Can a trust be amended?
There are countless benefits to using a trust as part of your estate plan, including tax savings, creditor protection, and avoiding probate for the trust assets.
Despite careful drafting, key trust terms may be ambiguous, or distribution considerations may become unworkable as beneficiaries age. Worse yet, the trust may provide no way to remove a trustee without costly litigation.
Whatever the reason, many Georgians come to us wondering “can a trust be amended”? We tell our clients that the need to make amendments to a trust is common, and that Georgia offers options for amending a trust.
Read below to learn more about common reasons trusts are amended, and your options as a trustee or beneficiary.
Related Article: Should You Choose a Will or Trust in Georgia?
Common Reasons Trusts are Amended in Georgia
There are myriad reasons to want to amend an irrevocable trust. These can include distribution and investment provisions that no longer fit the needs of the beneficiaries, changes in tax laws, and dissatisfaction with the named trustees and successor trustees. If you have questions about amending a trust, a trust litigator can help.
Administrative Issues:
Beneficiaries and trustees may want to amend a trust because its distribution and investment guidelines are unclear or unworkable or the reasons a trustor had for limiting distributions to one beneficiary (such as a substance abuse problem) may no longer be necessary.
Dissatisfaction with Trustee:
Sometimes beneficiaries want to remove a trustee for innocuous reasons, such as a disagreement about investment strategies. The trustee has not technically violated a fiduciary duty, but the beneficiaries would be more comfortable with a corporate trustee. In this case, beneficiaries may seek to modify the trust to permit them greater ease in removing a trustee.
Unforeseen Circumstances:
Although the testator may have tried their best to account for any circumstance when creating their trust, often unforeseen circumstances arise that prevent the trust from functioning efficiently. If you face any of these issues, you likely need legal advice regarding whether a your trust can be amended.
How Can A Trust Be Amended In Georgia?
The state of Georgia has different rules for revocable and irrevocable trusts:
Can a Revocable Trust Be Amended?
If you have a revocable trust in Georgia, the process for making changes is fairly simple. As the grantor, you can modify or cancel the trust by adhering to the guidelines specified in your trust document. Typically, this just involves creating an amendment document and executing it in the same manner in which you executed your trust.
Once the grantor of a revocable trust passes away however, the trust becomes irrevocable.
Related Article: Can You Change an Irrevocable Trust?
Can an Irrevocable Trust Be Amended?
In the case of irrevocable trusts, amendments are a bit more complicated. Usually, all of the beneficiaries (and the grantor, if the grantor is alive) must agree on the amendment, and even then court approval may be required. This process can be highly complex, so it’s really important that you seek advice from an estate planning attorney. One way to prevent headaches in the future is to appoint a trust protector when the original trust is drafted. The grantor can give this person authorization to make specific changes to the trust without beneficiary or court approval. Trust protectors can help ensure that the trust continues to align with the grantor’s intentions and desires even after their passing.
How Can a Trust Litigator Help You?
If you’re grappling with trust administration challenges, you deserve legal representation that advocates for your best interests. Our team has the compassionate understanding and specialized knowledge to assist you in with the obstacles you’re confronting so you can make the best choices for your future. The attorneys at Gaslowitz Frankel LLC are highly experienced in addressing your questions about the legal processes associated with trust disputes. At Gaslowitz Frankel LLC, we are fully committed and equipped to work towards achieving the best results for you.
Can a Trust be Amended? Consult With Gaslowitz Frankel.
Here at Gaslowitz Frankel, our goal is always to advocate for the best outcome for our clients. The key to a successful outcome regardless of the path you choose to take is connecting with an attorney from the very beginning.
If you are seeking help finding a resolution for a dispute, we’re here to help. Contact us by filling out our contact form for a free consultation about your case.
