Practitioners should encourage all clients with existing irrevocable trusts to meet to review those trusts. Whether for marriage, divorce, tax planning (whatever the future law changes provide), general asset protection planning or other reasons, modifying old irrevocable trusts through decanting (or other means) might make improvements, or as in the Ferri v. Powell-Ferri case, save the trust assets. Ferri v. Powell-Ferri, 326 Conn. 438 (2017).
Timing is key, and it is important to try to avoid any taints of impropriety. To that end, it would be preferable, unlike in the Ferri case, to have the decanting completed well in advance of the divorce or other event that poses to attack the old trust. Practitioners should also address these issues when clients are entering into marriage and contemplating prenuptial agreements.
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