current situation will affect the trust as a whole. As our client, you are entitled to a free review of your plan every three years, and we highly encourage you to take advantage of this perk.
Location.
If you have recently moved to another state, the laws regarding wills, trusts and inheritance may be different than those where the trust was created. If the trust is not recognized, your assets may go through probate and be distributed in accordance with state intestacy laws, as if you never had a trust at all
Property.
The purchase of a home or real estate usually requires an amendment to your revocable living trust. Any property that is not included in the trust will have to go through probate, potentially costing your heirs a significant amount in taxes and attorney fees. For this reason, it is vital that you speak with us to ensure your new acquisitions are properly transferred into the trust.
How to Make Changes to Your Living Trust
Making changes to your living trust can be done without having to go to court. However, there are multiple methods that can be used to modify a trust, so our estate planning attorneys can advise you on which is the best option for your situation.
There are three ways to change an existing living trust:
Amendment.
If you only have one or two changes to make, an amendment is likely the best choice. This is an additional document that outlines the changes you are making, and the rest of the trust remains unaffected. An amendment should include the name of the trust, the date, the change, and whether the change is an addition or whether it replaces something in the original trust. The amendment form should be attached to the original trust document.
Restatement.
Numerous amendments to your trust can make things confusing for your successor trustee. A restatement does not revoke the original trust, but allows it to be rewritten as a new document to reflect the changes (instead of attaching multiple amendments). The new document states that the original trust is still in place, but changes have been made to better reflect your current wishes.
Revocation.
Revocation may be used when you need to make significant changes to the original trust, or want to dissolve the trust completely and keep the property in your name. You will need to sign a revocation of the original trust, after which all property and assets will revert back to you. If you want to create a new trust, you will have to start at the beginning with original documents and go through the process of transferring property and assets into it.
It is worth noting that the property in your trust will be distributed immediately upon your passing, so it’s important to make any updates as soon as possible. Whether you already have a living trust or need to create a new one, our experienced legal team at The Law Firm of Kavesh, Minor & Otis, Inc. can help you achieve your goals and give your family peace of mind. Contact us today to get started!
