Irrevocable Trust(s) & changing Trustees, or Trust Form to Revocable

[patmar]

What is the name of your state?
Texas
Iam an only child, (married w/ prenuptial agreement), inheritor of my parents' large estate and have a special needs grown child. When my last parent died, I allowed an irrevocble trust to be set up with me as grantor. Prior to the last parent's death, that parent had also set up an irrevocable trust. Created within my irrevocable trust is a special needs trust for my child. There is also a small charitable remainder trust that was created when my irrevocable trust was drawn up. The person I selected as trustee is not working out to my satisfaaction. I did not understand the details of the irevocable trusts as I do now and this trustee has the right to name the charity of his choice and name succesor trustees. I also made this person the executor of my estate and gave him a grreat many ppowers I now regret. I would like to change trustees at the least, or moreover, change the type of trust to revocable if possible. At present I have no say concerning the monies held in these trusts, their disttribution and dispersement, and very little negotiating power with the trustee. The current trustee is unwilling to step down much less even think of changing the type of trust(s) tthat were created due to his advice. If an irrevocable trust is indeed irrevocable as the Court and law would see things, then I would settle for having a reputable bank take over as trustee. My current trustee at the beginning that i I wouls be able to change trustees, However, he has refused to consider the matter. I have hired an attorney who will rewrite my will and try and do what he can. I would appreciate any information regarding circumstances in which an irevocable trust can be ammended or changed to a revocable trust and any other recourses available to me in this situation. Thank you. Patmar

 

[Dandy Don]

At any time during the creation of your trust, did you have the documents reviewed by a trust attorney to insure that they were legally valid? The matter about your desire to replace the trustee is something that should be discussed with a local trust attorney who is familiar with your state's trust law and replacement will probably be easy to achieve.

 

[patmar]

Irrevocable/revocaable Trust

Yes, the trustee is an attorney/investor and he recommended three people to serve as my personal attorney. I picked an estate attorney who drew up the trusts, but didn't expalin all of the ramifications of an irrevocable trust. I also knew that irevocable trusts were supposed to be benenficial with income taxes and so I went ahead. I felt at the time (three years ago) that the trustee would work with me and treat me as an equal with valid desires and ideas regarding the trsuts. As things stand right now it is a struggle to get the trustee to see any of my viewpoints regarding investments, or disttribution of the money. He has taken a paternalistic attitude toward his role and that is not compatible with what I understood was our approach to my inheritance.

In aswer to you second question I have retained a knolwedgeable estate and income tax attorney who is working to resolve the problems related tto this matter and understands Texas as well as Federal law. The previous atorney is no longer a factor as I let her go. This problem came in part from my not going over the documents as thouroughly as I should have and also from the former attorney not expalining in depth what was entailed with the establishment of tthe irrrevocable trusts. I seem to have learned too lae jus how confining such ttrusts can be. If i couldlook up case law and find aanyy in which irevocaable trusts were changed it would help me learn more about what to expect.

Thank you for responding to my previous query. If you can think of anything to research regarding the above, i would certianly appreciate it. Patmar

 

[Dandy Don]

A sympathetic attorney or paralegal would have to show you how to research the case law, but if you are interested in looking at Texas trust law, you will need to scan the "www.capitol.state.tx.us/cgi-bin/cqcgi" site to search the statutes for the PROBATE CODE and the trust section is probably somewhere within those 10 chapters. But it may be a little bit complex/confusing so you will probably need the assistance of an attorney to make sure you are interpreting correctly.

 

[patmar]

Irrevocable Trusts

Thank you for the information. I will start searching and if help isneeded will ask for it. I appreciate you help. Patmar