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...
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 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...
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
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...
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...
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...
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...
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...
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...
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...
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...