Trust Modification and Termination

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Attorneys

Anne W. Coventry

Eric P. Bacaj

Nancy G. Fax

Marcia C. Fidis

Morriah H. Horani

N. Alfred (Al) Pasternak

Stephanie Perry

Linda J. Ravdin

James D. Saintvil

Christina K. Scopin

Micah G. Snitzer

Adam P. Swaim

Vicki Viramontes-LaFree

Anne (Jan) W. White

Probate Paralegals

Sharon L. Coop

Anbar A. Hassan

Ann M. Potts

Karen L. Williams

Paralegals

Kadie M. Marks

Marla V. Wolff

Administrative Staff

Mary A. Nelson

Nicole M. Ricketts

Nicole A. Ryder

Ideally a trust will be drafted to accommodate a wide range of circumstances, but occasionally it may need to be modified in order to meet the needs of the beneficiaries.  We have experience in both the modification and termination of trusts that no longer serve the beneficiaries’ needs or circumstances.

Situations that may require court approval for modification include:

  • changing terms to allow the trustee to draw upon principal to meet the goal of the trust
  • adding a co-trustee
  • “trust decanting,” where the assets are transferred to a new trust with modified provisions.

Recognition

  • Super Lawyers – Rising Stars – Estate & Trust Litigation (Maryland, 2016)

Blog Posts

July 26, 2018

OPINION: Electronic Wills? Maybe, But Not Like This

B22-0169, the Electronic Signature Authorization Act of 2017, is pending before the DC Council, and it is dreadful.  The Uniform Law Commission (ULC), relevant sections of the DC Bar, and a number of DC Fellows of the American College of Trust and Estate Counsel (ACTEC) have submitted, formally or informally, written opposition to the bill.  We have it on good authority that this bill is unlikely to pass, and we hope that is the case.

Are electronic wills coming?  Of course they are.  Last year in Australia, an unsent text message was accepted for probate as someone’s last will and testament.  (Unsent!  With an emoji in it!)  In July of this year, the Michigan Court of Appeals affirmed a trial court decision to accept for… MORE >

July 26, 2018

Alimony Ends When Payor Spouse Retires . . . Or Does It?

Family lawyers are increasingly hearing from divorced clients who are getting ready to retire or have retired and who have a spousal support obligation or a right to receive support under a court order.  A court order may result from a trial or as part of a settlement agreement adopted by a court in the judgment of divorce.  Some payors think alimony payments automatically end at retirement, or that a court will decide to terminate payments at retirement as a matter of course, but this is not necessarily so.

Court-ordered spousal support terminates automatically only on the death of either party or—in Maryland and Virginia, but not the District—upon remarriage of the recipient.  When a court orders indefinite spousal support, i.e., support without a predetermined… MORE >

April 9, 2018

Premarital Agreements, Alimony, and the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act has eliminated the tax treatment of alimony that has been in place for more than 75 years.  Under the old law, alimony is deductible from the income of the payor and includible in the income of the recipient, provided the parties comply with the specific requirements of the Internal Revenue Code (I.R.C.).  Effective January 1, 2019, under the Tax Cuts and Jobs Act, parties will no longer have the option to enter into an agreement for taxable alimony nor will court-ordered alimony be deductible from the payor’s income and includible in the recipient’s income.  Some alimony obligations created prior to January 1, 2019, may receive alimony tax treatment under the old law; others may not.

An existing premarital agreement… MORE >

April 2, 2018

Impact of the 2017 Tax Cuts and Jobs Act on Divorcing Families

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In December 2017, Congress rushed to pass the Tax Cuts and Jobs Act:  a 503-page document that drastically alters several of the popular tax credits and deductions around which many divorcing families structure their financial planning.  This first major tax reform in decades affects taxes beginning in 2018 and will have a significant impact on divorcing families.  Family lawyers are still working on understanding the nuances of the changes and figuring out how to settle cases while some of the uncertainties in the application of the new law are being resolved by the Treasury Department.

