If you already have an estate plan in place, you may wonder if you can change a trust in Washington. This is a common concern for many Washington residents since circumstances change, and you may need to alter or revoke your trusts.
In today’s post, we will discuss whether or not you can change a trust in Washington and what the differences are between an irrevocable trust and a revocable trust. Additionally, we will discuss different scenarios where changing or revoking a trust may be necessary. So, keep reading to find out if you can alter or revoke trusts in Washington.
Understanding Irrevocable vs. Revocable Trusts
If you want to change a trust in Washington, the first thing you need to understand is the different types of trusts. Washington residents often have either an irrevocable or a revocable trust, which will directly impact whether or not you can change it.
Here is a quick breakdown of how these two trusts work:
- Irrevocable trusts: These types of trusts are usually permanent, as you are giving up your control of the assets added to the trust. And although this means you cannot easily change or revoke the trust, it does provide greater protection for your assets.
- Revocable trusts: These types of trusts provide greater flexibility, as you will maintain control of your assets while you’re alive and competent. Because of this, you can regularly change the details of your trust as you see fit, while still protecting your assets.
How to Change a Revocable Trust
It isn’t uncommon for Washington residents to need to change or revoke a trust in Washington State for a variety of reasons. And as you now know, this is a possibility if you have a revocable trust.
You have the option of either modifying or revoking your trust, depending on the circumstances and your goals. If you simply wish to change certain aspects of the trust, such as adding or removing assets or beneficiaries, you will need to create a revocable trust amendment. This is a written document that allows you to detail what aspects of the trust you wish to change without completely altering the entire trust.
You could also go the route of requesting a trust restatement, which is when an active trust is completely rewritten.
Can a Revocable Trust Be Revoked Entirely?
If you wish to revoke your trust entirely, you will need to create a revocation document specifying this so that your assets will be transferred back to your name. Keep in mind that this process can become quite complex for some estates, especially when it comes to retitling assets.
So, whether you are revoking a trust or simply changing it, it’s always best to consult with a revocable living trust attorney in Spokane, WA. An attorney will have experience in this area and can help you decide what the best course of action is.
When You May Need to Change a Trust
Anything can change after you create your trust and estate plan, which is why it may be necessary to make some changes. Here are some common examples of when you may need to update your trust terms to accurately reflect your circumstances and wishes:
- A new marriage, remarriage, or divorce
- The birth of a child or grandchild
- The death of a beneficiary
- A change in financial circumstances
- Tax or estate planning law changes in Washington
- Changes in family dynamics
Mistakes to Avoid
Now that you know how you can change a trust in Washington and when you may need to do this, you still need to proceed with caution. Although this process is relatively straightforward, there is still the potential for issues to come up if done incorrectly.
So, here are some common examples of mistakes you should avoid when changing or revoking your trust:
- Improper documentation: If you simply wish to change your trust terms, you need to draft an amendment in the correct way. Common mistakes people make include not specifying what they want changed or not following the correct amendment format.
- Legal considerations: Even if you are only changing your trust, you need to execute the amendment in a legally binding way. This includes having the amendment notarized and signed.
- Revoking vs Changing: Another mistake people commonly make is not choosing the right solution if they aren’t happy with their trust. Depending on what you want to change, it may make more sense to have your trust rewritten or revoked entirely. When you work with an estate planning attorney, they can help you decide what the best solution is.
FAQ Section
Can I change beneficiaries in my trust?
Yes. If you have a revocable trust, you can easily change your beneficiary designations with an amendment.
What’s the difference between a trust amendment and a restatement?
You need to use a trust amendment document when you need to change certain terms of your trust, such as an asset or beneficiary. Whereas a trust restatement is an option that allows you to have your active trust rewritten. An amendment is often used if the changes you want are minimal, while restatement is often required for more extensive trust alterations.
Can an irrevocable trust ever be changed in Washington?
Depending on the situation, you can make minimal changes to an irrevocable trust in Washington. However, these changes are often very limited and require court approval or the consent of all of the trust beneficiaries.
Do I need an attorney to revoke a trust?
Not necessarily. Although you aren’t legally required to have legal representation when revoking a trust, whether it is revocable or irrevocable, it’s strongly recommended. An attorney can help you with this process, ensuring it is the right solution for your situation and that you do it correctly.
Start Preparing For the Future With the Help of an Estate Planning Lawyer in Washington
If you experience a change in circumstances, such as a new marriage or divorce, it’s important that you change the details of your trust. To learn more about how you can do this, reach out to Kristina Mattson Law today by calling 509-998-6629 to speak with an experienced and knowledgeable estate planning lawyer in Spokane, WA.
