Irrevocable trusts have been part of estate planning for years. They have been used for a variety of purposes, such as to remove assets from a person’s estate in order to reduce taxes, to protect assets from creditors, and to provide management of assets for beneficiaries. However, many do not like the idea that the trust is irrevocable. In response to changed circumstances, state laws have been evolving over time to permit changes to what were once instruments that could not be modified. These changes raise several issues, both legal and otherwise.
A version of this article originally appeared in the January 2019 version of Thomson Reuters Estate Planning magazine.