| 1. Amendment of a trust governed by California law is only possible if
the governing trust instrument expressly permits such amendment. 2. The Internal Revenue
Service is always bound by the terms of a court order amending the terms of an irrevocable
trust.
3. A trust with a spendthrift provision can never be amended.
4. The only way to accomplish amendment of a trust governed by California law is by a
court order amending the terms of the trust.
5. A trust can never be amended to qualify it as a qualified domestic trust (QDOT).
6. A no-contest clause in a will or trust has no applicability when considering whether
or not to amend a trust.
7. Trustee provisions in an irrevocable trust cannot be changed.
8. In the proper circumstances, a disclaimer can be an effective alternative to a
court-ordered amendment.
9. California's Probate Code includes "savings clauses" which may help to
cure faulty marital deduction clauses.
10. Tax-oriented trusts such as GRATs, GRUTs, QPRTs and CRTs are prohibited by statute
from including provisions allowing amendments.
11. Only one Probate Code section governs amendment of a trust.
12. The consent of all beneficiaries is needed to amend an irrevocable trust.
13. A guardian ad litem, appointed to represent the interests of a minor beneficiary,
can look only at that particular minor's interests and cannot consider the general family
benefit accruing the beneficiary's family.
14. The grantor's interest in creating the trust is always given the greatest weight by
the court in determining whether or not an amendment will be ordered.
15. If the settlor and all beneficiaries of an irrevocable trust consent to an
amendment, a court order is not necessarily required.
16. A trust with principal of less than $25,000 is presumed to be too small to
administer economically and may be terminated by the trustee without court order or
beneficiary consent.
17. Only the administrative provisions of a trust can be changed on a showing of
changed circumstances.
18. On a showing of good cause, a court may order that trusts be combined where
administration as a single trust will not defeat or substantially impair the
accomplishment of the trust purposes or the interests of the beneficiaries.
19. The statutes governing petitions to modify, terminate, combine or divide trusts
provide for a 30-day period for notice of hearing.
20. Notice and a copy of the petition to modify, terminate, combine or divide trusts
must be served on each person whose right, title or interest is affected by the provision.
CERTIFICATION
 This activity has been approved for Minimum
Continuing Legal Education credit by the State Bar of California in the amount of 1 hour.
The State Bar of California certifies that this
activity conforms to the standards for approved education activities prescribed by the
rules and regulations of the State Bar of California governing minimum continuing legal
education. |
