• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Scott P. Schomer Certified As Specialist In Estate Planning, Trust And Probate Law
    • Trust and Probate Litigation: Verdicts and Settlements
  • Services
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Family-Owned Businesses
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Power of Attorney
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
    • Trust, Probate and Estate Litigation
    • Young Families
  • Probate
    • Is Probate Always Necessary In California?
    • Probate & Estate Planning Savings Calculator
    • Probate Administration
    • Probate Code 850 Petitions
    • Probate Disputes
    • Probate In California
    • Probate Laws
    • Probate Litigation
    • Why Hire A Probate Attorney
  • Elder Law
    • Conservatorship
    • Coping with Alzheimer’s
    • Estate Planning
  • Resources
    • Elder Law
      • Elder Law & Medi-Cal Definitions
      • Elder Law Reports
    • Estate Planning
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Special Needs Planning Can Protect Benefits
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
      • Webinars
    • Frequently Asked Questions
      • Advance Health Care Directives
      • Asset Protection
      • California Adult Conservatorship
      • Estate Planning
      • Estate Planning & Remarriage
      • Frequently Asked Questions For Families Without An Estate Plan
      • In-Home Elder Care
      • IRA Inheritance Planning
      • IRA & SECURE Act
      • Irrevocable Trust
      • Last Will and Testament
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trust
      • Probate
      • Special Needs Planning
      • Trusts
      • Trust Administration
      • Wills
    • Newsletters
    • Pre Consultation Form
    • Presentations
    • Published Book
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Communities We Serve
    • Los Angeles County
      • Bellflower
      • Cerritos
      • El Segundo
        • El Segundo Probate Resources
      • Hawthorne
      • Inglewood
      • Long Beach
        • Long Beach Elder Resources
        • Long Beach Probate Resources
      • Manhattan Beach
      • Playa del Rey
      • Santa Monica
      • Westchester
        • Westchester Elder Resources
        • Westchester Probate Resources
    • Orange County
      • Anaheim
      • Buena Park
      • Cypress
      • Fountain Valley
      • Garden Grove
      • Huntington Beach
        • Huntington Beach Elder Resources
        • Huntington Beach Probate Resources
      • Los Alamitos
        • Los Alamitos Probate Resources
      • Rossmoor
      • Stanton
      • Seal Beach
      • Westminster
  • Contact Us
  • BLOG
  • Videos

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Connect With Us Today (310) 337-7696

Attend a Free Event
Home » Estate Planning » Can You Dissolve a Trust If Circumstances Change?

Can You Dissolve a Trust If Circumstances Change?

February 16, 2021Estate Planning

irrevocable trustSome people do not even consider the possibility of using a trust as an estate planning tool because they harbor a misconception. They think that you permanently surrender control of assets that you convey into a trust.

On the one hand, this is false, and on the other hand, it’s true. We will provide some clarity in this post.

Irrevocable Trusts

There is a legal concept called “incidents of ownership.” In layman’s terms, when you relinquish incidents of ownership, the assets are no longer in your name.

This can help you achieve certain objectives, and nursing home asset protection is one of them.

The majority of elders will need long-term care eventually, and paid care is very expensive. Medicare does not pay for custodial care, so you have to look elsewhere for support.

Medi-Cal will cover a stay in a nursing facility, and there is a Medi-Cal waiver program that will pay for in-home care. That’s the good news, but the bad news is that you can’t qualify if you have more than $2000 in countable assets.

As a response, you could convey resources into an income-only Medi-Cal trust. You can accept distributions of income that is earned by the trust, but you would not be able to access the principal. If and when you apply for Medi-Cal, the assets would not count.

These trusts are also used by people that are exposed to the estate tax. It is applicable on the portion of an estate that exceeds $11.7 million in 2021.

An irrevocable supplemental needs trust can be used to leave an inheritance to a loved one with a disability without disrupting eligibility for Medi-Cal and Supplemental Security Income. These are a handful of the most common reasons why these trusts are used, but there are others.

Changing an Irrevocable Trust

An irrevocable trust cannot be dissolved, but under some conditions, changes could be made. The trust could be written in a way that allows for specific modifications under certain limited circumstances.

A trust protector provision can be utilized to give the beneficiaries or the trustee the ability to engage an independent protector to examine the facts and make a determination on a proposed change.

You can alternately choose to give the trustee or the beneficiaries a power of appointment that would allow them to make certain changes that would be specified in the trust agreement.

Revocable Living Trust

In addition to irrevocable trusts, there is also the revocable living trust. As the name would indicate, you can in fact revoke or dissolve this type of trust, and it goes into effect while you are still living.

Because you retain incidents of ownership, the assets would count if you apply for Medicaid, and they would be part of your estate. They would also be available to litigants if you are the target of a lawsuit.

This being stated, there are some profound benefits that make a living trust more appealing than a simple will as an asset transfer vehicle.

When you have a living trust, the distributions that are made by the trustee after your passing would not be subject to probate. This is an expensive, time-consuming legal process that strips your family of privacy because it is a public proceeding.

You can include spendthrift protections when you have a living trust. The assets would be protected from the beneficiary’s creditors, and you can instruct the trustee to provide limited, measured distributions over an extended period of time.

Since the assets are consolidated, the administration is streamlined, and you can use a pour-over will to direct property that was in your direct personal possession at the time of your death into the trust.

Schedule a Consultation Today!

As you can see, there are different approaches that can be taken, and the right way to proceed will depend on the situation. Personalized attention is key, and this is what you will receive when you choose our firm.

