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RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 42209
Experience:  Texas lawyer for 30 years in Estate law
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My Mom's revocable trust directs that her assets be

Customer Question

My Mom's revocable trust directs that her assets be distributed in the form bypass trusts to each of three beneficiaries: me , my brother, and my daughter. Me and my brother are the executors. The bypass trusts were not needed to avoid estate taxes since the trust worth is only$1.7M. The revocable trust was put together bin 2003, but these days tax avoidance isn't necessary. How can we get around the restrictions of bypass trusts.
Submitted: 4 months ago.
Category: Estate Law
Expert:  RayAnswers replied 4 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Expert:  RayAnswers replied 4 months ago.

You would need to motion the probate court here to modify the terms of the trust.Unless the mom here is alive and can amend the trust then you need court orders to allow such modification.It is very common for the courts to grant such modification because the terms are no longer needed.

Expert:  RayAnswers replied 4 months ago.

You can also do this by agreement between all the beneficiaries

2015 Maryland Code
ESTATES AND TRUSTS
Title 14.5 - MARYLAND TRUST ACT.
Subtitle 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST.
§ 14.5-410 - Modification or termination of trust.

Universal Citation: MD Est & Trusts Code § 14.5-410 (2015)

(a) Termination or modification of noncharitable irrevocable trust. --

(1) A noncharitable irrevocable trust may be terminated on consent of the trustee and all beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.

(2) A noncharitable irrevocable trust may be modified on consent of the trustee and all beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.

(b) Spendthrift or other protective provision not preventing termination. -- The existence of a spendthrift provision or similar protective language in the terms of the trust does not prevent a termination of a trust under subsection (a)(1) of this section.

(c) Distribution following termination. -- On termination of a trust under subsection (a)(1) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.

(d) Modification or termination where not all beneficiaries consent. -- If not all beneficiaries consent to a proposed modification or termination of the trust under subsection (a) of this section, the modification or termination may be approved by the court if the court is satisfied that:

(1) If all beneficiaries had consented, the trust could have been modified or terminated under this section; and

(2) The interests of a beneficiary that does not consent will be adequately protected.

I appreciate the chance to help you today.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Expert:  RayAnswers replied 4 months ago.

Lawyer referral to modify here by agreement or court of you have too.

Lawyer Referral Services

COUNTY NUMBER

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Expert:  RayAnswers replied 4 months ago.

Thanks again John and good luck to you .

Thanks for rating 5 stars.