SEVEN REASONS TO CHANGE YOUR REVOCABLE TRUST
Creating a revocable trust is one part of proper estate planning for the protection of your family. However, even after creating a revocable trust, there may still be reasons to change, or amend it.
As a revocable trust lawyer Wentzville, Missouri, much of my time is not only spent with clients creating new documents but changing their existing documents.
This article discusses seven reasons to change your trust:
You Want New Beneficiaries: Every trust must have beneficiaries to receive your stuff when you pass away. You may want to change those beneficiaries over time. Perhaps you want to keep the same beneficiaries, but change the distribution percentages. Either way, you’ll need to change the trust to do so.
You’ve Moved To Another State: If you move to a new state, your trust needs to be amended to reflect this fact and usually to change the governing law provision. A Missouri living trust is governed by Missouri law and will state this in the document itself. If you move to Michigan, you’ll need to change the governing law provision so that Michigan law controls.
You Had Another Child: Having another child is a classic example of when you need to update your revocable trust. They should be included in the document so that it’s clear they are to receive part of the trust estate when you pass. A quick amendment can resolve this issue.
You’re Getting Divorced: Perhaps an obvious example of when to change your trust document is when you have divorced since it was created. Most trusts these days are joint revocable trusts created by both you and your spouse. Since you likely left everything to the other spouse, you’ll need to amend your documents, or more likely, completely re-do them once you’re divorced.
You’re Getting Married: On a more positive note, if you’re divorcing someone but marrying instead, you’ll likely want to update your trust so that your new spouse is at least a partial beneficiary of your revocable living trust.
You’ve Married And Now Have Stepchildren: If you have stepchildren, they will not receive property out of your trust generally unless you have adopted them, or, otherwise, you have provided for them in your trust. The safest bet is to amend your trust and include them in the document if that’s what you intent.
Change In Law: New laws are created and old laws are repealed or changed all the time. Some of these situations can greatly affect your estate planning, including your revocable trust. Consult with an attorney to make sure that any change in laws is reflected positively in your documents.
Amending your trust in Missouri is not all that complicated. You’ll meet with an estate planning lawyer Wentzville to discuss the changes, he or she will draft the amended documents and you’ll sign them, just as with your original documents. The new documents will supersede the old and you’ll have an estate plan that fits your current circumstances.