Living trusts are common in Connecticut estate planning because of their favorable attributes, such as not having to go through the probate process and gaining more flexible control over its terms and implementation.
But what if you want to add properties or change beneficiaries to the trust? Can you still modify it?
Is the trust revocable or irrevocable?
Before making changes to a living trust, one has to check if it is revocable or irrevocable. Revocable trusts are flexible to modification or revocation. However, irrevocable trusts cannot be subject to changes or cancellations.
Reasons for making changes
Many situations can happen within a few months or years after creating the trust. Some circumstances revolving around the trustor’s life may warrant changes to the document. Reasons for amending a revocable living trust may include but are not limited to:
- Adding or removing a property
- Changing the trustee
- Changing a beneficiary
- Changing a condition of the trust
These are some of the trustor’s motivations to make changes to a trust.
The process of amendment
If one has finally decided to modify their trust, they can create a trust amendment document outlining the minimal changes without altering the trust’s structure. This includes changes in trustee, beneficiary and trust conditions. However, if the change is substantial, a trust restatement is more fitting since significant modifications would likely change the structure, and the trust would need to be rewritten.
Whether creating or modifying a trust, it is important for the trustor to understand the effects of their trust both on the day of the document’s establishment and in the future.