Last week we wrote (in our weekly newsletter) about how to modify a trust by restating it into a whole new trust document. This week’s podcast episode gives us a chance to talk about the idea — a sort of Restatements 101 class, if you will.
What is a trust restatement? Think of it as a new edition of your trust. Or, as we describe, maybe Your Trust 2.0 (or 4.0, or maybe even 9.0). The basic principle of Restatements 101: the restatement washes away the old trust document altogether, and replaces it with a new trust. But it keeps the same name, so nothing has to change in trust funding.
When do you want to restate your trust (as opposed to just amending it)? It depends, but we will recommend a restatement when there are multiple amendments, or you want to entirely remove language that no longer serves its purpose.
We sometimes use trust restatements for other purposes, as well. In Arizona, for instance, a trust “decanting” may be accomplished by a trust restatement (with, of course, good legal advice). But most often the trust restatement is just a tidier way of modifying the trust without having to keep multiple versions at hand.