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How to Amend a Revocable Living Trust Agreement Without a Lawyer

There may well be events which require you to amend a revocable living trust agreement that you have created. The most common reasons why you might want to amend a revocable living trust include:-

• a change in your marital status;
• a move to another state;
• you adopt or have a new child;
• your child becomes an adult;
• a material change to your financial position or the value of your trust assets;
• a major change in tax law;
• one of your beneficiaries passes away;
• you wish to add a new beneficiary or change existing beneficiaries; or
• one of your trustees dies or is unable or unwilling to serve.

If any of the above events occur, or indeed any other event which is unlisted, you may wish to change the terms of your living trust.

The process required to amend a revocable living trust is quite straight forward. All you need to do is complete a Living Trust Amendment Agreement. Similar to the Living Trust Agreement, the Amendment Agreement will be between you as grantor and you as trustee of your living trust.

The Amendment Agreement will set out the precise manner in which you wish to amend a Revocable Living Trust Agreement and the exact changes to be made. In many cases, you will simply want to change the name of a beneficiary, make a new gift of an asset, or delete an existing gift. This is usually done by providing for the deletion of words or sentences and, in some cases, the replacement of those words or sentences with new ones. The Amendment Agreement will simply set out what these changes are. For example, it may simply say that “The words “John Smith” in clause 7.1 are hereby deleted and replaced with the words “Jack Jones”.

While there is no strict requirement to have an amendment agreement notarized, we do recommend that you have it notarized where it affects the distribution of real estate under your living trust.

How Can EstateBee Help You?

For more information on living trusts, read some of the other living trust articles on our website.

If you would like some template forms to help you amend a revocable living trust agreement, you can use one of our living trust amendment forms: Revocable Living Trust Amendment Agreement (Single Person) or Revocable Living Trust Amendment Agreement (Married Couple or Couple in Registered Partnership).

These amendment agreements, which have been prepared and approved by lawyers, come complete with step-by-step instructions on completing the living trust amendment agreements; and will allow you to amend your living trust quickly and easily without the need or expense of engaging their own lawyer.

If you have any queries about our products or services, please feel free to contact us.

How Living Wills Work and Protect You During Incapacity

Living wills allow you to state whether you want your life prolonged in the event that you are suffering from a terminal illness, or are in a permanent state of unconsciousness. Living wills allow you indicate whether you want certain treatments withheld or withdrawn if their function is only to prolong the dying process or to keep you ‘alive’ where there is no realistic hope of recovery.

For example, if you suffer serious brain damage in an accident, or suffer an incapacitating stroke, you may be permanently unconscious and unable to communicate your wishes to your doctor. In such cases, living wills let your doctor know the kinds of medical procedures and treatments you are (a) willing to accept and (b) not willing to accept.

In understanding how living wills work in practice, it’s important that you realize that living wills only come into effect when you are:

(i) suffering from a terminal condition, a persistent comatose condition or in a permanent vegetative state;

(ii) there is no real prospect of recovery; and

(iii) unable to make and communicate your own healthcare decisions.

It is only at this point will the person nominated under your living will have any ability to enforce or revoke any of the instructions that you have set out in your living will. However, before this person can lawfully act, the law in the majority of states and indeed the terms of most living wills require that one or in some cases two doctors must first personally examine you and agree that you satisfy the conditions referred to above and that the application of medical procedures would only prolong the dying process. If the doctor or doctors agree that this is the case, then the medical procedures may be withdrawn or applied, depending on the choices expressed in your living will.

How Can EstateBee Help You?

For more information on living wills, read some of the other living will articles on our website.

Alternatively, if you would like to learn more about living wills, and healthcare powers of attorney, or even make your own, check out our Healthcare Power of Attorney & Living Will Kit. This legal kit contains all the information and ready-to-use lawyer prepared legal forms and documents necessary to create a combined Healthcare Power of Attorney and Living Will. It also contains all the forms necessary to revoke that document.

If you have any queries about our products or services, please feel free to contact us.

