When clients opt for a trust-based estate plan, they have a few things in mind. Comprehensive documents that avoid probate are private and move smoothly through events like incapacitation and death. They also select this estate plan type for its ability to be altered. It is not set in stone like an irrevocable trust. It is amendable. However, amendments aren’t always best suited to accomplish the mission.

At Encore, we do not do amendments for documents that were created by others. We will do a restatement at our current rates. We will do amendments on documents we drafted.

While an amendment will accomplish the primary task of modifying beneficiaries, successor trustees, guardians, etc., it can become confusing. If a client created a trust 30 years ago and has amended it several times, this can become confusing. The original trust and all of the amendments are now a series of documents. If the trust is contested, these documents can be a source of contention. It can also be a tool used by heirs seeking inheritance. Ex’s disputing changes to beneficiaries they were unaware of, thinking their version of the trust was the most up-to-date.

When you encounter a trust-based estate plan with multiple amendments, or someone seeking to make major changes, it might be best to do a restatement. The restatement won’t change the original name of the trust or the tax identification. It also retains the original start date and Trustor/Grantor. But everything else is rewritten.

Your client may prompt the choice to do this, or you may recognize the need. We suggest starting with an Estate Plan Summary at Encore.

Neither an amendment nor a restatement is better than the other. There are just best-case scenarios for using each. Eventually, your beneficiaries are entitled to receive a copy of the complete trust.

What they receive may look like one of the lines below:

It is best to avoid potential sources of conflict when possible. Please ask questions if you feel a restatement is best for your client(s). We are here to help.