What is a trust modification?

A trust modification, or trust amendment, is a legal document that changes the terms of a trust. This document must be signed by the grantor (the person creating the trust) and the trustee (the person managing the trust). Trust modifications are often used to update trusts as laws and families’ needs change. For example, if a trust was created in Virginia in the 1950s, it may not account for the income tax laws that have been passed since then. A trust modification could be used to update the trust’s terms to comply with current requirements. Trust modifications are also commonly used to change the beneficiary of a trust, either to add or remove a beneficiary, or to change the amount of money or assets the beneficiary is to receive. The modification must also be approved by the courts in Virginia, and the grantor and trustee must show that all beneficiaries have been notified of the modifications before they are finalized. In Virginia, the trust modification must be in writing and must be signed by both the grantor and the trustee. It must also be submitted to the court in Virginia for review and approval in order to be legally binding. Once approved, the trust modification will become part of the trust agreement and all parties must comply with the new terms.

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