If you have ever thought about leaving a trust behind for your loved ones, you may wonder what an irrevocable trust entails.
These trusts typically hold assets while you are alive, meaning you no longer legally own them. They also often protect those assets from costs associated with other life issues, such as nursing homes.
Change or no change
According to the Times Herald-Record, normally you cannot change or revoke an irrevocable trust after it is in writing. However, in New York, it is possible for you to technically change details in a living trust.
This includes taking property out of the original trust or even changing the amount of money you plan to give your beneficiaries. New York is one of the few states that allows people to modify their original plan.
Actions to take
One way you can do this is by gathering each party involved to agree in writing that everyone wants to revoke the current trust. This agreement officially allows you to modify this irrevocable trust. Often, the parties involved are children and parents or other family members.
Assembling all the involved parties can lead to high tensions if one party does not agree with this step. In fact, it is not unheard of for the trustee and other parties to amend the trust so that the disagreeing party’s participation is not necessary to change it. Therefore, you should be aware of the possibilities while using this clause.
This type of trust is “irrevocable” because the person who creates the trust cannot revoke it alone. However, it does not mean that a group of beneficiaries cannot amend or change it entirely. Knowing this New York law can help you plan for your estate after death.