Can an Irrevocable Trust Be Changed? (Changing Ownership from Revocable Trusts)

A common question we encounter in estate planning revolves around flexibility: "Can an irrevocable trust be changed?"

While the nature of an irrevocable trust is rigid, there is significant flexibility when it comes to creating one using assets you already own. Specifically, many clients ask if they can change ownership from a revocable trust to an irrevocable trust at any time.

The short answer is yes. Because a revocable trust allows you to maintain control of your assets and essentially "do whatever you want with them," you have the power to move those assets.

Here is what you need to know about making this change and ensuring your assets are properly transferred.

Changing Ownership: Revocable to Irrevocable

You can take assets currently held in a revocable trust and transfer them into an irrevocable trust. This is often done for asset protection or long-term planning purposes.

Because the revocable trust is designed for your control, you have the authority to:

1. Sell assets directly from the revocable trust.

2. Take assets out of the revocable trust.

3. Put assets into an irrevocable trust.

However, simply deciding to make this change isn't enough. You cannot just "say" it has been done; you must execute the transfer legally.

Do Assets Automatically Transfer?

This is the most critical misunderstanding in estate planning. No, assets do not automatically transfer.

There is no "magic way" to simply state in an irrevocable trust document that it now owns your assets. Even if you have the trust documents drawn up, the trust is essentially an empty bucket until you fund it.

As we often advise, you cannot just state somewhere that the asset is in the trust and assume it is protected. That is not how it works. You must take the actual step of transferring the asset.

How to Properly Transfer Assets

To ensure the "change" in ownership is valid, the method of transfer depends entirely on the type of asset:

• Real Estate: You must execute a new deed. The deed must convey the property from the revocable trust to the irrevocable trust.

• Bank Accounts: If an account is titled in the revocable trust, you must retitle it into the name of the irrevocable trust.

• Assignable Assets: Some assets can be assigned from one trust to the other using an assignment document.

Whether the assets are coming from another trust or are personally owned, they must be:

• Titled under the name of the new trust.

• Listed with the trust as a beneficiary.

• Assigned or otherwise legally transferred.

The Critical Step: Transferring Assets to Your Trust

If you are asking, "Can an irrevocable trust be changed?" in the context of moving your assets into one, the answer is yes—but it requires active participation. You must physically or legally move the assets for the trust to be effective.

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