One way that inflexible trusts hamper beneficiaries is when children and grandchildren move to other states. If the trust were drafted in New York without the ability to relocate it to another state (a procedure know as redomiciliation), for example, all of the beneficiaries living on the West Coast would need to travel to the Empire State for meetings with the trustees. To migrate that New York trust to California could prove very expensive and legally complex. The prospect can avoid the issue by adding language that permits the trust to redomicile and allowing the trustee to conform to the laws of the state of relocation.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
