What is a Trust Restatement?

In plain English, a trust testament is a legal process of completely rewriting an existing trust document, replacing all of its provisions with a new trust document. It is a means of making substantial changes to a trust while keeping its original name and date. This avoids the need to retitle assets in the trust’s name. You can think of it as giving your old trust a complete overhaul while keeping the core of its identity.

What are the key features of a trust restatement? 

• Complete rewrite – Unlike a simple amendment, a trust restatement replaces the entire trust document with a completely new one.

• Maintains the original identity of the trust – The restated trust retains the original trust’s name and date. This means you don’t need to re-title the assets already held in the trust.

• Used for substantial changes – Generally speaking, a trust restatement is only used when significant changes are needed to avoid retitling every asset held in the trust. Changes can include adding or removing beneficiaries, changing distribution plans, or updating provisions due to changes in the law.

• Simpler administration – If a trust has been amended multiple times, a restatement can consolidate the changes into one document. This makes it easier for the successor trustee to manage.

• Formal execution – Like the original trust, a restated trust needs to be executed with the same legal formalities.

When is restating a trust necessary? 

• Major life changes – You might need a trust restatement for marriages, divorces, the birth of children or grandchildren, or the death of a beneficiary.

• Changes in distribution – You might need a trust restatement for disinheriting a beneficiary or changing how assets are divided.

• Change in trustee – You might need a trust restatement if the original trustee is no longer able to serve or if you want to appoint a new trustee.

• Outdated trust provisions – You might need a trust restatement if the original trust was created a long time ago, or if there have been major changes to Virginia law.

• Clarity and simplicity – You might need a trust restatement when multiple amendments have been made. In this case, a trust restatement can simplify the administration of the trust.

What are the benefits of trust restatement? 

Trust restatements offer several advantages, such as clarity and simplicity by consolidating every major change into a single new document and maintaining asset continuity. There is no need to retitle any of the assets that are held within the trust. In addition, trust restatement potentially offers some privacy protection by making the details of previous versions of the trust less readily available to beneficiaries.

Talk to a Virginia Beach, VA, Wills and Trusts Attorney 

The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who are considering alterations to their trust. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and we can begin discussing your needs right away.