Life is full of change and unpredictability. As time passes, your life circumstances evolve – families grow, financial situations shift, relationships transform. With these changes, your trust, an essential part of your estate plan, may need updates. It’s okay to change your mind, and at Law Offices of Laurie E. Ohall P.A., our Brandon will and trust lawyers are here to guide you through the process. Here are some key points to know when you wish to make changes to an older trust:
Understanding the Type of Trust
The first step is to understand the type of trust you have. Trusts generally fall into two categories: revocable and irrevocable.
- Revocable trusts, as the name suggests, can be changed, modified, or revoked entirely during your lifetime.
- Irrevocable trusts, once created, generally cannot be altered or revoked without the consent of the beneficiaries.
 Modifying a Revocable Trust
If you have a revocable trust, making changes is a relatively straightforward process. You can work with an attorney to draft an amendment to the trust that reflects the changes you want to make.
Example: Suppose you have a new grandchild and want to include them as a beneficiary. You would work with your attorney to draft an amendment that adds the grandchild to the trust.
Modifying an Irrevocable Trust
Changing an irrevocable trust is more complex but not impossible. It typically requires the consent of the beneficiaries and, in some cases, the approval of the court. There are a few legal strategies that may be used depending on the situation, such as:
- Decanting: This involves moving the assets from the old trust to a new one with different terms.
- Judicial modification: This is where the court is asked to approve changes to the trust.
- Non-judicial settlement agreements: This is an agreement between the parties to make certain changes without going to court.
Remember, each method has its pros and cons, and the best approach will depend on the specifics of your situation.
Consider Your Changes CarefullyÂ
It’s important to consider any changes carefully. What may seem like a minor tweak could have significant tax implications or disrupt the balance among beneficiaries.
Example: You might want to change the trust to leave more assets to a particular beneficiary. However, this could potentially lead to disputes among beneficiaries or increase the taxable estate.
Why You Need a Brandon Will and Trust Lawyer
Making changes to a trust can be complex, and the potential ramifications are serious. An experienced Brandon Will and Trust lawyer can help you understand your options and guide you through the process, ensuring your trust continues to serve your goals and protect your loved ones.
Getting Help
Has your life changed since you set up your trust? Are you considering making updates to reflect your current circumstances? Contact Law Offices of Laurie E. Ohall P.A. today to schedule a consultation and make sure your trust is up to date. Don’t leave your legacy to chance. Secure peace of mind for yourself and your loved ones by calling (813) 438-8503 to secure your appointment.