Premises Trust Irrevocable Inter Vivos Trust

[elmxl88]

NY
My mother set the above type trust account up with me as the Trustee. Can this type of Trust be reversed / changed, etc?

 

[adjusterjack]

If she is still alive she can rewrite it or cancel it, whatever she likes.

If she is not alive then, as trustee, you would have to follow the terms of the trust.

Why do you ask?

 

[elmxl88]

"
Irrevocable trusts usually cannot be changed, amended or altered in any way once they have been put into effect. However, certain situations permit some modifications based on the factors and circumstances. Most of these possibilities deal with judicial changes and action. However, some may be due to changes with the law, tax updates and similar items. If something needs to be altered in some manner, it is crucial to know what possibility is available and how best to use it to the advantage of the estate owner so he or she may ensure the estate plan is on track.

Modifications to trusts are possible when a judge has been given a request for judicial action. If the trust has not been clear or keeping with the original intent of the trust agreement, the judge may grant a change so that the intentions are realigned with what the creator of the trust requested when it was originally conceived. This often coincides with saving income through tax free transactions. If the trustee is not working through the real estate and other holdings as the estate owner wants or needs, this is generally why a request is submitted to a judge for a change. "

Was wondering if this applies in NYS.

My parents are protecting my sibling's inheritance and the dispensing of the monies are spelled out in the Trust. The sibling found out about it and it got ugly. He's getting 50% of a sizeable estate but the $ is being stipend monthly to him since we fear that his wife will run off with the money.

 

[adjusterjack]

Oops. Didn't notice the "ir."

My parents are protecting my sibling's inheritance and the dispensing of the monies are spelled out in the Trust. The sibling found out about it and it got ugly. He's getting 50% of a sizeable estate but the $ is being stipend monthly to him since we fear that his wife will run off with the money.

"are" protecting implies that both your parents are still alive, correct?

Here are two articles that address trusts in NY.

New Yorkers Can Modify "Irrevocable" Trusts | Rivkin Radler

Contesting a Trust in New York. How to Contest a Trust. (nyestateslawyer.com)



Disclaimer: The links provided are for information only and are not referrals. The sites came up as a result of a search for challenging an irrevocable trust in NY. Neither I nor freeadvice.com have any responsibility for the content. It is recommended that an attorney be consulted due to the risk of relying on potentially incorrect information obtained on the internet

 

[zddoodah]

Can this type of Trust be reversed / changed, etc?

No way to know what's possible without reviewing the trust instrument.

You, as trustee, and whoever else wants to see changes made should consult with a local trust attorney.

 

[LdiJ]

"
Irrevocable trusts usually cannot be changed, amended or altered in any way once they have been put into effect. However, certain situations permit some modifications based on the factors and circumstances. Most of these possibilities deal with judicial changes and action. However, some may be due to changes with the law, tax updates and similar items. If something needs to be altered in some manner, it is crucial to know what possibility is available and how best to use it to the advantage of the estate owner so he or she may ensure the estate plan is on track.

Modifications to trusts are possible when a judge has been given a request for judicial action. If the trust has not been clear or keeping with the original intent of the trust agreement, the judge may grant a change so that the intentions are realigned with what the creator of the trust requested when it was originally conceived. This often coincides with saving income through tax free transactions. If the trustee is not working through the real estate and other holdings as the estate owner wants or needs, this is generally why a request is submitted to a judge for a change. "

Was wondering if this applies in NYS.

My parents are protecting my sibling's inheritance and the dispensing of the monies are spelled out in the Trust. The sibling found out about it and it got ugly. He's getting 50% of a sizeable estate but the $ is being stipend monthly to him since we fear that his wife will run off with the money.

You might point out to your sibling that your parents are still alive and its their money to spend or do with as they please. They don't have to leave anything to anyone if they don't want to do so. Your sibling has no right to get ugly about anything.

 

[zddoodah]

You might point out to your sibling that your parents are still alive and its their money to spend or do with as they please.

To be precise if the parents put the money in an irrevocable trust of which neither of them is a trustee, it WAS their money to do with as they please, but it no longer is their money.

 

[Taxing Matters]

NY
My mother set the above type trust account up with me as the Trustee. Can this type of Trust be reversed / changed, etc?

As others have pointed out, there is no way to give a good answer to that without actually reading the trust terms. As the trust is irrevocable, changing it or dissolving the trust is not so simple. The trustee might have some discretion in handling the trust. If its well written, it will lay out exactly what you must do and what things are up to your discretion. It is possible that part of the reason the irrevocable trust was created was for tax advantages, in which case making changes or dissolving the trust might result in large tax bill attached to it. I would recommend that you see a trust attorney to review the trust and explain how it works and what discretion you have. If that attorney is not also an expert in estate, gift, and trust taxation, then you'll want to also see an attorney who is a tax expert. You should be able to pay the attorney's fees from the trust assets.