Executor Liability When Probating or Administering an Estate

Executor liability is just one of the numerous risks that come with being appointed as an executor. We have set out below some examples (but not an exhaustive list) of ways in which an executor may be held liable for a breach of duty or responsibility. If executor liability crystallises, then the executor may be exposed to personal liability.

In the most common cases of executor liability, an executor is help liable where he or she has:-

• violated applicable law;

• failed to comply with the terms of the last will;

• abused any of his or her powers as executor; or

• dealt in the estate assets for his or her own account.

The administration of the estate generally needs to be commenced and concluded within a reasonable period of time. If you fail to do this and, as a result, the beneficiaries under the will are exposed to any form of financial or pecuniary loss, you could be held liable for the loss. Such risks of executor liability can be avoided with some organization and guidance.

As an executor, you are obliged to secure and protect the assets of the estate. If you fail to do this and it results in the assets being damaged, lost or stolen then (in the absence of having adequate insurance over the assets covering the loss) you could be held personally liable for the loss or, as the case may be, the reduction in the value of the assets in question. Similar to this executor liability, another liability arises if you fail to properly manage, insure or repair real property (whether commercial or residential) you could be held liable for any losses including loss of rental income.

Executors are required to act prudently in the management of estate assets and investments. If an executor acts without due care and prudence, such as in the case of buying speculative securities or disposing of valuable assets substantially below market value, he or she could be held accountable. In fact, executor liability often arises in this manner.

While executors can take professional advice before making investment decisions, the ability to make these decisions is personal to the executor and cannot be delegated. Therefore any improper delegation of executor duties, such as allowing investment advisers complete scope to make decisions in respect of and deal with the estate’s investments without your supervision, could result in executor liability being imposed on you. The same principle applies irrespective of the assets in question. As such, it would apply equally to allowing someone to freely manage the deceased’s business or property portfolio, etc. If an executor engages a professional to manage some aspect of the estate, the executor must closely supervise the carrying out of those management functions – it is his or her responsibility after all.

As executor, you are responsible for ensuring that the correct people benefit from the estate. If you accidentally make payments or distributions to the wrong people, you could be held personally liable to make good the damage caused by securing the return of the misplaced assets or compensating the beneficiaries accordingly. The level of such executor liability could be quite high, so care must be taken to avoid it.

Taking actions without the proper approval can also expose executors to executor liability. Depending on the proposed action in question, you may require the prior consent of beneficiaries, co-fiduciaries or even a court.

You need to ensure that you have properly attended to the payment of all creditor accounts, including any taxation liabilities. As the executor you are responsible for ensuring these payments are made – to the extent the estate has assets of course.

It should be borne in mind that a beneficiary named under the terms of a testator’s will or even a co-executor can institute legal proceedings against an executor for breach of an executor’s duty or responsibility. The remedies that can be sought by the litigant vary depending on the nature of the alleged breach of duty/responsibility and the specific circumstances involved. If you are subject to any legal claim, you should immediately speak to a lawyer.

How Can EstateBee Help You?

For more information on executor liabilities and probating an estate, check our some of the other articles on our website.

Alternatively, for a more in-depth discussion on probate and executors’ duties, responsibilities and liabilities, check out our book How to Probate an Estate – A Step-By-Step Guide for Executors. This book explores the process from the moment the deceased passes away right through to the distribution of assets. Items such as death certificates, autopsies, funeral planning and asset management are discussed at length. It will show you how to initiate and close probate with ease, learn how to locate and manage estate assets, deal with creditors’ claims, taxes, and trusts, avoid the common mistakes made by many executors, and much more….

If you have any queries about our products or services, please feel free to contact us.

How to Avoid Probate, & the Associated Costs and Delays

Learn about some of the most common ways to avoid the costs and delays of probate.

A Google search of estate planning topics will likely turn up some resources on how to avoid probate. To the casual observer, the reasons for avoiding probate may not seem clear, further, what probate “is” or “entails” may be vague, as well. Most of us have likely seen television dramas or celebrity news stories, which involve protracted court battles over the distribution of an estate. These conflicts, more often than not, are set in probate court and involve a great deal of prolonged legal intrigue. However, these cases are the exception to the rule; rather the reality of the business of probate courts mostly consists of the usually mundane business of sorting out one’s final affairs with little fanfare. If the popular culture depiction of the probate process does not provide an accurate representation what then is probate and what do probate courts do?

