Article On Making Misfit Trusts Work

Beth A. Wood (Moore & Van Allen PLLC) recently published an article entitled, Making Misfit Trusts Work When Planning Goes Awry, 2 Prob. & Prop. 55-58 (2016). Provided below is an excerpt from the article:

The draconian view that the “plain meaning” of the exact words contained in an irrevocable trust must forever control in the trust has been substantially abandoned. Through the evolution of the Restatement (Third) of Property: Wills and Other Donative Transfers, the Uniform Trust Code (UTC), and various state decanting statutes, the formerly fatal flaws can be fixed, and irrevocable trust terms that are no longer desirable can be altered. As background, this article will touch briefly on Article 4 of the UTC and state decanting statutes in general. The main focus, however, will be on reformation under UTC § 415 and retroactive modifications under UTC § 416 to accomplish tax objectives and the issues surrounding both.