Contesting an irrevocable trust may sound impossible at first – but if you have a legitimate legal argument, it may be more within reach than you think.
Here at Gaslowitz Frankel, we want our readers to know their rights. If you are considering contesting an irrevocable trust, this article is for you.
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What Is an Irrevocable Trust?
When it comes to establishing a trust, you generally have two options: revocable and irrevocable. While revocable trusts can be changed during the lifetime of the grantor, irrevocable trusts usually require the grantor to give up the right to amend or terminate the trust after its creation.
Typically established for estate and tax considerations, irrevocable trusts hold assets separate from the grantor’s taxable estate, meaning the assets legally belong to the trustee who is required to administer the assets as provided in the trust itself. Irrevocable trust assets can include things like business ownership rights, investments, cash, and even life insurance policies.
Benefits of an Irrevocable Trust
While you certainly give up a degree of control by establishing an irrevocable trust, they offer a variety of benefits that often outweigh the lack of flexibility. Here are some reasons why an irrevocable trust may be a good choice:
Minimizing Estate Taxes
By placing assets in an irrevocable trust, grantors can minimize estate taxes, ensuring a more efficient transfer of wealth to beneficiaries.
This is because as soon as an asset is added to an irrevocable trust, it is no longer owned by the person who established the trust. That means nothing in the trust can be taxed as part of the grantor’s estate.
Asset Protection
Another major benefit of irrevocable trusts is asset protection. They can effectively shield assets from personal debts and potential creditors, making sure that the wealth is preserved for the beneficiaries instead.
That means that if done correctly, assets placed into an irrevocable trust cannot be seized as a way to pay off the grantor’s debts either before or after their death.
Can I Contest an Irrevocable Trust?
Now, to address why you are likely here – is it possible to contest an irrevocable trust? YesBut under Georgia Law, certain criteria need to be met in order to do so. We’ve provided a few examples below:
Exclusion of Individuals
If you believe you were wrongfully excluded as a beneficiary of a trust, you may have grounds to contest your exclusion if you can show that the grantor excluded you by error rather than intent.
Foul Play
The most compelling argument for contesting a trust is when you suspect foul play. Whether that means the grantor was taken advantage of or was not competent to create a trust. If you believe a trust grantor did not intend to create a trust, or was unduly influenced to include certain trust terms or beneficiaries, you should definitely consult a trust litigation attorney.
Related Article: A Crash Course on Fiduciary Duties
Contest An Irrevocable Trust With Gaslowitz Frankel
Here at Gaslowitz Frankel, our goal is always to advocate for the best outcome for our clients. The key to a successful outcome regardless of the path you choose to take is connecting with an experienced attorney at the very beginning.
If you are seeking help finding a resolution for a will and trust dispute, we’re here to help. Contact us by filling out our contact form for a free consultation about your case.
Fill out our contact form for a free consultation.
