Decant Your Irrevocable Trust to Better Meet Your Changing Goals
Have you set up an irrevocable trust, only to find your life goals have changed 10, 15, or 20 years down the road? It may be possible to “decant” this irrevocable trust to help better meet your goals.
Essentially, decanting is the process of distributing assets from an old trust to a new trust with more favorable terms. This allows you to leave the unwanted terms in the original trust. Some common reasons to decant include:
- Extending the term of the trust
- Correcting previous drafting errors
- Modifying the powers of appointment
- Moving the trust to a state with more favorable laws
- Changing trustee provisions
Not all trusts are eligible for this technique, so if you have an inefficient irrevocable trust you should contact an Anders advisor to discuss your options.