When and How You May Modify or Terminate an Irrevocable Trust and Pitfalls to Avoid

Private client partner Lisa Presser and associate Brian Balduzzi coauthored an article for The Legal Intelligencer titled “When and How You May Modify or Terminate an Irrevocable Trust and Pitfalls to Avoid,” which discusses how to modify or terminate “irrevocable” trusts, analyzes key issues and potential pitfalls, and highlights best practices.

Presser and Balduzzi outline available options for trust modification or termination, which may depend on the applicable governing law, type of trust, who consents among the settlor, trustees, and beneficiaries, and the proposed changes and rationale.

The authors also provide insight on how to avoid adverse estate, gift and generation-skipping transfer tax consequences when modifications or terminations are made for nontax reasons.