What is Probate?
Probate is a legal process whereby the court supervises transferring a decedent’s property after death. The probate court acts as a third party manager making certain the will’s executor carries out the testator’s wishes, follows the required procedures regarding notice and accounting and decides any challenges to how the will is being interpreted or managed by the executor.

Contrary to common perception, probate is not required to transfer property after death; in fact, many decedents’ final affairs are administered without court involvement. However, there are often circumstances involving complicated estates or contested claims, which necessitate probate. Thus, avoiding probate may be desirable as an estate-planning tool; however, in some circumstances avoiding probate may not be possible due to legal requirements, which mandate certain types of estates be submitted to the probate court for disposition. If the option of avoiding probate is available, some estate planners may find avoiding probate an attractive possibility.

Why Avoid Probate?
The two main reasons for avoiding probate relates to time and expense. Simply put, probate courts, like other courts, move at a deliberate pace. Therefore, as more time is needed to dispose of the estate, more legal costs, incur as well. In the end, time and cost ultimately detract from the value of the estate.

How to Avoid Probate?
Whether an estate enters, probate depends on how assets are structured in an estate plan. As a preliminary matter, there is not a single method by which to avoid probate, accordingly one cannot simply state in their will that the estate should not be probated. Rather, each class of estate assets have to be designated in a way that does not trigger the need for the estate to be administered by the probate court. An estate plan should be structured in a manner that exposes the least amount of assets to being administered in probate. Some estate planners may be able to shield all estate assets from probate if the estate is smaller or involves a less complex array of assets. However, the more likely strategy needed to avoid probate would involve structuring the estate so as to keep as many assets as possible under a designation to avoid probate. The following types of assets or arrangements do not require administration by a probate court.

Living Trusts
A living trust is a legal instrument that places assets into a trust while the grantor is still living. Under this arrangement, the grantor serves as both the person establishing the trust and the trustee. Further, a successor trustee is selected to assume trustee duties upon the incapacity or death of the grantor. Upon death or incapacity of the grantor assets in the trust are transferred to designated beneficiaries by the successor trustee. While the grantor is still living, the assets placed in the trust are still accessible, and the trust arrangement can be altered to adapt to changing circumstances. As such, a living trust establishes a way for assets to be held for the benefit of others by a trustee without being placed in probate as the trust instructions provide directions for the trustee to distribute trust assets.

Real Estate Property Held in Joint Ownership
Rather than indicating in a will, that real estate should transfer to an heir or beneficiary, thereby requiring probate court involvement, the property may be titled as jointly owned by co-owners. Under this arrangement, joint ownership of assets includes the “right of survivorship,” whereby the surviving owner of the property is granted full ownership upon the death of a co-owner. Since the transfer of assets is triggered automatically through the right of survivorship, there is no need for probate court.

Transfer-On-death Registration
For estate assets involving real property, such as vehicles, securities, bank accounts and stocks and bonds these assets can be designated as transfer-on-death; whereby the testator remains the owner of the property until death and is then transferred to a designated beneficiary. Transfer of death-designated assets must be recorded like any other deed of ownership. Further, under transfer-on-death arrangements the beneficiary holds no legal title to the property until the owner’s death.

Small Estate
In some jurisdictions, an estate that does not meet a certain valuation threshold does not require administration by a probate court. In this type of circumstance, the representative would normally complete an affidavit to transfer the decedent’s assets to ownership of the estate or any designated heirs or beneficiaries.

Given the disincentives to avoid probate, estate planning should always consider ways in which to protect assets from exposure to the probate process not only as a way to preserve estate assets but also as a way to reduce the time and energy needed to dispose of one’s final matters.

How Can EstateBee Help You?

For more information on living trusts, read some of the other living trust articles on our website.

