If your life or the law has changed since you signed your trust, you need to update your trust. You can update your trust by either an amendment or a restatement. What is the difference? An amendment is used for updating one specific section or provision of a trust, and a restatement is used for updating the whole trust. Which is best for your situation?
Is an Amendment or a Restatement Better For You?
Imagine a cherished family recipe that you have. If you modified that recipe by crossing out and replacing one or two instructions, you could still easily read the recipe. However, if you change half the recipe that way, the recipe will be increasingly hard to follow correctly. The time will eventually come that you should simply re-write the amended recipe on a blank piece of paper. If someone else tries to read your crossed out recipe, they very well could do it completely wrong and make an awful meal from a great recipe.
Updating a trust can be the same. Making a small number of changes will be ok, but when you make a lot of revisions to the trust, eventually your instructions can become unclear and you should do a restatement. Restatements are better for larger updates because they:
- Are easier to read and administer
- Are clearer and less ambiguous
- Are easier to store and provide to your financial professionals and institutions
- Are harder to lose
- Better protect that privacy of your estate plan
- Are easier to update with any changes in the law.
Have Questions About Updating Your Trust? We Can Provide Answers
Before you decide about updating your trust, it is important to make sure that your trust is still internally consistent after any previous changes. We will work together to make sure that your estate plan reflects your vision.
If you have questions, do not worry; questions are normal. I can answer your questions and help you feel comfortable with the process of updating your estate plan. I will work with you to help you determine the best way to update your trust. Contact The Rains Law Firm to see what kind of trust modification is best for you.