2024 California Law Update on the Required Method of Amending Your Trust
In our October 2022 newsletter, we shared two cases where the law was unclear on the legally required method of amending your trust. There were two cases in the California appeals court system that came to different conclusions. A few others have entered the fray since and added further confusion to the matter. First, a quick recap.
The California Supreme Court took on the appeal and has finally decided to settle this ambiguity in the law. In 2022, it was well settled law that one can modify their trust in any way they choose by including instructions in the terms of their trust. Meaning, if you say my trust may be amended through “X” process, this is the process that will be legally enforced by the court.
There is also statutory law that “fills in the gaps” of your trust should the language not explicitly define how the trust can be amended. This law allows for your trust to be amended according to the process the legislature defined.
The problem is, which process controls if there is a conflict or an ambiguity, or if you did not fully adhere to the method indicated in your trust, or if you chose to follow the statutory method instead?
Now, in 2024, we finally have an answer. The court established that a trust can be changed using the procedures outlined in Probate Code §15401, which typically involve revocation (cancellation) of the trust, unless the trust document specifically outlines a different method for making changes and clearly states that it’s the only way changes can be made, or if it explicitly says that revocation procedures cannot be used for making changes.
If you would like to make changes to your trust or have questions regarding the process, don’t hesitate to reach out.