If you would like more information on how to avoid probate, check out our book Make Your Own Living Trust & Avoid Probate. You’ll learn all you need to know about living trusts, their advantages and disadvantages, the tax implications, the alternatives to living trusts and, of course, how to easily make your own. With detailed information, easy-to-follow instructions, helpful worksheets and all of the forms necessary, we show both individuals and couples how to avoid the otherwise inevitable delays and costs of probate by preparing a revocable living trust and using other simple probate avoidance strategies.

If you have any queries about our products or services, please feel free to contact us.

7 Advantages of Revocable Living Trusts – All You Need to Know…

There are a number of advantages of revocable living trusts. These include the following:-

1. Avoids probate
By transferring assets out of your name and into the name of a revocable living trust, the assets will no longer be deemed to be part of your estate. As such, when you die, there is no need to have these assets go through the probate process before they can be transferred to your beneficiaries.

2. Saves money
By avoiding probate, you can also save your heirs a substantial amount of money in filing fees, costs, attorney fees and executor fees.

3. Avoids publicity
With probate, your will (together with a schedule of all your assets) is filed in the probate registry and becomes a public document open for inspection by the public. By contrast, a revocable living trust is a private contract between you as grantor and you as trustee; and, as there is no public filing requirement, details of your assets and the beneficiaries of same can remain confidential.

4. Provides protection during incapacity
With a properly drafted revocable living trust, if you become disabled or otherwise unable to manage your estate, your revocable living trust avoids the need for a court-mandated conservatorship by nominating a person known as a successor trustee (similar to a guardian) to manage the trust assets during any period of incapacity.

5. Very difficult to contest
The privacy of a living trust makes it difficult to contest by comparison to a will.

6. Management of children’s inheritance
Living trusts, like wills, can contain sub-trusts for the management of property given to children and young adults.

7. Flexible
You can amend the terms of a living trust or even revoke it at any time.

How Can EstateBee Help You?

For more information on the advantages of revocable living trusts, read some of the other living trust articles on our website.

Alternatively, for a more in-depth discussion of the advantages of revocable living trusts, check out our book Make Your Own Living Trust & Avoid Probate. You’ll learn all you need to know about living trusts, their advantages and disadvantages, the tax implications, the alternatives to living trusts and, of course, how to easily make your own. With detailed information, easy-to-follow instructions, helpful worksheets and all of the forms necessary, we show both individuals and couples how to avoid the otherwise inevitable delays and costs of probate by preparing a revocable living trust and using other simple probate avoidance strategies.

If you have any queries about our products or services or the advantages of revocable living trusts, please feel free to contact us.

How to Revoke a Living Trust Agreement, Quickly & Easily

Living trusts can be created as either revocable living trusts or irrevocable living trusts. One of the main differences between the two is that revocation is only possible with revocable living trusts. Revocation is the legal name given to the termination or cancellation of an agreement. In this article, we explain how you can revoke a living trust agreement.

Provided you are not incapacitated, you can generally terminate or revoke a living trust agreement at any time by sending a ‘notice of revocation of a living trust’ to the trustee(s) of the living trust. This is a written legal notice signed by the person who created the living trust (the ‘grantor’) stating that he or she is revoking the living trust and requiring that the trust assets be transferred back to him or her.

In order to revoke a living trust, you must do the following:-

• Firstly, you must, in your capacity as grantor, prepare and serve a notice of revocation on the trustee of the revocable living trust (which is generally the grantor). The notice will inform the trustee that the revocable living trust is terminated and will call for the return of the trust assets to the grantor.

• Secondly, you must arrange for the transfer of legal title in the trust assets to be transferred from the living trust back to the grantor personally.

It’s important to note that with a joint living trust or an AB living trust, notwithstanding that there are normally two co-grantors, either co-grantor alone is legally entitled to terminate the living trust by service of a notice of revocation.

Finally, when revoking a revocable living trust it’s important to ensure that any beneficiary designations which you have made in favor of the living trust are amended. In this respect, you will need to consider items such as pay-on-death accounts, transfer on death securities, life insurance, etc.

How Can EstateBee Help You?

