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How do I change a revocable deed of trust to irrevocable?

How do I change a revocable deed of trust to irrevocable?

Full question:

Shortly before his death my attorney set up a deed of trust (revocable) ('not irrevocable' wording in the document) with him as trustee, my cousin as beneficiary, I am the grantor. Now that he has died I want to set up a deed that is irrevocable changing only the revocable wording to irrevocable, with the same beneficiary. I will find my own new trustee. I need cook book style steps on what do I do? Step by step as a layman and what forms will I need to do these steps. The reason I am doing it myself is that the land is recreational land in Hudspeth County, Texas and not worth much at this time. The land is in Hudspeth...my deceased attorney and I were/are living in Cameron County, Texas. I know I could simply transfer the deed outright to my cousin but her mother just died and i don't want to saddle her with legal responsibility and tax issues. Please advise. There is no trust agreement just a 'deed of trust' that is 'not irrevocable' at this time...my cousin is like a sister and rock solid.

Category: Real Property
Subcategory: Deeds
Date: 04/07/2025
State: Texas

Answer:

Typically, a trustee conveys a deed of trust. While individuals can serve as trustees, it’s often better to use a company to avoid issues if an individual trustee dies or becomes incapacitated. If the original trustee has died and there’s no provision for a successor in the deed, you may need to petition the court to appoint a new trustee. After that, a new deed of trust can be prepared. You can modify a revocable deed of trust, but you cannot enlarge the trustee's duties without their consent. Since your deed is revocable, you can change it to irrevocable by creating a new document that states this clearly. For Texas, relevant statutes include: - § 113.083 PROP. (Appointment of Successor Trustee) - § 112.051 PROP. (Revocation, Modification, or Amendment by Settlor) It's advisable to consult a local attorney to ensure all details are handled correctly. Users can search for state-specific legal templates at .

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens when the grantor of an irrevocable trust dies?

When the grantor of an irrevocable trust dies, the trust typically remains in effect and continues to manage the assets according to its terms. The beneficiaries will receive the benefits as outlined in the trust document. Unlike revocable trusts, irrevocable trusts do not become part of the grantor's estate and are not subject to probate. The trust's assets are usually protected from creditors and may have tax implications for the beneficiaries. It's advisable to consult with a legal professional for specific guidance.

Does a revocable trust turn irrevocable upon death?

Yes, a revocable trust typically becomes irrevocable upon the death of the grantor. This means that the terms of the trust cannot be changed, and the trust will operate according to its established provisions. The assets in the trust will be distributed to the beneficiaries as specified in the trust document, and the trust will no longer be under the grantor's control. It's important to review the trust document for specific terms and conditions.

What is the new rule on irrevocable trusts?

The rules governing irrevocable trusts can vary by state and may change over time. Generally, irrevocable trusts cannot be modified or revoked by the grantor once established. Recent trends may involve changes in tax laws or asset protection strategies. It's essential to stay informed about any updates in state laws or regulations regarding irrevocable trusts. Consulting with a legal expert can provide clarity on current rules and best practices.

Does an irrevocable trust get a step-up in basis when the grantor dies?

Typically, an irrevocable trust does not receive a step-up in basis for tax purposes when the grantor dies, as the assets are no longer part of the grantor's estate. However, if the trust is structured in a certain way, there may be exceptions. It's crucial to consult a tax advisor or attorney to understand the specific implications and any potential tax benefits related to the assets held in the trust.

Who holds the real power in a trust: the trustee or the beneficiary?

In a trust, the trustee holds the legal power and responsibility to manage the trust assets according to the trust document. The trustee must act in the best interests of the beneficiaries, who hold the beneficial interest in the trust. While the trustee makes decisions about the management and distribution of the assets, the beneficiaries have rights to the benefits specified in the trust. This relationship is governed by fiduciary duties.

What is the step-up at death of grantor in irrevocable trust?

The step-up in basis refers to the adjustment of the asset's value for tax purposes when the grantor dies. Generally, assets in an irrevocable trust do not receive a step-up in basis, as they are no longer part of the grantor's estate. However, specific circumstances may allow for such adjustments, depending on the trust's structure and applicable laws. It's advisable to consult a tax professional for detailed guidance.

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