06 Oct Can an irrevocable trust be changed or canceled?

Q. Can an irrevocable trust be changed or canceled?
— Unsure

A. Trusts can be helpful financial and estate planning tools, but they can be confusing.

An irrevocable trust may be amended or terminated under certain circumstances set by New Jersey’s adoption of the Uniform Trust Code, said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

She said it can be amended or terminated by consent without court approval if all of the trustees and all of the beneficiaries agree. Otherwise, court approval is required, she said.

“A court may be able to modify or terminate a trust because of unanticipated circumstances, the assets in the trust are insufficient to justify the cost of administration, to correct mistakes, and to achieve the tax objectives of the individual who created the trust,” Whitenack said.

You should consult with a trust attorney to see whether your circumstances warrant modification or termination.

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This story was originally published on Oct. 6, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.