Trusts can be revocable (or changeable) or irrevocable. Trusts that are revocable during a settlor’s lifetime usually become irrevocable at the settlor’s death. Trusts may also be irrevocable from the time they are created. Regardless of when or how a trust becomes irrevocable, people often ask, “Can an irrevocable trust be contested?”
What are Some Reasons to Contest an Irrevocable Trust?
There are many benefits to creating a trust that will become irrevocable upon the trustor’s death. Trustors retain the ability to control their finances even after their death, ensuring that their assets are used as the trustor intended. Such trusts can replace a Will because, upon the trustor’s death, assets in a trust do not have to go through probate court before being passed to beneficiaries.
Irrevocable trusts can also be used to move assets out of a grantor’s taxable estate and to hold insurance policies.
As beneficial as irrevocable trusts can be, they are also inflexible. Changes in the law or family circumstances often result in beneficiaries concluding that their irrevocable trust no longer meets their needs.
These scenarios may include:
- Disputes with a trustee
- Executive issues
- Disagreements between siblings
When these circumstances pop up, it can cause beneficiaries to seek ways to alter or remove an irrevocable trust.
Can an Irrevocable Trust be Contested?
Irrevocable trusts, if created with the help of a proven and professional estate planner, are typically designed to be difficult but not impossible to alter. Under Georgia law, the trust can be altered in specific circumstances. For example, if the settlor is deceased, all of the beneficiaries of the trust agree on a proposed modification, and the proposed modification is not inconsistent with any material purpose of the trust. Those seeking a modification under these circumstances must file a petition in court and give notice of the petition to the trustee.
If the petition meets the requirements above, the court must approve the modification request unless it concludes that the proposed modification is inconsistent with a material purpose of the trust.
Some common changes beneficiaries might petition for include:
- Dividing or consolidating trusts
- Removing or replacing a trustee
- Changing distribution requirements
Those wanting to modify an irrevocable trust should seek out representation with a proven track record of winning trust modification suits in court. The attorneys at Gaslowitz Frankel LLC are the premier trust and estate lawyers in the state of Georgia.
Case Study: Gaslowitz Frankel Partners Help Client Obtain a Petition to Modify an Irrevocable Trust
“We believe in being a counselor to our clients in every sense of the word,” says Adam Gaslowitz, founding attorney of Gaslowitz Frankel LLC. “We seek to not only offer legal counsel, but to offer mental support, emotional support, and the power of reconciliation.”
About Gaslowitz Frankel LLC
Gaslowitz Frankel LLC has the compassion and experience to guide beneficiaries toward understanding their unique situation and toward making the best decisions to that optimize their outcomes. Our team has the expertise to address concerns beneficiaries have during the litigation process, including the desire to honor the deceased, avoid or minimize the time in court, alleviate stress, and make the best decisions for themselves and their families.
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