For more information on making a living trust, and how to revoke a living trust, read some of the other living trust articles on our website.

Alternatively, if you would like more specific information on how to revoke a living trust agreement, including sample documents and information on how to transfer assets from your living trust back into your own personal name, check out our Revocation of a Living Trust Kit. The kit, which has been prepared by experienced estate planning lawyers, takes you step-by-step through the process of creating and serving a notice of revocation terminating your living trust. If you want to revoke a living trust, this is your best option.

If you have any queries about our products or services, please feel free to contact us.

What is a Living Will? How Does it Protect Me During Incapacity?

A Living Will is a legal document that allows you to instruct healthcare providers regarding the use or non-use of certain life-prolonging medical procedures in the event that you become terminally ill or permanently unconscious and unable to communicate your own wishes.

The life-prolonging medical procedures in question are sometimes referred to as ‘heroic measures’ and are generally aimed at keeping the patient alive rather than fixing the underlying problem (which is often virtually un-treatable, like multiple organ failures or severe brain damage).

As a general rule, living wills only come into effect if you’re no longer able to make your own healthcare decisions. For example, if you suffer serious brain damage in an accident or suffer an incapacitating stroke, you may be permanently unconscious and unable to communicate your wishes to your doctor. In this case, a living will lets your doctor know your wishes concerning the receipt or non-receipt of certain medical procedures. It also allows you to designate a person who can either enforce or revoke the decisions made in your living will.

Living wills are a fundamental part of estate planning and every good estate plan should include one. They give you a degree of control over your own medical care which is vital part of planning for the future.

How Can EstateBee Help You?

For more information, read some of the other articles on our website.

If you would like to make a living will online, then check out our Online Living Will Software. It allows you to make a your document without the cost or need to engage a lawyer.

If you have any queries about our products or services, please feel free to contact us.

Should You Be an Executor of a Last Will?

While it’s an onerous obligation, the task of being an Executor for a family member or a close friend can be viewed as a final act of friendship. It’s often humbling that someone trusts you sufficiently to invite you to accept this very personal responsibility. In many ways, you should feel honored to have been chosen as executor.

However, having been chosen to act as Executor is not of itself sufficient reason to accept the responsibility especially if you are not 100% committed to the task. In such circumstances, it’s much better for everyone if you decline the job when you are originally asked, rather than for you to half-heartedly agree to act and then decide you can’t do it after the testator’s passing.

Assuming however that you’re willing in principle at least to act as Executor, there’s no reason to refuse to accept the appointment. If you are not quite sure what to do and when to do it, there’s no need to panic. There are numerous Executor guides on how to probate an estate. These books can be a great source of assistance for those acting as Executors of an estate. If you still need more help to probate the estate you can always get the assistance of a lawyer. Remember, the lawyer’s fees will be paid by the estate.

All that said, you may very well have good reason for your hesitancy in serving as executor, even for a close friend or family member’s estate. Are you in poor health generally? Or are you aware that there is a strong possibility of conflict between certain beneficiaries of the estate which you really don’t want to be involved in? Possibly the deceased carried a lot of debt and this is another thing that concerns you? These sorts of things are valid reasons for you to hesitate about accepting or even to reject the role of Executor.

If after taking all of the above into consideration you are still willing to take on the role, remember that the only qualities an Executor really cannot do without are conscientiousness, integrity and common sense! Frankly, if you have an organized mind, are reasonably prudent and are detail oriented, there is absolutely no reason for you to have doubts about serving. Remember you can always seek help from a lawyer or accountant if in the end you find that you need to!

How Can EstateBee Help You?

For more information on executor duties, read some of the other articles on executors, executor duties and probate on this website.

For more information on probating an estate, check out our book entitled How to Probate an Estate– A Step-By-Step Guide for Executors. It explores the process from the moment the deceased passes away right through to the distribution of assets. Items such as death certificates, autopsies, funeral planning and asset management are discussed at length. It will also show you how to initiate and close probate with ease, learn how to locate and manage estate assets, deal with creditors’ claims, taxes, and trusts, avoid the common mistakes made by many executors and much more….

