Modifying the Terms of an Irrevocable Trust

Historically, when a grantor established and funded an irrevocable trust, a grantor could not change the trust’s terms. Now, there is a technique called trust decanting for altering irrevocable trust terms.

What is Trust Decanting

Transferring assets from an established trust to a new trust with modified trust terms is trust decanting. The process is similar to decanting wine, where you allow the sediment to settle to the bottom of a decanter before pouring the wine into a new decanter or glass leaving the unwanted sediment in the original decanter.

Nevada Trust Decanting

Nevada is an ideal trust jurisdiction for decanting a trust and leads the U.S. in providing grantors and trustees with outstanding control and flexibility. In Nevada, decanting a trust does not require court approval expediting the process. Grantors often establish irrevocable trusts in Nevada to gain the most secure asset protection in the country. Trust decanting is a powerful solution for trusts in general, but especially for Nevada trusts.

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Insights: A Deeper Dive into Nevada Trustee Services