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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Are there Expiration Dates for Estate Plans?

Monday, July 27th, 2009

There is no expiration for estate plans.  However, major life events should prompt you to review your plan and make sure that your wishes are still enforced.  Examples of these common life events include purchase of a home, death of a loved one, birth of a child, divorce, or marriage.

If you’re married, there are certain considerations that you should think about in creating an estate plan.  First, you would need revision of your trust to include your existing spouse.  Also, you may acquire a power of attorney for managing your finances if ever you’re incapacitated or unable to manage any of your financial affairs.  Therefore, a well-rounded estate plan must include a power of attorney for health care which appoints a trusted individual (typically your spouse) to make medical decisions if you’re unable to do so yourself.

While for remarriage, you need to revise your will or trust immediately.  Any gift to your ex-spouse may not be valid.  So how will the court decide who to give it to?  Therefore, you should make this change yourself so that you’re sure to carry out your wishes when you pass away.  Same goes to your children.  Appointing a guardian for the minor ones would protect them even when you’re gone.

Tags: attorney, estate plans, expiration, married, power of attorney, remarriage, trust, will
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