be modified or terminated without court involvement. In this Analysis, Kathleen Sablone reviews how the Uniform Trust Code and decanting statutes offer some options for building flexibility into existing irrevocable trusts. She writes: The Uniform Trust Code...

When Irrevocable Trust Beneficiaries Fall Out of Favor

Sometimes estate plans need to be modified because relationships change. A testator's desires may change and affect the designation of beneficiaries in an irrevocable trust. Where trusts have "bad" beneficiaries or undesirable terms, one option to fix the problem is to modify the trust...

Insurance in an Irrevocable Trust for a Spouse in a Community Property State

Life Insurance is subject to estate tax if the insured owns it. One way to avoid estate taxes is for an irrevocable trust for the benefit of the children of the insured to be the applicant, owner and beneficiary of the insurance policy. But, under this solution, the spouse of the insured gets no...

Revocable Living Trusts: Are they now obsolete?

Currently the Revocable Living Trust is the most popular type of trust for estate planning. With the current estate tax exemption at 5 Million dollars, many have begun to ask if there is a need for such a trust. More over the Revocable Living Trust provides no asset protection. Currently 99.7%...

Morrison & Foerster LLP: Distribution of Liabilities from a Grantor Trust Likely Causes the Grantor to Recognize Gain

By Danielle T. Zaragoza, Esq. and Sonja K. Johnson, Esq. A so-called "grantor trust" is a trust that is disregarded for income tax purposes. Because the income and gratuitous transfer tax laws are not completely consistent with each other, it is possible for an irrevocable trust to be a grantor...

Increased Utility under New York’s Decanting Statute

By: David R. Schoenhaar, Esq. * Governor Cuomo signed a bill effective August 17, 2011 that significantly expands the utility of New York's decanting statute. Decanting, which was originally codified under EPTL 10-6.6 in 1992, authorizes the trustee of an irrevocable trust to appoint trust property...

North Carolina Estate Planning Blog – December 21, 2011: IRS Requests Comments on Trust Decanting

By Greg Herman-Giddens The IRS is requesting comments on the tax implications of trust "decanting," which refers to transfers by a trustee of all or a portion of the principal of an irrevocable trust to another irrevocable trust. Specifically, would like to hear from practitioners regarding...

Decanting New York Trusts: EPTL 10-6.6 Significantly Revised

New York's decanting statute, EPTL 10-6.6 , was significantly amended by the 2011 Legislative Session. As a result, the trustee of a New York irrevocable trust has a much greater opportunity to decant assets from an existing trust to another trust. In this Analysis, Linda Hirschson, chair of Greenberg...

Williams Mullen: Gift and Creditor Protection Planning with Virginia’s New Self-Settled Spendthrift Trust Statute

BY: FARHAD AGHDAMI & JEFFREY D. CHADWICK On April 4, 2012, Governor McDonnell signed Senate Bill 11 into law, which permits the creation of "self-settled spendthrift trusts" in Virginia. A self-settled spendthrift trust is an irrevocable trust in which the grantor retains a beneficial...

Troutman Sanders LLP: Virginia Trust Law to Help Protect Assets from Creditors While Still Enjoying the Assets Takes Effect on July 1, 2012

By David N. Anthony , Melissa Roberts Tannery and Tania S. Sebastian Beginning July 1, 2012, Virginia will allow its residents to create qualified self-settled spendthrift trusts and achieve some protection from creditors. Va. Code Ann. §§ 55-545.03:02 and 55-545.03:03 . Under current Virginia...

Troutman Sanders LLP: New Virginia Law Authorizes Trust Decanting, Allowing A Trustee To Change Some Provisions of An Irrevocable Trust

By Carol F. Burger , Molly F. James , Melissa Roberts Tannery and Tania S. Sebastian Effective July 1, 2012, Virginia has a new law which permits the trustee to change some provisions of an irrevocable trust by appointing or decanting income and/or principal of a trust to another trust, under certain...

Amendment of Trust by Grantor’s Attorney-in-Fact

An irrevocable and unamendable trust can be revoked or amended during the life of the grantor under certain limited circumstances. New York's Estate Powers and Trust Law (EPTL) provides in Section 7-1.9 that upon the written acknowledged consents of all persons beneficially interested in a trust...