Amendments to Living Trusts
A living trust is a legal instrument created by a person (known as the "settlor") to transfer property to a trustee who then holds that property for the benefit of a third party, the beneficiary. Once a living trust is created, it can be amended or revoked and recreated to change any part of the trust.
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Amendments
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An amendment is any modification to the original living trust that alters the original trust in some way. A modification can be as minor as removing outdated information and correcting errors in the document or as substantial as changing who the trustee or beneficiary is.
Authority
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Generally, only the settlor has the power to amend an original trust. A settlor can, however, provide someone else authority to make changes in the original trust if he dies or becomes incapacitated. This authority, if it exists, is usually created in the original trust and is limited to situations involving the settlor being incapacitated.
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Creation of Amendments
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To make an amendment, the settlor must make a declaration, that is, a statement of intent to amend the trust and then state the changes. Legal form websites such as LegalZoom.com offer fill-in-the-blank forms for declarations and trust amendments that make the amendment process a simple and straightforward process.
Function
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Living trusts are primarily utilized as an alternative to wills since trusts, unlike wills, do not require probate and they are not subject to inheritance or estate taxes in most instances. Living trusts are also used for transferring and managing property.
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