Can Irrevocable Trusts Provide Protections and Flexibility?

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KS and MO Attorney Kyle E Krull

Written by Kyle Krull

Attorney & Counsellor at Law Kyle Krull is president of the Law Offices of Kyle E. Krull, P.A., an Estate Planning Law Firm located in Overland Park, KS. Estate Planning Attorney Kyle Krull has provided continuing education instruction to attorneys, accountants, and financial professionals at local, state, and national programs.

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POSTED ON: April 10, 2024

Flexibility in revocable or irrevocable trusts is key to addressing changes in the economy, laws, and family circumstances.

Trusts provide multiple estate planning benefits.

With Tax Day just under a week away, people are once again focusing on their financials in detail.

If you tend to avoid topics related to money, you can take action now while it is on your radar and you have a better idea of your assets and liabilities.

Contrary to popular opinion, anyone can benefit from estate planning.

Additionally, trusts are not only for the wealthy.

Estate plans help to protect everyone you love and everything you have.

Trusts can provide flexibility and protections in estate planning.

Some states allow for changes to be made to irrevocable trusts.

Embrace Estate Planning Flexibility to Future-Proof Your Legacy.

Tax laws at the federal and state levels are not set in stone.

Our Congress and the Senate consistently write and propose new legislation.

In addition to changes in laws, your finances will be impacted by both the economy and your personal circumstances.

Because change is inevitable, creating an estate plan with flexibility is helpful.

According to a recent Kiplinger article titled “2024 Uncertainty Highlights Need for Estate Plan Flexibility,” trusts can be used strategically to provide flexibility in your preparations.

A More Flexible Irrevocable Trust Agreement

Although they are often more challenging to change than revocable living trusts, irrevocable trusts may undergo minimal revisions.

The Uniform Trust Code (UTC) and state laws govern whether and under what circumstances an irrevocable trust may be modified.

Work with an experienced estate planning attorney to better understand your options.

If you can allow your irrevocable trusts to be modified, set up limitations so changes cannot contradict your intentions.

How Naming A Trust Protector Adds Flexibility to Your Estate Plan

Those who create irrevocable trusts may consider designating a trust protector.

What is a trust protector?

This individual is given authority to modify a trust as the need may arise.

Sometimes, the attorney who drafts the trust will also serve as a protector.

What kind of edits might be made to a trust?

Minor revisions should be made to preserve the original purpose and involve beneficiaries, successor trustees, and co-trustees.

By having a trust protector, you can more efficiently respond to changes required for the trust to remain relevant and reflect changing circumstances.

Define the Purpose of Your Trusts Beyond Distributing Assets.

Clarity of vision is critical to addressing your goals and communicating your wishes.

Although trusts help distribute assets, they are also beneficial in preserving your legacy.

You can underscore your values, enhance the lives of your loved ones, prioritize specific needs, protect your standard of living, and communicate a statement of your purpose.

What are the Key Takeaways for Trusts?

With elections, economic challenges, and inflation, flexibility is invaluable in estate planning.

Some states allow for minor adjustments to irrevocable trust agreements.

Trust protectors can be appointed to make minor revisions to address the needs of successor trustees, co-trustees, or beneficiaries.

Adding a purpose statement can clarify your goals and intentions to your trustees, beneficiaries, and any other entities or individuals involved in its execution and administration.

In conclusion, the uncertainties of life require both clarity of vision and flexibility in estate planning.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Kiplinger (Jan. 22, 2024) “2024 Uncertainty Highlights Need for Estate Plan Flexibility”

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