Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Protecting adult children from themselves

Parents in Florida looking to provide financial peace of mind for their children sometimes set up an irrevocable trust with the assumption that the funds will be used responsibly by the time they are accessible. Unfortunately, this is not always the case. It's not unusual for a trust holder to become frustrated with an adult child with no real ambition to seek meaningful employment due to the anticipation of a trust fund "kicking in" when they reach a certain age.

At one time, it was conventional wisdom for estate planners to suggest irrevocable trusts. Even though economic and societal circumstances have changed, irrevocable trusts can be difficult or nearly impossible to alter. But this is now changing since many states have added "decanting" statutes that allow trust holders to fix a broken irrevocable trust. What's sometimes referred to as a "do-over trust" allows a trust holder to transfer assets from an existing irrevocable trust to one with more suitable provisions.

This is a fairly new legal concept, although there are many reasons why trust holders may wish to consider it. For instance, an old trust that ends with a creator's children may be converted to a dynasty trust that provides for mutliple generations if assets have significantly increased since the original trust was set up. Decanting may also be used to combine trusts, set up a special needs provision for a disabled child, or change distribution arrangements for added protection against creditor claims, pending liabilities, and similar issues.

Decanting statutes now allow trust creators to fix poorly drafted or antiquated irrevocable trusts. However, specific stipulations for doing so can vary from state to state. For this reason, an estate planning attorney may recommend moving the trust to another state that allows for more flexibility, especially if a trust has a common change of situs provision.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Miami, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions