How Can I Modify or Terminate a Trust in St. Louis?
If one or more types of trusts are an integral part of your estate plan in St. Louis, it is important to know how to modify, alter or terminate them should you wish to make changes down the road. Your ability to do so – and the steps required to make the change – will depend on the type of trust you created.
Modifying an Irrevocable Trust in St. Louis
The two primary types of trusts in Missouri are revocable and irrevocable. The key difference is that revocable trusts may be changed or modified at any time after they’ve been created, while irrevocable trusts cannot be altered by the creator. Though the permanency of an irrevocable trust can be daunting, it is still an attractive option for those who wish for greater asset protection.
By law in Missouri, the maker of an irrevocable trust can under no circumstances make changes or terminate the trust. This includes adding or removing beneficiaries, replacing the trustee, and adding or removing assets. Only in very limited circumstances may a court decide to make changes to an irrevocable trust. This is why it is critical to take care when initially creating your irrevocable trust.
Under the Revised Statutes of Missouri § 456.4-412, modification or termination of an irrevocable trust can be completed by the court only because of “unanticipated circumstances or inability to administer trust effectively.” In these situations, the court will modify or terminate the trust to further the purposes of the trust in accordance with the trust-maker’s “probable intention.”
How to Modify or Terminate a Revocable Trust in St. Louis
If you have a revocable living trust, on the other hand, you have the ability to change or terminate the trust at any time and for any reason as the maker. There are two basic ways an alteration can be made to irrevocable trust in Missouri:
- Trust amendment. You can put the modification you wish to make in writing in a document titled “trust amendment,” with your signature and the date. You can attach this amendment to your original trust documents for it to become part of the revocable trust. This way is most suitable for small or minor changes to a trust.
- Trust restatement. If you wish to make larger changes to a revocable trust, a restatement is the better option. With this process, the original trust documents must be recreated with the changes you wish to make. The entire document then becomes the “trust restatement.”
If you want to terminate or revoke a trust entirely, you must follow the instructions for doing so that are included in the trust, if provided. Typically, you must state your intent to revoke the trust in writing, then defund the trust and transfer the titles of any assets previously held in the trust.
When to Contact a Trust Attorney in St. Louis
Before attempting to make changes or terminate a trust in St. Louis, it is in your best interest to consult with an experienced trusts attorney in St. Louis. A lawyer will make sure you complete the desired task according to all applicable laws and the correct legal procedures in Missouri. This can prevent common mistakes that may otherwise jeopardize the integrity of your trust and put the future of your assets at risk. Contact one of our estate planning attorneys in St. Louis today.