When it comes to estate planning using irrevocable trusts, many people are under the impression that an irrevocable trust can never be changed or updated. This is not entirely correct, however. The California Probate Code allows for a trustee or beneficiary to petition the court to revise an irrevocable trust. Doing so, however, should be done only with the supervision and guidance of an experienced attorney. An unknowledgeable trustee or beneficiary should be aware of potential pitfalls in modifying an Anaheim irrevocable trust. The pitfalls could include:
- If there are any beneficiaries who are uncooperative, it is unlikely that they will consent to any modification of the irrevocable trust that changes, limits, or restricts their interests in the trust.
- Obtaining the consent of any beneficiary who is a minor may require the appointment of a guardian ad litem in order to represent the interests of that minor.
- Obtaining the consent of any contingent remainder beneficiaries may be difficult or impossible.
- Modifying the irrevocable trust in San Diego by obtaining the consent of the beneficiaries could result in unintended tax consequences.
Despite the potential pitfalls, your circumstances may still create a need to update an Anaheim irrevocable trust. Fortunately, you do not have to navigate the modification process alone. To learn more about updates to trusts in California, view our free guide, The Ten Things You Must Know Before Creating (or Amending) Your Will or Trust. Call us at (714) 459-5481 today to schedule a consultation.