Can a Revocable Trust Be Converted into an Irrevocable Trust

[ojimon]

My question involves estate planning in the state of: Oregon

My widowed father has a revocable living trust. All of his assets (except the IRA) are in the trust. He and I are co-trustees. There is no other successor trustee.

My father is starting to experience short-term memory problems, but is still entirely competent to manage his life and affairs. While this is still the case, we want to take whatever steps we can to protect his assets from FUTURE catastrophic lapse in judgment on his part. We want to do this without requiring the future use of a conservatorship or guardianship. We would also like to maintain maximum flexibility/options in terms of Medicaid planning (yes, we do know about the current five-year lookback rule).

Our sense is a that an irrevocable trust might address all issues. The question is, can my father easily convert his current revocable trust to an irrevocable trust (possibly simply by resigning as co-trustee?) or must the new irrecovable trust be written from scratch?

Thanks in advance for helping us to answer this question. :-)

[Mr. Knowitall]

It's not a "conversion" - it would be an entirely new trust, with very different legal and tax consequences. If your father is mentally competent he should discuss his specific needs and goals with an estate planning lawyer. An irrevocable trust doesn't allow you to "maintain maximum flexibility/options" - it minimizes your options.