A: When substantial changes are made through a restatement, it simplifies the document and makes it easier for trustees and beneficiaries to understand the trust’s terms without having to navigate through multiple amendments. Also, from a legal standpoint, restating a trust can ensure compliance with current laws and estate planning practices, which might not be as effectively accomplished with simple amendments.
In terms of beneficiary rights, a restatement can provide privacy regarding the changes made over time. For instance, if beneficiaries are added or removed, a restated trust only requires the sharing of the most current document after the grantor’s death. Conversely, if only amendments are made, beneficiaries might be entitled to see all historical amendments, potentially leading to disputes or misunderstandings.
