In an era of co-habitation, co-parenting, and good old-fashioned divorce, the identity of a client’s intended beneficiaries can be a moving target. Defining the class of beneficiaries to provide flexibility is especially important in irrevocable trusts. Trust decanting pursuant to §10-6.6 of the New York Estates, Powers and Trusts Law (EPTL) is not always desirable or possible.
This article suggests two alternatives for adapting an irrevocable trust to the client’s future needs: first, revising the definitions of “spouse” and “descendants,” and second, granting a “Selector” the power to add or remove beneficiaries. Sample language is provided.
