Trust Amendment

Monday, September 28th, 2009

All good estate plans are designed to accommodate and anticipate changes.  The owner reserves the right to amend or revoke the trust in part or in whole.  And the most common amendment done by the owner is changing the trust asset distribution.  It’s so common for people to delete or add beneficiaries or even to adjust the amount or percentage that the beneficiary will receive.  Also, another common change is to change the order or names of successor trustees.

Because it’s so easy to amend any trust, some people are doing it on a regular basis.  There are some trusts with seven or more amendments.  But sometimes, it’s easier to just replace the whole trust instead of amending it several times. 

However, some people don’t like the thought of doing the trust all over again because it’s a bit daunting.  In a new trust, all assets titled in the first trust’s name needs to be transferred to the new one.  And it could be too much work to re-title assets.

So instead of creating a new trust, you can just restate it.  The great thing about this is: you don’t need to re-title the assets of your old trust.  A trust restatement is already funded, and could simple replace the original trust.

Tags: asset, assets, beneficiaries, estate plans, Family Trust, owner, trust, trust amendent, trust restatement
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Advantages of Revocable Family Trust

Sunday, June 21st, 2009

A trust can only be effective if you own the title to the asset or property.  Remember that when you transfer your assets’ title into trust, it’s called “Funding your Trust.”  And when assets are already moved, then there’s no need for probate because the control of the estate is now transferred to the trustee.

Here are some advantages of using revocable family trust:

• -If ever an accident or illness leaves you incapacitated, then your successor trustee would be able to handle your financial affairs - the court will not need to appoint any conservator or guardian.
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• -If beneficiaries are minor children, the trust continues to hold assets until the children reaches a more mature age.
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• -If you own real estate properties in several states, you can avoid the hassle, time, and expense of multiple probate proceedings.
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• -Husbands and wives can maximize federal estate tax exemptions.
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• -Trusts are more difficult to contest compared to a traditional will. In order to invalidate it, either you prove that it’s signed under duress or the maker was incompetent during the signing day.
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• -It’s almost impossible to contest family trusts. When wills are contested, the assets are usually frozen, however, assets placed in family trusts can still be distributed pending the legal challenge outcome.

Tags: advantages beneficiaries, asset, estate, Family Trust, family trusts, probate, property, trust, trustee, trusts
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