Can I Amend My Revocable Trust?
A revocable trust can be amended or completely revoked by the person who created the trust, called the grantor or settlor. By contrast, an irrevocable trust is one that cannot be altered unilaterally by the grantor. Many, but not all, living trusts are revocable. As long as your trust has the word "revocable" somewhere in the title or description, you should be able to amend the trust at your discretion. Amendments can include changing the terms of the trust and transferring assets.
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Revocable Trusts
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The grantor of a revocable trust does not need the permission of the beneficiaries or trustee to amend or revoke the trust. There are several possible ways to amend a revocable trust, and the laws of the state in which the trust was executed may have established preferred methods. Also, the original trust document itself may describe how the instrument can be amended. You should consult with a local attorney or a state-specific legal resource to ensure enforceability of your amendment.
Amendment
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The easiest and most common method for amending a trust is to draft a document called an amendment (see the Resources section of this article). The amendment should clearly identify the trust being amended and the specific changes being made. This is a convenient way to remove or add beneficiaries or trustees or to alter the dispensation of trust assets. If the trust assets include real estate, you should definitely have the amendment notarized, says Findlaw. The amendment can then be attached to the existing trust instrument.
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Revocation
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The biggest amendment of all is simply to revoke the trust entirely and create a new trust. According to the ABA Family Legal Guide, you should do this when making sweeping changes to the trust that would be difficult to make by adding an amendment sheet to the trust. While doing this can be less confusing, Findlaw cautions that the process of creating a new trust can be awkward and time consuming because all trust assets have to be transferred and retitled in the name of the new trust. Revocation involves making a signed writing that explicitly revokes the old trust.
Restatement
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Another possibility is to restate the trust in its entirety. In this approach, you never actually revoke the trust, but you entirely redraft the trust document to include the major changes you want to make. This way the assets never leave the trust and do not have to be transferred or retitled. Restating the trust can also be useful if there have already been one or more amendments made, or if there has been a substantial change in the law since the original trust instrument was drafted.
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References
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