A trust is a legally binding contract that facilitates the distribution of your assets without lengthy probate processes. However, modifying or terminating a trust without a hard-working trusts attorney can be complex, depending on how the trust is written and structured.
At Begum Peláez-Prada PLLC, we are well-versed in the intricacies of trust modification and termination in San Antonio and are ready to assist you.
To understand if you can modify your trust, you must first determine whether you have a revocable or an irrevocable trust. These two types serve different purposes and have distinct rules for modification.
If you have a revocable trust, as the grantor, you can change or revoke the trust at any time during your lifetime because you maintain control over your assets until death. Irrevocable trusts are more complicated because they typically cannot be modified.
If you need to make changes to an irrevocable trust, the process depends on the types of trust you have established. The most common types of trusts include:
This type of trust may be changed at any time if they are revocable.
Changes to this trust can be made if the trustor is alive. If they have passed, the trust becomes irrevocable.
This type of trust, designed to prevent someone from misusing assets, can be either revocable or irrevocable. They may be voluntarily or involuntarily transferred before payment.
Asset protection trusts are typically irrevocable, though trust protectors may have the authority to make modifications if necessary. Some trusts might also include provisions that permit alterations.
A contingent trust can be modified with unanimous consent from beneficiaries or under specific conditions.
These trusts may be modified or canceled while both partners are still alive. Once a partner dies, the trust generally becomes irrevocable. If you have an irrevocable trust, you may be able to convince the court to agree to a modification or engage in “decanting,” a process in which someone can transfer their assets to a new trust with different terms.
If a petition is presented before a judge, they may authorize changes based on the trustee’s inability to manage the trust. Your ability to alter a trust varies significantly depending on how it is written. To determine if your trust can be modified or terminated, seek legal advice from a skilled San Antonio attorney who could guide you through the process.
An irrevocable trust is designed to be unchangeable, but certain life circumstances may require termination.
According to state doctrine, a trust may be terminated when one person holds both legal and equitable title to the trust’s property. However, just because this means they have the right to the asset or property does not mean you have no other options.
Alternatively, you could get consent from the settlor and all beneficiaries to change or terminate the trust. To explore other options for trust alterations and termination in San Antonio, seek committed legal assistance.
We understand that life changes may require amendments to your trust. With nearly 20 years of experience in business law and estate planning, we are equipped to handle complex trust modification and termination in San Antonio. Our team has the necessary experience and knowledge to address your trust concerns.
Contact Sasha Begum at Begum Peláez-Prada PLLC to discuss your situation and any necessary modifications. We are committed to providing the support you deserve.
