The Listen to Lawrence Letter: Changing Beneficiaries

CLIENT QUESTION:

You created an irrevocable Medicaid trust for me 7 years ago. Can I make changes to the beneficiaries in the Trust? In the Trust, Article VII, it states that no modifications can be made to any terms of the Trust. Please advise.

MY RESPONSE:

YES! While the trust generally says that you cannot modify the language in the trust, the trust language also says that you have retained what is called a “power of appointment.” A power of appointment is a clause in the trust that says you have retained the right to change the trust beneficiaries. You don’t even have to have a good reason. For example, if your son forgets your birthday…CUT HIM OUT! You can add or subtract beneficiaries at any time, although usually limited to your children and grandchildren (issue).

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