Modification and Termination of Trusts: A Double-Edged Sword
Evolving facts, circumstances and applicable laws over the course of trust administration may render inappropriate a trust that, when it was created, seemed to be a perfect fit. In many states, the question is not whether the trust instrument can be modified or the trust terminated but, rather, which modification or termination option, if any, is the most appropriate for the situation at hand.
Changing or ending an irrevocable trust gives rise to a host of complex issues, including:
- Modification and termination options available under relevant law
- Using trust modifications and terminations to settle disputes
- Resisting a trust modification or termination
- Governing instrument limitations on modification or termination