Description
Dynasty trusts are a cornerstone of modern estate planning, offering multigenerational asset protection, tax benefits, and strategic flexibility. But what happens when these “irrevocable” instruments no longer meet a family’s needs, respond poorly to new tax regimes, or fall out of sync with fiduciary best practices?
Existing irrevocable trusts often lack the needed flexibility to achieve certain goals. Estate planners need to be able to advise clients on the benefits of using decantings, Nonjudicial Settlement Agreements (NJSAs) and other techniques to modify trusts and adjust to changing circumstances, the mechanics of using such techniques, fiduciary concerns and tax concerns.
Whether your client is dealing with outdated administrative terms, unintended tax outcomes, or family changes that weren’t contemplated when the trust was drafted, this program offers practical guidance to modernize trust instruments without court intervention and will review tradeoffs between risks and client impact.
Led by two of the country’s top estate planning lawyers, this program examines:
I. Why Modernize?
- Family transitions: marriage, divorce, addiction, adult adoptions
- Changing needs of beneficiaries and fiduciaries
- Shifting tax environments and the death of the credit shelter trust
- changes and fixing drafting errors
II. Tools for Modification
- NJSAs and Uniform Trust Code provisions
- Decanting across jurisdictions: state statutes and fiduciary obligations
- Powers of appointment
- Mergers and divisions: when, why, and how
- Judicial modifications and reformations: risks and requirements
III. Key Tax Considerations
- Grantor vs. non-grantor status
- Gift and estate tax traps and safe harbors
- GST tax issues: preserving grandfathered status
- Avoiding unintended gain recognition
IV. Fiduciary Risk Management
- Statute of limitations, notification protocols, and virtual representation
- Use of release and indemnity agreements
- Seeking court instruction or judicial accounting
This program is ideal for estate planning attorneys, trust counsel, fiduciaries, and tax practitioners who advise clients on long-term trusts, wealth transfer strategies, and trust modification techniques under Delaware and other state laws.