Orange County California
Trust Attorneys

Call us: (714) 282-7488
Select Page

If circumstances have changed dramatically since an Anaheim irrevocable trust was created, can it’s terms be modified? Typically, the answer to the question of whether an irrevocable trust in Anaheim can be amended is “no.” The name speaks for itself—It is irrevocable. However, the California Probate Code for allow for a modification in certain circumstances. For example, if circumstances have changed in a way that the creator of the trust couldn’t have predicted at the time it was drafted, an exception might be made. In addition, carrying out the irrevocable trust under its current terms must defeat or substantially impair the intended purposes of the trust. Under these circumstances, a trustee or beneficiary can petition the court to allow a modification.

This exception to the general rule that irrevocable trusts in Anaheim cannot be modified is perhaps the most common provision utilized by a trustee who is concerned about a beneficiary. For example, imagine the following scenario:

  • An irrevocable trust is set up for the benefit of the beneficiary.
  • The trust calls for the trustee to distribute all of the assets to the beneficiary when he reaches age 30.
  • At age 29, the trustee learns that the beneficiary is addicted to drugs.
  • The trust does not contain any provisions that allow for the trustee to withhold the trust assets under these circumstances.
  • The trust assets consist mainly of a controlling interest in the family’s business.

Under this scenario, the trustee could petition the court for permission to modify the irrevocable trust to add a postponement provision. This would allow the trustee to delay distributing the stock to the troubled beneficiary.

If circumstances have changed dramatically since an Anaheim irrevocable trust was created, can it’s terms be modified? If you are the trustee of an irrevocable trust that is in dire need of a modification, all hope is not lost. To learn more about amending trusts in California, view our free guide, The Ten Things You Must Know Before Creating (or Amending) Your Will or Trust. Call our office of experienced attorneys today at (714) 459-5481 for a consultation.

Pin It on Pinterest