Since trusts do become stale over time many people restate their trust. A restatement is a super amendment to the trust. The restatement supersedes the previous trust entirely. So, people want to know…can I throw out my old trust?
- Alice lost her husband. She went to the bank with her restatement trying to get herself named a sole trustee on the bank account. The restatement clearly named her as sole trustee. But the bank wanted to know more. It wanted to know if Alice and her husband had the right to amend the original trust in the first place. Fortunately, Alice still had the old trust and yes indeed the trust could be amended. Imagine the hassle had she thrown out her old trust.
- If for any reason a court should find that a will or trust is invalid, the immediately preceding Trust or Will would become effective. If there is a lawsuit challenging the validity of a Will or Trust, then the previous will or trust may become the operative document if the current documents are found to be invalid. Additionally, the previous versions of the trust may designate who has the legal standing to bring a lawsuit and it may also help to clarify later amendments or restatements.
For these and many more reasons keep your old trust and will and all amendments. These historical documents are extremely important