When to Change Your Living Trust

Why significant life changes require a review of your trust

Significant life changes, such as those listed above, may not require you to change your revocable living trust. They should, however, raise a red flag for you to review the trust to see how it relates to your new situation.

For example, if you are recently divorced and your former spouse is still a beneficiary of your living trust, the former spouse might be able to inherit your property if he or she outlives you. You should change your living trust immediately so that your former spouse is no longer a beneficiary.

How do you amend or revoke a living trust?

Revoking or amending a revocable living trust can be done with or without an attorney. You can amend a living trust without having to go to court. 

If you created the document through an online service, you should be able to amend it through them for a small fee. Some services might even amend it for no fee at all if you have a subscription. Working directly with an attorney is also an option, although generally, it's the most expensive one.

Steps for amending or revoking a living trust

Here are some of the general steps for amending a trust:

1. Choose an online legal services provider or an attorney. There are many different options for amending a revocable living trust online. If you use an online service, they should already have the forms for you.

2. Be as clear as possible. You want your successor trustee to understand how to distribute your property. Be sure to specify the name of the trust, the date, and exactly what you are changing—whether adding or deleting.

3. Have the amendment signed according to your state's laws. Amendments typically need to be signed and executed with the same formalities as the original trust. This usually involves a notary and/or witnesses, but be sure to check with your state's rules.

4. Keep your trust document and amendment together in a safe place. Wherever you kept your original trust document, you'll want to keep your amendment. Be sure you pick a place that will be easy for your successor trustee to access. 

Alternatively, do what is called a restatement of the trust. If there are substantial changes that have to be made, it might be better to do a restatement of trust. This does not revoke the original trust, but recreates it so you keep the original trust with the property that is already in it. It allows the trust to be rewritten as a new document with the necessary changes, which avoids the confusion of an amendment.