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When Decanting Can be Used to Amend an Irrevocable Trust in New Jersey

When Decanting Can be Used to Amend an Irrevocable Trust in New Jersey

Author: Jeffrey R. PittardDate: March 10, 2021

Despite what the name suggests, it is possible to modify an irrevocable trust. One of the options is known as “decanting,” where the trustee transfers some or all of the principal and undistributed income of the trust to another trust for the benefit of the beneficiary.

As the name suggests, when transferring assets to an irrevocable trust, the grantor relinquishes the right to amend or revoke the terms of the trust in exchange for certain legal and tax benefits. In contrast, a revocable trust allows the grantor to revoke it or change the terms at any time.

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