Many individuals establish a trust with the help of a Sanford trusts and estates attorney to effectuate important goals. They may want to ensure that the next generation has funds available for their basic needs and education. They may reserve funds for a child with special needs to use. They may establish a trust for a charitable purpose. However, in some cases a Sanford trusts and estates attorney may need to be consulted because a modification to an existing trust may need to be made.
North Carolina allows trust modifications for a variety of reasons. A trust can be modified due to unanticipated circumstances or because the trust is not being administered effectively. If a modification or termination of the trust would better effectuate the purposes of the trust, the court can make such an order. If a trust has a value under $50,000, the trustee can move to terminate the trust if the value in the trust does not justify the cost of administration. If there were mistakes made in the construction of the trust, these mistakes can be remedied through a modification. Charitable trusts can also be modified.
Depending on the circumstances, a trustee, beneficiary or the settlor can make modifications to the trust in question. Many modifications require that a proceeding be brought in order for the court to approve or disapprove a modification or termination of the trust. The court may also have the power to remove the named trustee and appoint a different trustee. A trust may also provide specific information regarding other ways to modify the trust and the grounds necessary to make such changes. A trusts and estates attorney can explain what the options are in a given situation.