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  • New trust and old will

    My father has a Revocable Living Trust and a Will done at the same time. Rather than amending the trust, due to beneficiaries knowing that dad changed his mind with his assets, he wants a new one. Would he need to do a new will as well? As it states in the will now nothing is mentioned of distribution, only in the trust.

  • #2
    The new trust will govern whatever assets are placed in the trust.
    lwpat
    South Carolina Divorce

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    • #3
      lwpat: My father has a Revocable Living Trust ... Rather than amending the trust, due to beneficiaries knowing that dad changed his mind with his assets, he wants a new one

      If your father amends his existing trust to change beneficiaries, the existing beneficiaries are not going to know their inheritable interest changed unless someone tells them. In any event, if your father wants to alter who receives his assets (e.g., remove a beneficiary or change his/her inheritable interest) what's the big deal if they are made aware of it now - what is it your father (or is it you) want to hide?
      Barry S. Phillips, CPA
      www.BarryPhillips.com

      IRS Circular 230 Disclosure: This response is intended to provide general information and written for educational purposes only. It does not establish a client relationship. This communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to any party any matters addressed herein.

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      • #4
        New Trust and old will

        There is nothing that HE is trying to hide. My father doesn't want to hurt anybodys feelings with what he is now wanting to do with his assets. An amendment to his trust would be attached to the current trust and the heirs would see what was given to them previously. Whether it be more or less.

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        • #5
          Your father should consider revoking vs. amending his existing trust if he is that concerned about an amendment being attached to his existing trust. Establishing a new trust, however, will likely require him to retitle assets out of the name of his existing trust (The Smith Family Trust, dated 01-01-1995) into the name of his new trust (The Smith Family Trusts, dated 02-01-2008) and to change the beneficiary designations on life insurance policies, retirement accounts, etc. if wants his trust to govern the distribution of those assets. As to the will, he may very well need a codicil or an entire new will (depending on his preference) - especially if his existing will is drafted as a "pour over" will (e.g., to pour over any assets inadvertently not titled in the name of his trust into the trust).
          Barry S. Phillips, CPA
          www.BarryPhillips.com

          IRS Circular 230 Disclosure: This response is intended to provide general information and written for educational purposes only. It does not establish a client relationship. This communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to any party any matters addressed herein.

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