Colorado residents who want to make changes to a trust might wonder whether it would be better to amend the trust or create an entirely new one. First, they should make sure it is possible to amend the document. Most living trusts can be either amended or revoked.
Amendments are fairly simple to add. They simply state that the trust can be amended, say what the amendment is and acknowledge that the rest of the trust remains unchanged. However, if the trust is amended multiple times, it could start to create confusion for the trustee.
Even in this case, making an entirely new trust might not be the best solution because it would involve having to retitle all the assets in the trust. A better solution might be an amendment and complete restatement. This is similar to creating a new trust but it remains a part of the original trust and thus does not require any asset retitling. A person who wishes to change a trust might want to discuss it with an attorney and how best to go about it.
People who are creating or revising an estate plan might want to look into the options offered by trusts. There are costs associated with trusts, so they are not the right solution for everyone, but for someone who wants to make the estate plan private or who wants assets to pass directly to beneficiaries without going through probate, they may be a good solution. Trusts can also be used to delay distribution. If a beneficiary is a minor, is irresponsible with money or should not receive the entire lump sum inheritance at once for any reason, a trust can be created. Distributions might be tied to the beneficiary reaching milestones, such as a certain age, or they might be made at the discretion of the trustee.