You can schedule a consultation appointment right now if you give us a call at 310-337-7696. There is also a contact form on this site you can use to send us a message.

 

 

  • Author
  • Recent Posts
Scott Schomer, Estate Planning Attorney
Scott Schomer, Estate Planning Attorney
A graduate of Boston University School of Law, Scott P. Schomer is a frequent lecturer on estate planning and elder law issues, having discussed these important issues on local and national television. A seasoned courtroom advocate, Scott has obtained combined judgments and verdicts in excess of twenty-five million dollars for his clients. Scott has served as a member of the Los Angeles Superior Court Probate Volunteer Panel (PVP Attorney), Probate Settlement Panel and a Judge Pro Tempore. Scott's expertise has been recognized by his peers with such accolades as a life-time membership in the Multi-Million Dollar Advocates Forum, the Five Star Wealth Manager designation, and repeated nominations as California Super Lawyer.
Scott Schomer, Estate Planning Attorney
Latest posts by Scott Schomer, Estate Planning Attorney (see all)
  • What Does it Cost to Probate an Estate in California? - January 24, 2023
  • What Is Missing in Your Estate Plan? - January 22, 2023
  • Common Probate Mistakes and How to Avoid Making Them - January 19, 2023

Other Articles You May Find Useful

Los Angeles estate planning attorneys
What Is Missing in Your Estate Plan?
Los Angeles estate planning attorneys
What Is the Uniform Transfer to Minors Act?
Abogados de planificación patrimonial de Los Ángeles
Planificación Patrimonial para Parejas Sin Hijos
Now That Mid-Terms Are Over, Let’s Talk Taxes
Los Angeles estate planning attorneys
Estate Planning for Couples Without Children
Common Mistakes in Estate Planning – Part V

Primary Sidebar

Schomer Law Group, Los Angeles Estate Planning, Probate, and Elder Law Attorneys

Schomer Law Group

FREE Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Testimonials

Client Review
July 29, 2020
    

We need to update our Living Trust and attended Schomer Law Group’s seminar. Afterwards we made an appointment and were impressed by the attention Scott Schomer and Liran Aliav gave to our case answering all questions and making suggestions how to minimize the estate tax. All the office staff is very friendly and we highly recommend Schomer Law Group.

Frank & Jutta R
Client Review
July 29, 2020
    

Mr. Schomer does an amazing job at explaining all the intricacies of establishing a trust. He and his team help you every step of the way so you always know what to expect and what you are preparing for. Best education you can get and the best gift you can give your family.

Paula M.
Client Review
July 29, 2020
    

We put off getting a trust for years. After attending a seminar with Scott Schomer we realized that the time had come to get a trust. We were given very good reasons for why we should get a trust. No pressure, just the plain facts. We are very relieved and happy to finally get our trust. Scott and Cesar were very knowledgeable, helpful and listened to our ideas of what we had to say. Any questions that we have now and in the future they are available to assist us to solve them. I recommend the Schomer Law Group and I wish we knew about them years ago.

Phillip G.
Client Review
July 29, 2020
    

When you’re presented with an invitation to attend in a mailer, you may have reservations, this was a truly gift!! My wife and I were educated and guided through the process of creating a family trust.
Both of our parents had attorney’s that “worked” with wills/trusts, but came up short. Fortunately, the Schomer Law Group was there! This is a group of attorney’s that only specialize in estate planning, law, and financial advice, so you know you’re getting expert and personalized advice. This is the best money we’ve ever spent!! Thank you!

Bob L.
Client Review
July 29, 2020
    

We knew we had to update our 10 year old ( 20 page ) trust. After several detailed meetings, Liran and Cesar produced a large ( 300 pages + ) highly detailed trust document that we have used to make sure our family estate is well managed and clearly understood.
They were all very helpful in answering myriad questions and explaining all the various options…

We would strongly recommend the Schomer Law Group to anyone with an estate of even modest means, to assure proper planning…

Bob S.
Client Review
July 29, 2020
    

We had contemplated updating our will and starting a trust for a number of years. After attending a talk by Scott Schomer we realized we were long overdue and the potential downside of not having our affairs in order was significant. Scott and his excellent team made the process simple and seamless. They were great listeners, addressed all our concerns and even pulled and processed all the paperwork from our financial institutions. If you are looking for assistance with estate planning, wills and trusts, we highly recommend Schomer Law Group.

Robert F.
Client Review
July 29, 2020
    

Very competent & informative – friendly atmosphere – ready to answer the most mundane questions – relaxed.

Joan S.
Client Review
July 29, 2020
    

Mr. Schomer was excellent in getting our family trust and estate affairs in order. My husband and I had put off doing this and Scott really made the process easy! He is very passionate in making sure his clients get all that they need and we really appreciated it. I would highly recommend him and look forward to the many years he will be available to assist our family.

Kim

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest

Subscribe To Our Blog

Sign up using the form below to get our latest estate planning updates!
  • This field is for validation purposes and should be left unchanged.

Office Address

El Segundo
2155 Campus Drive
Suite 250,
El Segundo, CA 90245
Phone: (310) 337-7696
Fax: 310-337-1277

See Larger Map Get Directions

Office Hours

Monday9:00 AM - 6:00 PM
Tuesday9:00 AM - 6:00 PM
Wednesday9:00 AM - 6:00 PM
Thursday9:00 AM - 6:00 PM
Friday9:00 AM - 6:00 PM

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Schomer Law Group

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest

footer-logo
© 2023 American Academy of Estate Planning Attorneys, Inc.

Schomer Law Group

Attorney Advertisement.

© 2023 American Academy of Estate Planning Attorneys, Inc.