Unlimited Duration Trusts - Minnesota CLE

Summary of Popular Methods for
Changing Situs of an Existing Dynasty
Trust:
• Trust document:
– Ability to change and/or add trustees
– Change of situs language
– Change of law language
– Trust Protector provisions (and/or state statute)
– Decanting provisions (and/or state statute/common law)
• Change of situs and then reformation/modification (usually court involvement)
– Modification:
• “Carry out the material purpose of the trust had the grantor known”
– Reformation:
• Mistake of law or fact
• “What was actually intended”
• Change of situs and then restatement (usually court involvement)
– Second step to reformation/modification of administrative provisions
– Restate construction/interpretation and validity
• Decanting (no court involvement)
– Decanting statute:
• Client’s resident state
• Name trustee in state with statute and decant
– Optional: Court blessed decant – Not available in all states
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