Does the trust have a trust protector? Does the trust control all of the decedent's property?

Reforming the trust to allow outright distributions may be a good idea if it becomes uneconomical, inefficient or uncessary to hold assets in the credit shelter trust. Reformation of the trust may or may not be allowed by the court. It depends on the controlling law and the governing instrument.

Its likely that we will see this issue arise more often as there are many A - B type estate plans out there and many estates have lost considerable value as real estate and financial markets have continued to recessess lately, thus, potentially forcing an overfunding of the credit shelter trust. So, many trusts without certain operative language, may require probate court reformation.

Good Luck.<br><br>Post edited by: steve, at: 2008/03/04 00:34