An Irrevocable Trust Can Terminate

I often have clients that want an irrevocable trust.  I always advised them that, except in very specific situations that could involve the court, the trust can not be revoked, changed or revised.  Here is a common example of how a Irrevocable Trust might be used. 

The parents want to place their home in Trust for the benefit of their special needs child.  Upon his death, the home would go to the other surviving children.  We would start with a Revocable Trust for the parents.  The home would be placed in the Trust and the parents would go about their life as usual.  The terms of the Trust would specify that upon their death, the Trust will become Irrevocable.  The Trustees therefore could not revoke, change or revise.  However, there could be terms in the Trust that would provide for a termination of the Trust.  In this example, the Trust would in fact terminate upon the death of the special needs child.  The home would then transfer to the surviving children FREE of any trust terms. 

Let us protect and preserve your assets.  Contact us at http://www.ythlaw.com/.