When you are establishing a trust fund in Missouri, you may be surprised to learn how many different types of trusts there are, each complete with its own benefits and drawbacks. As such, it is imperative to enlist the assistance of St. Louis wills & trusts lawyers to help you navigate these complicated matters and explore your options. One question many have after establishing an irrevocable trust is whether or not they can alter the terms and conditions. The following blog explores what you should know about this matter and why it’s in your best interest to connect with our team to learn how we can help you.
What Is an Irrevocable Trust, and What Are the Benefits?
An irrevocable trust is a form of trust fund that offers considerable protection for the creator and the assets held in the trust. One of the primary benefits of an irrevocable trust fund is that, unlike revocable trusts, this can offer considerable protection against creditors. In the event you are sued, whether in a personal injury matter or over a debt, the assets held in this trust would be unable to be seized. This is because, when you create an irrevocable trust, you technically move the assets out of your estate and into the ownership of the trust. As such, the creditor or court would be unable to take these assets because they are no longer yours.
In the same vein, you should note that many people create irrevocable trusts because they allow them to bypass probate upon their passing, thus making the process easier for their beneficiaries. Probate involves the validation of a will by the probate court, which then oversees the distribution of assets. This process can be complicated, which is why many choose to create this document, as it will not be subject to probate.
Am I Able to Modify the Terms and Conditions After It’s Created?
As the name suggests, you will be unable to modify the terms included in your irrevocable trust once it’s been created. However, there are very specific circumstances under which a change can occur.
Typically, if a grantor and all beneficiaries are in agreement with the proposed changes, it can be modified under Missouri law. However, this is unfortunately rare, especially if it leads to a beneficiary having a less favorable outcome than the initial terms set forth.
Another potential option is to decant your trust. This essentially means you create a new trust fund with new terms and move the assets held in the original trust to the new one. This allows you to change the terms. Under certain circumstances, Missouri courts allow this action.
In the event you are interested in modifying the terms and conditions of your irrevocable trust, it’s in your best interest to connect with an experienced attorney with the Stobie Family Law Group. Our firm understands how difficult these matters can be to navigate, which is why we will do everything in our power to help you navigate these stressful times. When you need help, connect with us today to learn more.
