Unitrust Conversion

[PfohlHart123]

What is the name of your state (only U.S. law)? Pennsylvania
I am trustee for a trust where the primary beneficiary is to receive income only and ultimate beneficiaries of the corpus are charities. I would like to convert this trust to a unitrust. My question is can I do this without the blessing of a court as long as I follow the quide lines of #8105 Power to convert to a unitrust. i.e. 4% distribution, beneficiary notification, etc..
Thanks for any assistance.
Regards
C

 

[tranquility]

What is the name of your state (only U.S. law)? Pennsylvania
I am trustee for a trust where the primary beneficiary is to receive income only and ultimate beneficiaries of the corpus are charities. I would like to convert this trust to a unitrust. My question is can I do this without the blessing of a court as long as I follow the quide lines of #8105 Power to convert to a unitrust. i.e. 4% distribution, beneficiary notification, etc..
Thanks for any assistance.
Regards
C

It seems the purpose of the statute. There are also some protections if you do it wrong. While any such decision should be run past your trust attorney for unforeseen problems, the statute, if followed should allow you to not balance the needs of the income and remainder beneficiaries any more.

 

[PfohlHart123]

It seems the purpose of the statute. There are also some protections if you do it wrong. While any such decision should be run past your trust attorney for unforeseen problems, the statute, if followed should allow you to not balance the needs of the income and remainder beneficiaries any more.

Thanks for your response and yes I will definitely pass it by counsel. I plan the notify all the beneficiaries both primary and Ultimate to also see if they are on board and any negative feedback will probably stop the process. But I see this as a win/win to all involved. You are correct about the balancing act as I would like to manage to total return as opposed to Income vs. Growth.
Regards