Trust Modification and Termination in New Bedford

Trust modification or termination requires knowing the regulations to ensure you make changes in compliance with the law. You may wish to update the terms or add and edit beneficiaries or trustees. A modification may be necessary when you need to update a trust because of circumstances changing.

However, you may have to terminate a trust if the terms are complete or a financial change causes hardship. One of the benefits of revocable trusts is the option to make changes later down the road. Speak to a lawyer about trust modification and termination in New Bedford to learn more about the process. A knowledgeable trusts attorney could make recommendations for changing or canceling your trust.

What is a Trust?

Trusts are essential estate planning tools that allow people to transfer assets for management and protection while they are alive. Trusts provide grantors with a sense of security and enable them to make crucial decisions about distribution after death to leave a legacy.

Two primary types of documents are available, and which type is suitable for the individual depends on their specific needs. A revocable trust provides more flexibility, while an irrevocable trust protects those wishing to limit estate assets for long-term care facilities and end-of-life care. The latter may also provide more tax advantages.

Trust Modification Laws

Whether the party wishes to alter or cancel a trust, adhering to the state’s guidelines is essential. A mistake or oversight to invalidate the document or cause other issues later down the road. The rules in the Massachusetts Uniform Trust Code govern each of the following requirements for modifications:

  • The trust holder must send beneficiaries a written notice when modification involves changing the principal place of administration,
  • Once a trust matter has been brought before the court, continuing judicial supervision of the trust is not required unless the court determines it necessary
  • After court hearings for trust matters, unless the judge states otherwise, judicial supervision is no longer a requirement
  • The court provides specific procedures for the modification or termination of a trust instrument
  • Most trusts must adhere to the requirements of the Uniform Trust Code, regardless of the date of creation

An advantage of revocable trusts is that they provide more flexibility and relatively quick changes. During the strategy meeting, a trust modification and termination lawyer in New Bedford could answer specific questions about the process and legal requirements.

Modifying an Irrevocable Trust

While amending a revocable trust is usually straightforward, modifying an irrevocable trust or terminating the legal documents is more complex.

Since the passage of legislation in 2012, the trust code has offered an alternative method known as a non-judicial settlement agreement, which streamlines the requirements and procedure. Interested parties wishing to enter into the agreement can address the reasons and issues leading to the need for changes. The modification will be approved when it is within state guidelines.

Contact an Experienced Attorney About New Bedford Trust Modification and Termination

Trusts are practical estate planning tools with many advantages for the grantor and beneficiaries. While you must ensure compliance with the state’s rules to prevent mistakes invalidating the legal document, most changes or terminations are allowed and streamlined under the trust code.

A diligent lawyer experienced with trust modification and termination in New Bedford could answer your questions and help determine the best procedure to meet your goals and desires. Call today to schedule an appointment.

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