Boyd & Boyd, P.C. – 2025 Trust Amendment Features
Trust Amendment Features: This Is Not a Minor Edit.
The 2025 Amendment may be some of the most significant enhancements we have made to our trust design since we introduced the Personal Asset TrustTM. These changes improve how your trust protects your wealth, your family, and your legacy.
If your trust was signed before 2025, you need to act now to ensure your plan reflects today’s legal landscape.
What the 2025 Amendment Adds
- Beneficiary Language Revised to Address Jones v. Jones
In the Massachusetts case Jones v. Jones, the court ruled that a beneficiary’s access to trust funds—even if discretionary—could be considered in divorce proceedings when the beneficiary is the sole present interest beneficiary of the trust. This puts inherited assets at risk in a divorce if the trust document does not make it clear that there are multiple-concurrent beneficiaries.
The 2025 Amendment updates Article V to provide:
- Expands the beneficiaries of a PAT to include other concurrent discretionary beneficiaries, even if the primary beneficiary is not married or has no descendants.
- More clearly defined discretionary standards
This update can protect up to 50% of a beneficiary’s inheritance in a Massachusetts divorce.
- Withdrawal Protector Provisions
Prevents your children (or other beneficiaries) from withdrawing their inheritance at the wrong time—especially during:
- Divorce
- Lawsuits
- Periods of financial instability
Instead of forcing distributions, the Withdrawal Protector helps ensure funds are used for the benefit of the beneficiary, not seized by others. This protection can preserve $250,000–$1,000,000 or more depending on the size of the trust and exposure risk.
- Required Marital Agreement Clause
To access significant distributions, a married beneficiary must have a valid prenuptial or postnuptial agreement. This clause was added to directly combat the risks exposed in Jones v. Jones and similar Massachusetts divorce rulings.
This helps ensure that inherited assets:
- Remain separate property
- Stay protected from future ex-spouses
- Do not affect alimony or support calculations
This can shield hundreds of thousands in family wealth from being lost through divorce.
- Substance Abuse & Risk Behavior Provisions
Trustees may limit or delay distributions if a beneficiary:
- Struggles with addiction
- Engages in illegal or irresponsible conduct
- Fails to show financial maturity
This can prevent a total loss of inheritance through reckless behavior, protecting family values and preserving intent.
- Trustee Discretion Language Clarified
“Sole and absolute discretion” is now clearly defined to limit interference and increase protection against legal challenges.
Helps prevent litigation over trustee decisions, potentially saving $25,000–$75,000 in legal fees.
- Options Trading Clause
Allows your trustee to use options as part of a diversified investment strategy (when appropriate), including tools like collars, straddles, and spreads—always with fiduciary safeguards. Options are increasingly being used as a means to offset risk from market volatility or to provide an income stream.
Potential value: thousands to tens of thousands in long-term portfolio growth or hedging gains.
- Corporate Co-Trustee Options
New provisions allow families to appoint licensed trust companies more easily, ensuring professionalism and continuity without loss of personal control.
Reduces risk of mismanagement, especially with aging or ill family members.
- Designated Representative System
Lets one trusted person receive notices and act on behalf of minor or incapacitated beneficiaries, minimizing cost and hassle. This can protect against an in-law (acting as the guardian for a grandchild) from attempting to assert authority over the application of the minor’s beneficial interests or making excessive demands for information from the trustee.
Estimated savings: $5,000–$15,000 in reduced reporting burdens and court filings.
- Trustee Right to Obtain Counsel
Encourages trustees to work with professionals to ensure compliance and better serve the family’s long-term interests. May be used to force a trustee to get and listen to counsel.
Avoids trustee liability and administration mistakes, reducing the risk of litigation or IRS penalties.
- Scrivener Protector Clause
Gives Boyd & Boyd, P.C. limited authority to make non-taxable technical corrections to your trust after your death—avoiding court, conflict, and cost.
Prevents thousands in legal fees.
- Article XIX – Dispute Resolution
Introduces structured resolution processes like:
- Good Faith Negotiation
- Trust Protector arbitration
- King Solomon Committee (Trust Advisors)
- Shotgun Buy-Sell mechanism for inherited business or property interests
These tools can prevent inheritance-related lawsuits, which often cost $25,000–$100,000 or more to resolve.
Why These Changes Matter
Legal Protection: Massachusetts law has changed. Divorce and creditor risks have increased. Without these new provisions, your family’s inheritance could be vulnerable.
Tax Efficiency: The amendment allows for better tax positioning, especially with S-corp shares and income shifting. Failure to update could cost your heirs thousands.
Conflict Reduction: Disputes among siblings or trustees are more common than ever. These new tools resolve disputes without court involvement, protecting relationships and reducing costs and shifting costs on to the misbehaving party where possible.
Trustee Empowerment: Your trustee needs tools to act wisely. This amendment ensures they have discretion, guidance, and authority to make sound decisions.
