Short version: My grandfather set up a trust in '72 for my mother, myself, and my 3 siblings. It was and still is only supposed to be used for our health & education needs. Over the decades it has grown to a value of over $2M and will terminate upon my mother's death, with the proceeds split evenly between my siblings and me.

Mom is 82 years old and very healthy. All of the beneficiaries would like the trust to terminate as it has long since outlived it's usefulness. My mother has a net worth of approximately 5.5M and she would like to disperse the money from the trust to her offspring now, instead of us having to wait until she passes.

Obviously, I'll contact an attorney, but any advice would be greatly appreciated.

93MarineHorn said:

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Short version: My grandfather set up a trust in '72 for my mother, myself, and my 3 siblings. It was and still is only supposed to be used for our health & education needs. Over the decades it has grown to a value of over $2M and will terminate upon my mother's death, with the proceeds split evenly between my siblings and me.

Mom is 82 years old and very healthy. All of the beneficiaries would like the trust to terminate as it has long since outlived it's usefulness. My mother has a net worth of approximately 5.5M and she would like to disperse the money from the trust to her offspring now, instead of us having to wait until she passes.

Obviously, I'll contact an attorney, but any advice would be greatly appreciated.

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My wife's father did this before. The process is called decanting. I believe you cannot change the irrevocable part, but I believe if all parties (owner/trustee, beneficiaries, etc.) are in agreement, then the conditions can be changed. In other words, while the trust may not be dissolved, the terms can - so instead of health and education, the money can be used for x, y, z, where those items are pretty much anything you and your siblings want.

Obviously, I'm not an attorney but have seen it done.

jwoodmd said:

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93MarineHorn said:

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Short version: My grandfather set up a trust in '72 for my mother, myself, and my 3 siblings. It was and still is only supposed to be used for our health & education needs. Over the decades it has grown to a value of over $2M and will terminate upon my mother's death, with the proceeds split evenly between my siblings and me.

Mom is 82 years old and very healthy. All of the beneficiaries would like the trust to terminate as it has long since outlived it's usefulness. My mother has a net worth of approximately 5.5M and she would like to disperse the money from the trust to her offspring now, instead of us having to wait until she passes.

Obviously, I'll contact an attorney, but any advice would be greatly appreciated.

---

My wife's father did this before. The process is called decanting. I believe you cannot change the irrevocable part, but I believe it all parties (owner, beneficiaries, etc.) are in agreement, then the conditions can be changed. In other words, while the trust may not be dissolved, the terms can - so instead of health and education, the money can be used for x, y, z, where those items are pretty much anything you and your siblings want.

Obviously, I'm not an attorney but have seen it done.

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Thx!

Rupert Murdoch is doing that right now.
https://www.wsj.com/business/media/rupert-murdoch-family-rift-trust-385f73d2?st=FuYAha&reflink=desktopwebshare_permalink