Estate Law Questions? Ask an Estate Lawyer.
As a matter of trust law, even though a trust may be "irrevocable", it can always be revoked by a probate court judge issuing an order to do so. One of the reasons that a judge would issue such an order is if there was a material change in the trust that was unforeseen when it was created.
With such a dramatic reduction in income, that has clearly frustrated the intent of the trust when it was formed and I would opine that a judge would find this convincing grounds to either reform the trust or simply dissolve it and deliver the assets to the beneficiary.
This is something that a probate or trust law attorney could assist with as the motion to dissolve would need to be individually drafted and set out the specific details about why the trust changed and why it should now be dissolved...
So the 2007 law doesn't really come into play here because a probate court judge can always order a trust dissolved..