While minor changes may be made through an amendment, there are some changes that must be made by completely restating your trust. While the name of the trust will remain the same, you will still need to have the legal documents prepared to change your trust agreement. This is so you can keep the same Trust name and don’t need to retitle all your assets, but would like major changes and updates made to your existing trust. It allows you to have a brand new, completely up-to-date version of your trust. Some of the changes that are appropriate to handle through a restatement include:
- Adding or removing a Successor Trustee whose name appears on all your documents throughout your trust.
- Adding or removing a spouse due to marriage, death or divorce
- Adding or removing a beneficiary to the trust
- Distribution changes for family members
- Distribution changes to charities
- Updating an older or out of state trust that is no longer adequate or compliant based on current state and federal regulations.
These types of alterations dramatically change the trust and therefore are not appropriate to deal with through an amendment process.
What Happens When I Restate a Trust Agreement?
When restating a trust, the changes you make go into effect immediately. While the name of the trust does not change, the specific allocations of assets, new beneficiaries or other major changes you have made will be in full force and effect until such time as the trust expires or you make an additional change through the amendment or restatement process. We will evaluate the changes you are planning to make and help you determine whether a restatement or amendment is the appropriate way to make the changes you wish to make to the original trust document.
Keep in mind, you cannot simply hand-alter an original trust agreement since it is not legally binding on the successor trustee or the trust beneficiaries. Changes must be completely written out, signed and witnessed in order to withstand scrutiny. Contact Kramer Legacy Documents, LLC today at (623) 974-2272 for assistance in preparing the documents necessary to restate your trust agreement.