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<b><i>Pfannenstiehl</i></b> Reminds Practitioners to Plan Trusts Carefully
A recent Massachusetts case held that trust assets were part of the marital estate reachable by the non-spouse beneficiary in the action. Pfannenstiehl v. Pfannenstiehl, 88 Mass. App. Ct. 121 (2015), 37 N.E.3d 15. This case reminds practitioners of a number of important considerations in planning for trusts to minimize the risks of their being breached in a matrimonial action. Several planning suggestions on how practitioners might be able to mitigate these risks, even for existing trusts, are included in this article.
Trust Law
It is vital for matrimonial practitioners to understand that dramatic developments in trust law and trust-drafting practices make the analysis, planning opportunities, and steps quite different from what they may have been historically. While many of these aspects of modern trust planning were not reflected in the Pfannestiehl trust, they are relevant to many client situations, and may have also provided a better outcome to the husband/beneficiary in this case.
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