A living trust can help you manage your property during your lifetime and explain what should happen to your property after your death. Many people choose a revocable living trust because it gives them flexibility as their lives change.
If your family, finances or personal goals have changed, you may wonder if you can update or cancel your trust. In Michigan, the answer usually depends on the type of trust you created and your situation.
When can you change your trust?
Michigan law generally lets you change a revocable trust unless the trust says otherwise. Your trust document may also explain the steps you should follow. You can add or remove property, choose different beneficiaries or appoint a new successor trustee.
You may want to review your trust after major life events. Marriage, divorce, the birth of a child or grandchild or a major financial change could affect your plan. Even if your life has stayed the same, reviewing your documents from time to time can help you spot areas that need attention.
Keep in mind that under Michigan law, a trust executed on or after April 1, 2010, is legally presumed to be revocable and amendable by the settlor unless the trust terms expressly declare it irrevocable.
When can you revoke your trust?
You can often cancel a revocable living trust while you are alive if you still have the legal capacity to make decisions. Michigan law also generally lets you revoke your trust, although the trust agreement may explain the steps you should follow.
To change or revoke a written revocable trust in Michigan, follow the method described in the trust. If the trust does not include a method, you must sign a separate written document that clearly shows your intent. After you revoke the trust, you may also need to transfer the property back into your name.
An irrevocable trust works differently. Once you create it, changing or ending it can become much more difficult. Sometimes you may be able to modify or end it, but the rules are often more limited and may depend on the trust terms or other legal requirements.
Why should you review your documents carefully?
Before you make changes, you may want to understand how your trust works with your will, beneficiary designations and other estate planning documents. If you update one document but not the others, you could create confusion or get results you did not expect.
If you are considering changing or revoking your living trust, review your overall estate plan to see whether your documents still match your goals and your family’s needs.
The importance of updating your estate plan
Life is unpredictable. As time passes, your estate plan can change to reflect new developments. Reviewing your estate plan from time to time can help keep your documents up to date and aligned with your wishes. When you stay involved in your planning, you can build a plan that can support you and the people who matter most.