Trust Amendment or Trust Restatement?

Trust Amendment or Trust Restatement? (1)

What is a Trust Amendment?  What is a Trust Restatement?

 

 

So what is an Amendment to a Trust?

 

What is a Trust amendment?  An amendment to a Trust is simply where one makes a change of a provision or provisions to their Trust.  This may include where the Trustor wants to add a beneficiary like where there is a new grandchild to the family.  It can also include changing a gift to a beneficiary, removing a beneficiary, or changing how the beneficiary is to receive the gift.  There is one requirement to amending a Trust and that is that the Trust must allow such changes.  Revocable Living Trusts, or sometimes Revocable Trusts, or Living Trusts are by design amendable.  Irrevocable Trusts such as ILIT’s (Irrevocable Life Insurance Trusts), or Special Needs Trusts are just that – irrevocable.  These kinds of Trusts are used in specific circumstances, and you can read about them in my blog.

  

What is a Restatement of Trust?

 

A Restatement of Trust is basically an amendment of the entire Trust, even if it is just to change one provision.  This is better than re-drafting the entire Living Trust especially if the Trust is “funded”.  If the Trust is funded, you don’t need to create a new deed to the house and notarize and record it with the city.  Nor do you need to change any account that are held in the name of the Trust. 

 

Why do some Attorneys prefer a Restatement to an Amendment?

 

The answer to this question lies in the answer to another question – who drafted the original Trust?  Normally if you go to a new attorney, they will prefer to do a restatement.  You see, the last attorney to make a change to a Trust takes all of the responsibility for any defects in the Trust document.  Even if the new attorney only changes one word.  Now, the new attorney can read and analyze the entire document, make any updates required, make the changes you have requested, and bill for the time.  Or, simply restate the Trust with your changes and likely save time and money for you.

 

If you need changes to your existing plan, please give me a call.  I offer 100% attorney advised and prepared estate plans for a reasonable fee.

 

Please see my Blog for more discussion of various aspects of Estate Planning.

 

Please feel free to give me a call and we can establish your Revocable Living Trust or other Estate Planning goals today.  If you have specific estate planning objectives, I can help create solutions. 

 

See lots of estate planning information on my website at: www.myestate-plan.com

 

Thanks for reading my blog.

 

William Daniel Powell

619-980-2297

This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

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This document is for informational purposes only.  Nothing in this is to be considered legal advice.  Nothing in this shall create an attorney/client relationship, nor shall it create a confidential relationship.  If you need legal advice (in California), feel free to contact me or someone licensed to practice in your jurisdiction.  I assume no liability or responsibility for actions taken, or not taken, as a result of reading this information

Also, please remember that I speak in generalities in my blog and my website. There are so many different factors that can contribute and completely change the outcome that it would be impractical to discuss all of them here.

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