A codicil is always an option. You may however need to start over depending on the degree and amount of the changes you need.
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If you are transferring it to the Trust, we usually use a Quit Claim deed. You need to be very clear, however, that you are indeed transferring it correctly according to the terms of the trust and correctly filing it with the appropriate County. With property matters, you don't want want to make an error, as it could be very costly and could circumvent the work you did in creating your AB Trust in the first place.
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They CAN sue, the prospect of "free" money or entitlement of getting money can be tempting. Send them a letter with a deadline of what you expect them to do, by what date. If they choose not to contribute to paying the policy, they will then have a more difficult time disputing the evidence that they didn't chip in so have nothing coming. Good luck!
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