Should you amend or rewrite your revocable trust?
It’s important to review a revocable trust regularly to see if any amendments are needed, such as when something changes in your life or if the law changes.
There are two ways to go about it.You can either amend the existing trust to change a certain part of it or rewrite the whole trust, which is known as a restatement.
Is an amendment easier and more cost effective?No, that's not always the case. Remember that your trust should provide instructions to your heirs about your wishes, so it has to be clear and comprehensive. If you're making one or two simple changes, then amending is often sufficient. That's especially true if the changes don't interrelate.
When is it time for a restatement?If you've made a lot of changes over time, it might be time for a restatement to ensure that the trust clearly states your wishes and is set up to be administered properly. In addition, a restatement can also reduce how much paperwork you need to give to third parties like banks and avoid beneficiaries learning about prior terms of the trust.