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How To Update Your Revocable Living Trust

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It has been quite some time since you came into our office and you are wondering about the process for updating your Revocable Living Trust. Family members have been born or passed away, tax laws have changed, or maybe you are concerned about a beneficiary’s ability to manage their future inheritance. As a reminder, your Revocable Living Trust is a flexible legal tool that allows you to manage and distribute your assets according to your wishes, both during your lifetime and upon your passing. When crafted correctly by an experienced attorney, a Trust will make the disposition of your estate easier for your loved ones by avoiding probate. If you are ready to make changes to your Trust, know there are a few ways to accomplish this: 

  1. Amendment: Revocable Trusts usually include provisions that allow the trust’s creator, known as the grantor, to amend the trust document. An amendment is better suited for a single change or minor adjustments to your plan. An example of a single amendment is giving a set monetary gift to an individual or charity.
  2. Restatement: Instead of making multiple amendments to a trust document, you can restate the entire trust. A restatement involves creating an updated trust document that incorporates all the changes you wish to make while preserving the original trust’s basic structure and intent. This is a cleaner, preferred method if you are making multiple changes to your plan if there have been changes in the law, or if a considerable amount of time has passed since you last executed your documents. A restatement also includes an update of your Pour Over Will, Certificate of Trust, Financial and Healthcare Powers of Attorney, Advance Directive, and HIPAA Authorization. 
  3. Revocation: In some cases, you may want to terminate a trust entirely. Depending on the terms of the trust, you may have the ability to revoke the trust and distribute the trust assets back to yourself or to the beneficiaries. One example is a divorcing couple revoking their married joint Trust.
  4. Decanting: Decanting is a new process in the State of Maryland as of 2023 by which a successor trustee can modify the current terms or even transfer assets from one trust to a new trust. This can be useful if the original trust no longer serves its intended purpose or if changes in circumstances warrant a modification of the Trust terms. 

As a client of our firm, you are entitled to complimentary reviews. We recommend reviewing your documents with us every three to five years or if there have been any significant changes to your health, wealth, or family circumstances. At this meeting, one of our attorneys will advise of the best method to use that will effectively incorporate your new wishes into your existing estate plan. Reach out to us today to review your estate plan with one of our trusted attorneys. 

Jon J. Gasior, Estate Planning Attorney
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About Jon J. Gasior, Estate Planning Attorney

His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime. About the Author !