Purpose: The
purpose of a trust restatement is to revise the entire trust, from beginning
to end. The restatement is an amendment to the trust
and it also revokes all previous amendments.
Why use a Restatement?
Some trusts are substantially out-of-date, or have become irrelevant due to changes
in the statutes or case law. Amending these trusts
paragraph by paragraph could result in a very complicated amendment that is
difficult for future trustees to understand. It is faster (and
therefore cheaper) in many cases for an attorney to start over with a format
that the attorney knows is valid and applicable to the situation.
Do assets have to be retitled?
No, the name of the trust, the trustees, and the date that the trust was established remain the
same. Deeds, bank accounts, brokerage accounts, and other investments
do not need to be changed if the title of the assets is already in the trust.
Why is it sometimes more
efficient to use a Restatement? When clients come to me with a
trust that was prepared by another attorney or a paralegal service and ask
that it be amended, I am unfamiliar with the trust and will need to review
it at length before deciding how to amend it. The trust may have provisions
that are outdated, illegal, or contrary to the clients' wishes. It is
easier for me to start over with a restatement, using language that I know
will be effective. It is also cheaper for the client because I do not
need to charge them for a lengthy review of their current trust.
