Trust Amendment: How and When to Modify Your Trust
Trusts play a crucial role in estate planning, ensuring that your assets are distributed according to your wishes and your loved ones are taken care of after your passing.
However, your individual circumstances can change over time, and what may have been appropriate when you first created a trust may not be suitable in the future.
Trust amendments can help you modify your trust to reflect these changes
What Is a Trust Amendment?
A trust amendment is a legal document that modifies the terms of an existing trust. Trust amendments can help you:
- Add or remove beneficiaries
- Change the distribution of assets
- Make any other necessary changes to the trust
For a trust amendment to be valid, it must comply with the requirements outlined in the original trust.
How to Get a Trust Amendment
Getting a trust amendment is a relatively simple process. You’ll need to work with an experienced attorney to draft the amendment, which must be signed and notarized.
Once the amendment is complete, it should be kept with the original trust document.
Can You Change a Living Trust?
Yes, a living trust can be changed. The person who created the trust, also known as the grantor, has the power to amend or revoke the trust during their lifetime.
To make changes to a living trust, you must follow the procedures outlined in the trust document. Typically, this involves creating a written amendment or restatement of the trust, which must be signed and witnessed in accordance with state law.
Do I Need an Attorney to Make a Trust Amendment?
Although it’s not legally required to have an attorney to initiate a trust amendment, it’s highly recommended to ensure that the amendment is properly drafted and executed.
An attorney can also help you understand the implications of the amendment on your trust and estate plan as a whole. Additionally, your attorney will advise you on any potential complications that may arise from the amendment.
Ultimately, the decision to hire an attorney who specializes in trust administration and estate planning will depend on your unique circumstances and the complexity of your trust and estate plan.
Why It’s Important to Review and Update Your Trust Regularly
Regularly reviewing and updating your trust ensures that it continues to reflect your wishes and meets your current needs.
Some of the top reasons why you’ll want to consider updating your trust include:
Family Circumstances
If there have been changes in your family circumstances, such as the birth of a child, death of a beneficiary, or divorce, you may need to update your trust to ensure that it reflects these changes.
Financial Status
If there have been changes in your financial circumstances, such as acquiring new assets or becoming eligible for new tax benefits, you may need to update your trust to reflect these changes.
Changes in Estate Planning Laws
Estate planning and tax laws are constantly changing, so you’ll need to ensure your trust reflects new state requirements and is legally binding. Working with an attorney can ensure you’re notified of any new laws that affect your current trust or estate plan.
Need to Modify a Trust?
At KTF Law Firm, our experienced attorneys can help you create a trust, modify it as your circumstances change, and ensure that it complies with Minnesota law.
To get started, contact us for a free consultation!