If you have any questions or queries regarding our products or services, just contact our customer service team who would be delighted to assist you.

What is Estate Planning and What Do I Need to Make an Estate Plan?

Estate planning is the process of planning for the management of your estate in anticipation of your incapacity and the disposition of your assets upon death.

Preparing an estate plan is undoubtedly one of the most important steps that you can take in order to ensure that your healthcare wishes are honored should you become incapacitated, and that your wishes regarding the transfer of your property on death are complied with.

While people traditionally believed that a will formed the pillar of a decent estate plan, more and more people now appreciate the value of a comprehensive estate plan. Such an estate plan includes relevant legal devices to transfer property, appoint guardians for children, reduce taxes, avoid probate, provide for the management of their financial affairs during times of incapacity and appoint agents to make healthcare decisions.

A good estate plan should also contain details regarding funeral and burial arrangements.

Irrespective of a person’s age or the size of their estate, a good estate plan can accomplish each of these tasks.

For most people, understanding estate planning options can appear to be quite a demanding endeavor at first glance. However, many of the techniques commonly used are relatively straightforward.

Estate Planning involves the use of Last Wills, Living Trusts, Living Wills, Powers of Attorney for Finance and Property, Healthcare Powers of Attorney and other legal forms. Each of these are explored further on the EstateBee website.

How Can We Help You?

For more information, read some of the other articles on this website.

You can also check out our book Estate Planning Essentials. It introduces you to estate planning and shows you how you can make an effective estate plan quickly and easily without the need for a lawyer. You’ll learn about estate planning devices such as wills, trusts, powers of attorney, medical directives, probate avoidance methods and more. To help you get a fuller understanding, particular attention is paid throughout to beneficiaries, children, disinheritance, incapacity, estate taxes and inheritance taxes. If you want to prepare an estate plan, this book is for you.

If you have any questions about our products or services, please contact our customer service team, who would be delighted to assist you.

What is an Executor of a Will?

Though we’ve all heard the term, most of us have probably never appointed an Executor or been an Executor for somebody else. Therefore, you may be wondering “What is an Executor ”, “What exactly does an Executor do?” and “What’s this Probate thing all about?”

If you die owning property of value, it is necessary to appoint someone to “settle” or wind up your estate in accordance with the terms of your Last Will and Testament. Your Last Will should nominate a person known as an Executor, or Personal Representative, to carry out this role. If you have not made a valid Last Will or where there is a partial intestacy this person will be appointed by the Probate Court and will be known as the Administrator of your estate.

Your Executor can be a person (or persons) such as a relative, beneficiary under your Last Will, a lawyer or even a bank – the choice is yours. It is also possible to appoint one or more Executors under your Last Will. Where more than one Executor is appointed, these Co-Executors can act separately (each one with full authority) or they can be required to act jointly in which case both (or all if there is more than two) executors must agree to a course of action before taking that action.

Upon your death, your Executor will have the legal and fiduciary duty to handle, safeguard and distribute your property in accordance with the terms of your Last Will. In addition, the Executor will also be responsible for the payment of any debts or taxes owing by you at the date of your death. These debts and taxes, if any, will be paid from the estate (using the assets of the estate) before the distribution of the remainder of the estate to the beneficiaries named under your will takes place.

How Can EstateBee Help You?

For more information on executor duties, read some of the other articles on executors, executor duties and probate on this website.

If you have any questions or queries regarding our products or services, just contact our customer service team who would be delighted to assist you.

Archives: Articles

How to Amend a Revocable Living Trust Agreement Without a Lawyer

How Living Wills Work and Protect You During Incapacity

Executor Liability When Probating or Administering an Estate

How to Avoid Probate, & the Associated Costs and Delays

7 Advantages of Revocable Living Trusts – All You Need to Know…

How to Revoke a Living Trust Agreement, Quickly & Easily

What is a Living Will? How Does it Protect Me During Incapacity?

Should You Be an Executor of a Last Will?

What is Estate Planning and What Do I Need to Make an Estate Plan?

What is an Executor of a Will?

Stay on top of the legal issues affecting your estate plan