Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Klenk Law

Amending a Revocable Trust

Posted on Mon Dec 12, 2016, on Revocable Trusts and Living Trusts

From our “Ask a Question” Mailbag: Revocable Trust Amendment

Most Recently Updated August 9, 2018.

“How can I amend my revocable trust?”

Revocable Trust Amendment

Revocable Trusts formed during your lifetime are typically designed to be easily “revoked” or modified.  Because a Revocable Trust is meant to replace your Will, it should take into consideration the fact that life brings change. Over time you may wish to alter your preferences.

I would need to see your Revocable Trust to point out the clause, but there should be a paragraph that states the trust is revocable in full and that you are free to make amendments.

See my website for more in-depth information about Revocable Living Trusts.

Amending A Revocable Trust Carefully.

Granted that it might be easy to change your trust, but do so carefully.  Modifying the trust is like changing your Will.  If you make a mistake or are unclear, you could unintentionally void a gift, create litigation or create a taxable event.  Further, you must use the correct language to show that your Amendment does not completely void the remainder of the Trust.  I have seen people try to amend a Revocable Trust by adding a gift, but they instead modified the trust so that only the single gift existed.  As a result, all the rest of the assets then passed under the rules of intestacy.  A terrible result! 

Handle a Revocable Trust modification with the same consideration as a change to your Will.

If Equality is Your Wish, Be Careful About Taxes.

Revocable Living Trusts do not help you avoid taxes, so any change made to your trust might create an unforeseen taxable event. Your death may trigger many different types of taxes.  Take into consideration all Income Taxes, Capital Gains Taxes, Inheritance Taxes, Estate Taxes, and others that affect your estate.  If you fail to consider all taxes, you may unwittingly create an uneven division of your assets.  For example, if you live in a state with an Inheritance or Estate Tax and give a particular gift to one child and the residue to another, the child receiving the residue might be burdened with the tax due on both gifts.  Care must be taken to maintain your wishes.

Consider Your Incapacity (Not Just Your Death).

In modifying your Living Trust, be careful that you don’t damage the portion that addresses how you are cared for during your lifetime.  Most Revocable Trusts focus only on what happens after you die.  Instead, think what would happen if you had a stroke, suffered from Alzheimer’s or some other disease.  If so, you no longer could manage the Revocable Trust.  Who would step in? Indeed, plan for your potential incapacity!  If your Revocable Trust only names a successor trustee, that trustee cannot take over without proof of your incapacity.  As a consequence, what could have been a smooth transition could evolve into an expensive court hearing.  Instead, consider other alternatives such as naming a current co-trustee.  Other options exist, depending on your specific situation.

More Planning Questions?

The Revocable Trust Amendment is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Revocable Trust Amendment

I hope that this article was helpful in explaining Revocable Trust Amendment. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Living Trust, Peter Klenk, Revocable Trust, Trusts

What Our clients are saying

Klenk Law Logo
Stars

I have had Peter Klenk prepare and revise my will. Always professional, knowledgeable and offers great advice. Highly recommend

Klenk Law Logo
Stars

Mr. Klenk has been easy to work with. I am confident he has given me good advice whenever I have called upon him. He has shown good work ethic and depth of knowledge in preparation of estate, wills, and trusts that I have worked with him on.

Klenk Law Logo
Stars

Peter provided outstanding advice and preparation of a will and trusts.

Klenk Law Logo
Stars

Peter is a model attorney who puts his clients first at all costs. His extensive expertise in estate planning and tax planning was a great comfort as we began, and have expanded, our family. He is very thoughtful, generous, and quick witted. His approach towards his business has been an inspiration to his peer group, and his zest for life is extremely infectious. Without reservation, I highly recommend Peter as trusted and cherished counsel

Klenk Law Logo
Stars

Peter provided outstanding advice and preparation of a will and trusts.

Let us put our expertise to work for you.

Free consultation within 24 hours.