Irrevocable trusts offers many benefits — for instance, they offer major protection against creditors. This is why some asset owners in Florida pursue these types of trusts during the estate planning process. The challenge, though, is that an irrevocable trust generally cannot be amended.
The fact that irrevocable trusts generally cannot be changed can be problematic given the fact that life is constantly changing. Even the most accurate, up-to-date document written this year will fail to offer the best benefits to beneficiaries a decade or two later. After all, the laws regarding taxes, nursing homes, divorce and personal injury change frequently.
Fortunately, the law governing trusts has evolved during the past 20 years. During this time, new procedures for amending irrevocable trusts have been created. However, these procedures tend to be cumbersome, meaning that trust-related issues end up being difficult or even impossible to resolve.
The best solution in this situation is to incorporate flexible provisions into an irrevocable trust. For instance, beneficiaries can be given powers of apportionment, which would permit them to act in accordance with changing circumstances. The goal is to produce an irrevocable trust that will not fall behind even as circumstances and laws change.
Estate planning can understandably be overwhelming and confusing due to its complicated nature. However, an attorney can provide the guidance needed to generate essential estate plan documents in Florida. The attorney’s ultimate aim is to make sure that the best interests of an asset owner as well as his or her future beneficiaries are protected during each stage of the planning process.