Estate planning is a crucial aspect of securing assets and ensuring smooth transfer to your chosen beneficiaries. Trusts, in particular, are powerful tools that provide explicit instructions for managing and distributing wealth. However, when trust dispute issues arise, can you change beneficiaries in an irrevocable trust? It can be difficult to understand your rights as a beneficiary.
Trusts can be revocable or irrevocable. Trusts are typically revocable while the grantor is alive, giving them easy access to make changes as needed. However, revocable trusts become irrevocable after the grantor’s passing, making them difficult to alter or revoke.
Read more to learn about situations in which a beneficiary may be added or removed from an irrevocable trust.
Can You Change Beneficiaries in an Irrevocable Trust? Rules for Georgia.
In certain situations, beneficiaries may find themselves needing to modify an irrevocable trust due to unforeseen circumstances. “There are a few caveats in which an irrevocable trust can be changed,” says founding attorney Adam Gaslowitz of Gaslowitz Frankel LLC. “When clients come to us with a dispute, we win their case by finding and proving those caveats.”
Changes may include adding or removing beneficiaries from the trust. Georgia, like some other states, permits beneficiaries to seek modifications to an irrevocable trust under specific conditions. In order for the court to approve the modification request, proof of the following must be provided to the court:
Proper Notice
The trustee must have been given appropriate notice about the intended modification. This ensures transparency and allows the trustee to participate in the process. Additionally, all interested parties, including beneficiaries and creditors, must be made aware of the proposed change.
Agreement of All Beneficiaries
All beneficiaries of the irrevocable trust must consent to the proposed modification. The court will assess whether the proposed modification aligns with the “material purpose” of the trust. If the modification jeopardizes the fundamental intent of the trust and alters or conflicts with that “material purpose” as expressed in the trust’s written provisions, the court may decline the request.
Additional Caveats
If all the beneficiaries cannot agree to the modification, or if there are disputes, there are additional caveats that your lawyer may assert to convince the court that a modification is necessary. Common reasons for modifying a trust include:
- Streamlining administrative issues
- Changing the investments that the trust as originally written requires
- Changing the manner or timing of distributions from the trust
- Amending the trust to enable the beneficiaries to remove a trustee
- Addressing new information (such as a previously unknown heir)
- Addressing breaches of fiduciary duty by a trustee
Gaslowitz Frankel LLC: Your Trusted Fiduciary Litigators in Georgia
Modifying an irrevocable trust can be a complex legal process that requires experienced counsel. Gaslowitz Frankel LLC is a renowned fiduciary litigation firm for Georgia, known for exceptional expertise in trust disputes.
With a proven track record of successfully resolving trust disputes, Gaslowitz Frankel LLC has established itself as the premier choice for modifying irrevocable trusts in Georgia. Their team of legal professionals possesses over 30 years of experience in fiduciary disputes, representing beneficiaries in complex cases involving wills, estates, and trusts.
If you find yourself in need of modifying an irrevocable trust or require guidance on any fiduciary matters, Gaslowitz Frankel LLC offers a free consultation. Let us put our expertise to work for your case.
