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Revocable living trust 201

Photo Credit: Jaime Burciaga

What are revocable living trust amendments? One of the most attractive features of your revocable living trust is its flexibility. You can change the terms of your trust any time you wish or as is necessary. Any time you make changes to the terms of your trust document, you must make them in the form of an amendment, which can also be called a codicil.

Numerous amendments make it difficult to administer your trust. It is suggested to have no more than two amendments in existence at the same time. If a third amendment is needed, it is more appropriate to prepare a single document incorporating both of the prior amendments as well as the terms of the entire original trust document. This is called an "amendment -in-it’s-entirety."

Why do you need amendments? Only a properly executed amendment has the full legal effect as the original document and is the only way you can change the terms of your trust. You might need an amendment to your trust if you change the beneficiaries of it, change your successor trustee, or make another major change to the document.

To successfully execute this document, you need to sign in the presence of a notary and keep it with the original trust document.

Another key document of the living trust is the Certification of Revocable Living Trust. This is a short or condensed version of your trust that verifies the trust's existence and explains the powers given to trustees. It does not reveal any information about the trust assets, your beneficiaries, or their inheritances.

Why do you need a Certification of Revocable Living Trust? Simply put, most financial institutions require a copy of your trust to facilitate changing title. For instance, you want to open a bank account in the name of your trust. The bank is going to ask you for a copy of the trust. We certainly don't want to give them the original document or even a copy of the original documents. That would nullify the privacy that the trust affords you. This particular document enables you to open accounts, whether in a bank or brokerage firm, and purchase large ticket items such as a home or new vehicle without revealing the details of your estate planning. The last thing you want is for an unsavory employee to have access to your family's most private information. This certification serves as verification for your bank, or any other financial institution that you have a valid revocable living trust.

In order for your certification of trust to be binding, you must sign and date it in the presence of a notary public because it is a legal document.

For more info: There's a wonderful book published by NOLO Press and written by Denis Clifford, attorney. The book is called, "Make Your Own Living Trust." Again, I must caution you to have your attorney review any living trust documents you prepare on your own. You need to make sure that your living trust fits you like a glove and only an expert can know that for sure. If you don't, the disaster will lie with your family after your passing. Remember, mistakes are costly; advice is cheap. You can find it at www.Amazon.com.You can find the first article at http://budurl.com/3e93 and the second article at     http://budurl.com/larv. Happy reading!