Adding Trust Company Special Provisions after Trust becomes Irrevocable

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Cristhal
Posts: 2
Joined: Sat Sep 07, 2019 4:37 pm
Location: Maryland

Adding Trust Company Special Provisions after Trust becomes Irrevocable

Post by Cristhal » Wed Sep 11, 2019 7:25 pm

Hi, I am new in this forum, which I discovered recently and found it to be very helpful.

I am in the process of planning a living irrevocable trust and I was considering naming one of my sons as a "temporary" successor trustee during a potential period of my incapacitation and early period after my death (during which real estate would be sold and retirement accounts transferred to the trust). If I leave instructions for him to hire a corporate trustee (I would leave him a list of preferences) before any distributions to the beneficiaries (including him) is made, would he be able to add at that time, after the trust becomes irrevocable, the Special Provisions that the Trust Company would require before accepting the trust? Since I assume that this addition would be done as an appendix, is that considered a modification of the Trust? Is that generally permissible? Would this be made easier if I include in the Trust a provision stating that such addition of Special Provisions is permissible?

Thank you,
Last edited by Cristhal on Thu Sep 12, 2019 11:52 am, edited 1 time in total.

Gill
Posts: 5560
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Adding Trust Company Special Provisions after Trust becomes Irrevocable

Post by Gill » Wed Sep 11, 2019 8:35 pm

bsteiner is the creative draftsman on this forum and may have some thoughts, but I know of no way to amend an irrevocable trust. My thought would be to include broad language in the original document which would likely be acceptable to most corporate trustees.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

User avatar
FIREchief
Posts: 3466
Joined: Fri Aug 19, 2016 6:40 pm

Re: Adding Trust Company Special Provisions after Trust becomes Irrevocable

Post by FIREchief » Thu Sep 12, 2019 11:44 am

I believe that this would be within the realm of a trust protector. A trust can be drafted so as to allow appointment of a trust protector at such time that certain terms of the trust (as defined within the trust document) may need be altered even though the trust is irrevocable.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

Topic Author
Cristhal
Posts: 2
Joined: Sat Sep 07, 2019 4:37 pm
Location: Maryland

Re: Adding Trust Company Special Provisions after Trust becomes Irrevocable

Post by Cristhal » Thu Sep 12, 2019 2:47 pm

Thank you both for your prompt replies. I will wait to see if bsteiner responds with his valuable advice.

dachshunddad
Posts: 40
Joined: Mon Sep 03, 2018 8:22 pm

Re: Adding Trust Company Special Provisions after Trust becomes Irrevocable

Post by dachshunddad » Thu Sep 12, 2019 4:30 pm

FIREchief wrote:
Thu Sep 12, 2019 11:44 am
I believe that this would be within the realm of a trust protector. A trust can be drafted so as to allow appointment of a trust protector at such time that certain terms of the trust (as defined within the trust document) may need be altered even though the trust is irrevocable.
I second that. That exact language was put in mine and the trust protector (law firm) made changes.

Post Reply