subject: Trust Restatements and Amendments [print this page] Trust Restatements and Amendments Trust Restatements and Amendments
The living trust is designed to allow its settlor/settlors to make amendments and revisions throughout his/her lifetime. However, using the proper vehicle to make amendments and restatements is imperative. If amendments and restatements are not done according the terms of the trust instrument, then they can be considered invalid when the trust is administered. Generally an amendment is made with the same formality as the trust instrument was created.
Having a professional analyze a trust is also important. A professional can advise individuals whether a simple amendment is necessary, or if it is appropriate to restate the trust in its entirety. A restatement is usually necessary to update the language of an older trust to be consistent with modern language and laws. An amendment is usually done to replace a single clause, or a small section of a newer trust with already updated language.
Again, it is important to make amendments and restatements to a trust properly and cautiously. A trust should always reflect its settlor's/settlors' intent. Oftentimes, mistakes can lead to expensive court decisions. It is always better to err on the side of caution and ask the court to bless a trust that is ambiguous; however, this process is expensive! Both filing fees and attorney fees can end up costing the trust estate thousands of dollars.
Although it is tempting to simply interlineate an amendment (handwritten amendments written 'in between the lines'), it can often times lead to an ambiguity when done improperly. Interlineations made to a trust must be done according to the terms of the trust. Interlineations can often times be difficult to read, names can easily be misspelled, and it is often times difficult to determine if the interlineated amendments were made by the settlor/settlors. Hypothetically, and disgruntled beneficiary or trustee could interlineate an amendment after a settlor's death to gain a larger portion of the trust estate. It is important to consult an estate planning professional for advice on how to make these amendments without error, with witnesses, and notarized.
Properly amending a trust will save money and effort in the long run.
