Q and A: Updating a Trust in Maryland
Q1: What is a trust amendment?
A: A trust amendment is a legal document used to change or update the terms of an existing trust. It allows the trust creator (the grantor) to make modifications to the trust without having to create a completely new one.
Q2: How do I amend a trust in Maryland?
A: In Maryland, to amend a trust, the trust's grantor must create a formal trust amendment document that clearly states the changes being made. This document must typically be signed and, depending on the type of trust, may need to be notarized to be legally effective.
Q3: Do I need to create a new trust to make changes in Maryland?
A: Not necessarily. In most cases, you can amend your existing trust by creating an amendment document. However, if the changes are substantial (e.g., you want to change the beneficiaries or the type of trust), creating a new trust may be more appropriate. It's always a good idea to consult an attorney to decide the best course of action.
Q4: What are the steps to amend a trust in Maryland?
A: The general steps to amend a trust in Maryland are:
Review the Trust: Understand the provisions in the existing trust document, particularly any instructions about amendments or modifications.
Prepare an Amendment Document: Draft an amendment that clearly specifies the changes you want to make. The amendment should reference the original trust and outline what is being changed.
Sign the Amendment: The amendment should be signed by the trust’s grantor. Depending on the trust, it may need to be notarized.
Update Asset Ownership: If any assets were transferred to the trust or listed in the original trust document, you may need to update the title or ownership documents to reflect the changes.
Distribute the Amendment: If necessary, provide copies of the amendment to the trustee and beneficiaries to inform them of the changes.
Q5: Is it necessary to have an attorney to amend a trust in Maryland?
A: While it is not legally required to have an attorney to amend a trust in Maryland, it is highly recommended. Trusts can be complex, and making errors in the amendment process could lead to confusion or disputes later. An attorney can help ensure that the amendment complies with Maryland law and is clear and enforceable.
Q6: Can a revocable trust be amended in Maryland?
A: Yes, a revocable trust can be amended or revoked by the grantor at any time while they are alive, as long as they are mentally competent. This flexibility is one of the key benefits of a revocable trust. The amendment must be in writing and follow the same process outlined above.
Q7: How do I revoke a trust in Maryland?
A: To revoke a trust in Maryland, the grantor must take steps similar to those required to amend the trust:
Execute a Revocation Document: The grantor should create a formal document revoking the trust. This document should clearly state that the trust is revoked and include the date of revocation.
Sign and Notarize: The revocation document should be signed by the grantor and, depending on the trust, notarized.
Notify the Trustee and Beneficiaries: It’s essential to inform the trustee and any beneficiaries that the trust has been revoked. If the trust held assets, the grantor should transfer the assets to themselves or to another appropriate entity.
Q8: What happens to the assets in a trust when it is amended?
A: When you amend a trust, the assets typically remain in the trust unless specified otherwise. However, if you revoke the trust, you will need to retitle or transfer the assets out of the trust, depending on your intentions. Consult an attorney to ensure that all legal steps are taken for asset transfer.
Q9: What happens if I don't update my trust after a major life change?
A: Failing to update your trust after significant life events—such as marriage, divorce, the birth of children, or the death of a beneficiary—could lead to unintended consequences. For example, a divorce might void provisions that benefit a former spouse. Similarly, without updating beneficiaries, a trust might not reflect your current intentions.
For specific advice regarding your situation, it’s always best to consult a qualified attorney in Maryland who specializes in trust and estates law.
At Atkinson Law, we listen to all our clients and protect their interests so they can receive a positive legal outcome. We’ll work with you and give you the best possible recommendation for your future. To learn more about Trusts, contact us today by calling (410) 882-9595 or visiting our website.
Relevant Maryland Law and Resources
Maryland Code - Estates and Trusts: The key legal framework governing trusts in Maryland can be found in the Maryland Estates and Trusts Code, Title 14 (Trusts) and Title 13 (Wills). These sections outline how trusts are created, amended, and revoked in Maryland.
Maryland Rules of Civil Procedure: The procedures for executing legal documents, including amendments and revocations of trusts, can also be found in the Maryland Rules of Civil Procedure, particularly in relation to formal witnessing and notarization requirements.
Case Law: There are several Maryland court cases that address trust amendments, but generally, Maryland follows the principle that a trust can be amended if the trust instrument permits such amendments, and if the amendments are executed according to the original trust's instructions.
Citations
Maryland Estates and Trusts Code, Title 14 (Trusts) and Title 13 (Wills)
Maryland Code, Section 14-202 (Trust Amendments)
Estate of Ashburn v. Ashburn, 420 Md. 434 (2011) (relating to trust amendment procedures)