Can a broken trust be fixed?
Abstract: An irrevocable trust has long been a key component of many estate plans. But what if it no longer serves its original purpose? Is it too late to change it? Depending on applicable state law, the trust’s owner may have several options for fixing a “broken” trust. This article explains how a trust can become broken and possible solutions to fixing it. But a sidebar warns of the federal tax consequences that may be associated with making changes to a trust.