Trust Modification And Termination In Houston

Trusts are a crucial part of an estate plan in Houston, Texas. They can hold valuable assets and pass them on to the next generation. They often give the settlor – the person who created the trust – more control over what happens to the assets after they pass away.

At Doehring & Doehring Attorneys at Law, our knowledgeable trust attorneys have amassed decades of experience. We can help you complete complex tasks such as modifying or terminating a trust while clearly explaining all your legal options. Our award-winning team also offers complimentary initial consultations, so you can sit down with an estate planning lawyer with no financial risk.

Revocable And Irrevocable Trusts

A trust can be either revocable or irrevocable when the settlor creates it. If the trust is revocable, it can be ended or modified at any time.

With an irrevocable trust, however, there are only certain circumstances that allow modifications to be made or that could lead to the termination of the trust entirely. One of the most important things to note is that the Uniform Trust Code allows beneficiaries or trustees to file for termination or modification, but they must demonstrate why doing so would be necessary. Some examples include:

• Changed circumstances, such as when a beneficiary’s financial circumstances change and they need additional protections
• Trustee misconduct, which may be grounds to remove the trustee entirely
• Unforeseen events, such as injury or illness, that affect the person’s needs
• Changes to tax laws at either the state or the federal level
• Significant errors or mistakes that were originally written into the trust agreement
• The need to add special needs provisions to the existing trust
• Combining smaller accounts and trusts in order to form one larger trust as an estate plan is modified and consolidated
• Taking a large trust and splitting it up into a number of smaller separate trusts

Additionally, the settlor cannot modify or terminate the trust on their own. They need the express consent of the beneficiaries. If there is a disagreement, both parties may have to go to court. This is a much more complex process than altering a revocable trust.

Call For A Consultation

Trust modification and termination can be useful but complicated in Texas, and you need to know what legal steps to take. To get started with a complimentary consultation, call us at 866-456-2361 or use the online contact form today.