Do I Need to Revoke or Cancel My Old Trust Before I Create a New Trust?
Full Question:
Answer:
The making of a later trust does not automatically void an earlier trust unless so stated in the trust document. In order to make changes to a revocable living trust, a person may sign a Trust Amendment that's valid under applicable state law; or sign a complete Trust Restatement that's valid under applicable state law.
A Trust Amendment changes specific provisions of a Revocable Living Trust but leaves all of the other provisions unchanged, while an Amendment and Restatement of Trust completely replaces and supercedes all of the provisions of the original Revocable Living Trust.
Please see the following CA statutes:
15401. (a) A trust that is revocable by the settlor may be revoked
in whole or in part by any of the following methods:
(1) By compliance with any method of revocation provided in the
trust instrument.
(2) By a writing (other than a will) signed by the settlor and
delivered to the trustee during the lifetime of the settlor. If the
trust instrument explicitly makes the method of revocation provided
in the trust instrument the exclusive method of revocation, the trust
may not be revoked pursuant to this paragraph.
(b) Unless otherwise provided in the instrument, if a trust is
created by more than one settlor, each settlor may revoke the trust
as to the portion of the trust contributed by that settlor, except as
provided in Section 761 of the Family Code.
(c) A trust may not be modified or revoked by an attorney in fact
under a power of attorney unless it is expressly permitted by the
trust instrument.
(d) Nothing in this section limits the authority to modify or
terminate a trust pursuant to Section 15403 or 15404 in an
appropriate case.
(e) The manner of revocation of a trust revocable by the settlor
that was created by an instrument executed before July 1, 1987, is
governed by prior law and not by this section.
15402. Unless the trust instrument provides otherwise, if a trust
is revocable by the settlor, the settlor may modify the trust by the
procedure for revocation.