Elder Law Answers
Can I Transfer a House with a Medicaid Claim on It into a Trust?
I am 58 and retired. If Medicaid has a claim on my property now, is it too late to place my property in an irrevocable tru...
Read moreCan I Remove a Beneficiary from an Irrevocable Trust?
- January 9th, 2024
Q
I have funds in an irrevocable trust for my two daughters, but one has been estranged for eight years. I want to give everything to the daughter I‘ve always relied on. And what happens if she predeceases me?
A
We’re sorry to hear about the troubles that have led to your desire to make changes to an irrevocable trust. You may not be able to change anything unless your irrevocable trust includes a power of appointment.
Power of Appointment
A power of appointment would permit you to change the ultimate distribution, often through your will. If you can change the beneficiaries, you could provide that if any, such as your daughter, do not survive you, the funds will go to other individuals or charities that you value.
Trust Decanting
There is also another way to modify an irrevocable trust through trust decanting. It is a complex process that requires an estate planning attorney to create and combine a new trust. Depending on your situation, it may or may not make sense. Only half of the states permit the decanting of a trust, and it can be expensive.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.