[WSBAPT] Authority for Irrevocable Credit Trust

[Jen Doehne]

Hi Everyone-
I am working on a very contentious case where the main issue is a Credit Trust whereby the surviving spouse grantor failed to fund it and attempted to make several amendments to it (such as changing beneficiaries). I have completed hours of research and have found many cases whereby the court states in dicta that the Credit Trust is irrevocable and must be funded but I have found no statutory backing.

The Credit Trust itself says that "Each Grantor while living reserves the right as to the assets transferred to, attributable to, or derived from, property contributed by such Grantor. . ." and further that "Trustee shall allocate to the Credit Trust an amount of property from the decedent's one half interest in the community property of the Trust Estate (and if insufficient, from the Decedent's separate property of the Trust Estate) equal to the minimum otherwise unused pecuniary amount necessary to exhaust the maximum unified credit . . ."

So far the wording of the Trust itself is my best argument that the Credit Trust is irrevocable and must be funded at the first spouse's death. Does anyone know of any statutory or actual case law that may shed light on this?

Thank you so much! Best wishes,

Jen
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