Even the most amicable divorce can be expensive; it simply costs more to maintain two households.  Through effective use of the tax code, however, family law attorneys, often working alongside… MORE >

March 9, 2018

Tax Cuts and Jobs Act: Impact on Estate and Gift Planning

The Tax Cuts and Jobs Act (the “Act”), signed into law at the end of December, includes major changes to the Internal Revenue Code.  The Act is the most sweeping tax legislation to be enacted in decades and affects nearly all American taxpayers.  Under the Act, the federal estate, generation-skipping transfer (GST) and gift tax exemption amounts have increased dramatically.

The estate tax exemption amount is the amount that an individual can pass at death to anyone without incurring estate tax, and the GST tax exemption amount is the amount that an individual can pass to grandchildren and more remote descendants without incurring GST tax.  In addition to the estate tax exemption, there is the unlimited marital deduction, which permits an individual to transfer an… MORE >

January 30, 2018

State Estate and Inheritance Taxes after the Tax Cuts and Jobs Act

The doubling of the federal estate tax exemption under the Tax Cuts and Jobs Act has moved many wealthy Americans away from the impact of the federal estate tax.  However, state estate taxes and inheritance taxes remain a factor in estate planning for residents of a number of states, including Maryland and the District of Columbia.  Moreover, a state level estate or inheritance tax may be imposed on real estate located in a state with a tax even when the decedent resides elsewhere.

Currently, only a handful of jurisdictions have an estate tax.  These include the District of Columbia and Maryland as well as Connecticut, Hawaii, Illinois, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington.  The District of Columbia’s estate tax exemption… MORE >

January 29, 2018

The District of Columbia Death with Dignity Act

The District of Columbia Death with Dignity Act allows an adult D.C. resident who is terminally ill (i.e., medically confirmed to have less than six months to live) to request medication to voluntarily end his or her life.

In order for a patient to participate in the Death with Dignity program, the following requirements must be met:

  • The patient must be capable of communicating health care decisions to health care providers on his or her own; an agent may not make the request on behalf of a patient.
  • The patient must make two oral requests (separated by at least 15 days) and one written request to an attending physician.
  • The written request requires two witnesses, one of whom cannot be a relative, someone entitled… MORE >
October 18, 2017

Changes to Maryland Law Increase Ease, Efficiency, and Consistency in Family Law

The Maryland General Assembly recently took several actions impacting domestic relations that will increase ease, efficiency, and consistency for those navigating the family court system.

Domestic Violence Orders Admissible in Maryland Divorce Suits

Protective orders (a form of domestic violence order) are designed to end and prevent abuse between family or household members.  Current or former spouses, people who have lived together in an intimate relationship for at least 90 days during the past year, people who have been in a sexual relationship within the past year, people who share children together, people who are in a caretaker-vulnerable adult relationship, and family members can file for a protective order 24 hours a day in Maryland.  In a protective order, a judge can order the abuser… MORE >

October 17, 2017

“To my descendants, per stirpes…” (or… How do we pass the Packers’ tickets to our grandkids?)

Years ago, I described to a close friend (let’s call her Cathy) the difference between a division among descendants per stirpes and a division among the same descendants per capita at each generation.  In the midst of my explanation, Cathy suddenly exclaimed, “Oh!  You mean like the Packers’ tickets?”  This was a Eureka! moment; yes, it’s exactly like the Packers’ tickets.

One very important lesson I learned attending college in Wisconsin is that Packers’ tickets are a sacred thing.  The population of Green Bay is 105,000.  After recent expansions, Lambeau Field now seats 81,435, but season tickets are still very hard to come by.  For many, the surest way to get them is to inherit them.

Back in the days of Bart Starr and Vince… MORE >

October 10, 2017

Life Insurance and Divorce – Virginia Legislature Extends Authority of Divorce Courts Over Life Insurance Policies of Spousal Support Obligors

Spousal support is an important element of many divorces.  When couples have been married for a long time, have supported each other’s careers, and have made sacrifices in their own lives in order to provide that support, alimony is often essential to afford former spouses financial security as they rebuild their lives as individuals outside of marriage.

A major concern those receiving support may have is: “what happens if my former spouse dies?” In Maryland, D.C., and Virginia, spousal support obligations terminate upon the death of either party.  When married, life insurance helps to protect people from the financial devastation that can result from losing a spouse.  Divorce can affect life insurance beneficiary designations.  In Virginia, divorce automatically divests a former spouse of any interest… MORE >