Trusts are powerful estate planning tools, as they provide specific management instructions for assets and wealth. Trusts can be revocable or irrevocable, the main difference being that revocable trusts are more easily altered while the grantor is alive. To modify an irrevocable trust, court permission is usually required.
What is the Difference Between a Revocable and Irrevocable Trust?
Revocable trusts, also known as living trusts, can be altered or revoked while the grantor is alive. Living trusts are often created so that the grantor can control her assets while she is alive and ensure that they are administered as directed in the trust after the grantor’s death.
Grantors often create trusts in lieu of a will because, in the event of the grantor’s death, assets in a trust do not have to go through probate court before being passed to beneficiaries. Revocable trusts become irrevocable upon the grantor’s death.
Irrevocable trusts can be used to remove assets out of a grantor’s taxable estate. They are commonly used to protect assets, insurance policies, and funds that the grantor intends to pass to their beneficiaries after their death.
The laws in some states, including Georgia, allow the beneficiaries of an irrevocable trust to modify the trust in certain circumstances.
How to Modify an Irrevocable Trust
It is not uncommon for families to find themselves beneficiaries of an irrevocable trust that no longer suits their needs due to changing laws or unforeseen circumstances. Some common changes that beneficiaries might petition for include dividing or consolidating trusts, giving the beneficiaries the ability to remove and replace a trustee, or changing assets or distribution requirements.
Under Georgia law, if all of the beneficiaries of an irrevocable trust agree on a modification, they can file a petition to modify the trust. If the grantor is deceased, the trustee has been given proper notice, and all of the beneficiaries agree, the court must approve the modification request unless it concludes that the proposed modification is inconsistent with a material purpose of the trust.
Premier Fiduciary Litigators for the State of Georgia
Gaslowitz Frankel LLC partners have a proven track record of winning trust disputes for clients. Those wanting to modify an irrevocable Georgian trust should rely on a firm with leading trust dispute expertise.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
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