A friend and client called me this morning wanting to amend his irrevocable trust he had established before he met me. Irrevocable trusts (as opposed to revocable trusts) are created for many reasons. Quite often, a party to a trust will want to amend an irrevocable trust. Is this possible?
The Louisiana Trust Code states the following rules, in general, regarding amending irrevocable trusts:
- If the trust unchanged would defeat or substantially impair the purposes of the trust, then the proper court may order the termination or modification of the trust;
- If the trust has assets less than $100,000 in value, and the costs of administration would defeat or substantially impair the purposes of the trust, the court may provide for the distribution of the trust property to the beneficiaries.
- If the purpose for which the trust was created becomes impossible of accomplishment or illegal, then the proper court may order the termination or modification of the trust.
Modifying an irrevocable trust can be a big deal. You typically have to file a petition at the proper courthouse and convince a judge that your circumstances fit one of the above reasons for changing the irrevocable trust.
Nonetheless, we've had lots of success amending irrevocable trust. If you have similar concerns or questions, feel free to give me a call (225) 329-2450 or drop me an e-mail at firstname.lastname@example.org