While we generally create trusts to hold assets for our heirs to receive at a certain point, sometimes we want the opportunity to change the trust during our lifetime. Many things can change in life and sometimes these changes are enough to want to alter your trust. You can do so, but only with a “revocable trust.”
A revocable trust, commonly called a “living trust,” is often used as a way to avoid the otherwise-mandatory probate process, which can be costly both in time and money. However, it’s important to keep in mind that revocable trusts are still subject to estate taxes, so the assets within them are taxable as part of the estate.
With a living trust, the person who creates the trust, the grantor, is able to change the contents of the trust and its beneficiaries.
Why Would You Want to Restate or Revoke Your Revocable Trust?
Life-changing events such as births, marriages, and divorces can be both foreseeable and unpredictable. They are a common reason a grantor would want to alter his or her trust. Sometimes a grantor wants to choose a different trustee or wishes to change some of the provisions in the trust. The grantor may choose to restate the trust which retains the original trust name and date.
Other times it just makes more sense to revoke a trust. By revoking the trust you are able to essentially start from scratch with new trust.
How Do You Revoke Your Revocable Trust?
In order to revoke your trust, you must first ensure that it is in fact a revocable trust. You can begin to revoke your trust by taking out all of the assets within it. However, in order to do so, he or she must make sure that all of the deeds, titles, and other legal documentation is put back into his or her control first. He or she must own these assets.
Next, the grantor must compose a legal document expressing the desire to revoke all of the terms and conditions of the trust. Remember that in order for this legal document to be carried out properly, it must adhere to all relevant state laws. Since this can be a bit complicated, it’s generally in the grantor’s best interest to consult with a knowledgeable and experienced estate-planning attorney who can help him or her to properly draft it.
After this document has been completed, the grantor must sign and date it as well as have it notarized. Always maintain a copy of all trust documents both prior to and after revocation.
Heritage Legal, PC Helps Those in California to with Their Comprehensive Estate Planning Needs
To ensure that you and your loved ones are protected when you pass, it is wise to consult with a knowledgeable and experienced California estate planning attorney. They can help you to restate or revoke a living trust and will work to ensure that your wishes are carried out in the manner in which you desire.
At Heritage Legal, PC, we understand the importance of protecting the very things that you care about the most. We can help you to establish a comprehensive estate plan that meets your needs and the needs of your family. To learn more or to schedule a free consultation, contact us today!