Wednesday, July 16, 2014
Big life changes or just the passage of time can create problems for long established trusts. Just the fact that the beneficiaries are aging can make the trusts less efficient than when they were created. Changes in tax laws and the value of investments can also affect a trust over time. While options for correcting developing problems are limited if the trust is irrevocable, it is still important to take inventory and check in on all family trusts from time to time. Some possible solutions include discontinuing future funding of problem trusts and creating new ones, or creating an LLC for the trust to invest in.
See Judith Saxe, Old Trusts, New Problems, Private Wealth, July 11, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.