What is a trust modification?

A trust modification is a change made to a trust agreement. Trust agreements are legal documents that outline how assets should be handled and distributed after death. Modifications are typically made to update the document to reflect current wishes or to correct errors or omissions that may have been made when the document was created. In California, a trust can be modified by an amendment, or it can be re-created as an entirely new trust. An amendment is typically used if the desired changes are not too vast. It is added to the existing document and becomes a part of it. It is also typically used when the trust has already been funded. On the other hand, a new trust is created if the desired changes are more substantial and if the trust has not been funded. The original trust is revoked and the new trust is completely separate and distinct. This is sometimes the only option if the settlor wants to change the trustee or the beneficiaries. Regardless of the method used, modifications can be made to alter the terms of a trust, the beneficiaries, the trustee, the assets included in the trust, and the management of the trust. Any changes should always be made in writing and signed by all parties involved. The new or amended trust must also meet the requirements of California trust law.

Related FAQs

What is a guardianship?
How can I create a trust?
What are the tax implications of establishing a trust?
What is a spendthrift trust?
What are the duties of a trustee?
What is a special needs trust?
What are the benefits of estate planning?
What are the advantages of a revocable trust?
What is an asset protection trust?
What is a pour-over will?

What is a trust modification?

Related FAQs

Related Blog Posts