Living Trusts and Name Changes

Question:

I recently changed my name. Should I update my living trust?

Answer:

If the title of your living trust contains your name (as the title of many living trusts do), you will need to make a new trust, not just update your old one. Making a new trust will require you to transfer your trust property from your old trust into your new one using your new name.

Here's an example:

When Sarah created her living trust, she changed the deed to her house to say that the owner was the trustee of "The Sarah Smith Living Trust." When Sarah changes her name to Sarah Gonzales, she makes a new trust (The Sarah Gonzales Living Trust) and records a new deed showing that the house is owned by the trustee of "The Sarah Gonzales Living Trust."

Making your new trust and transferring the property might require a bit of work (and money), but you'll just have to think of it as one of the many hassles involved with changing your name.

What happens if you don't update your trust? If you don't update your living trust, it will still be valid under your former name. As long as it's clear to everyone involved that the trust is yours, the terms of your trust will still be followed. That said, most life changes that prompt a name change also prompt other changes. For example, if you get married (or divorced), you will likely want to change what property is in your trust or who will get it when you die.

But if you have no other changes to make—if your name is the only thing that's changed—and if you don't anticipate any confusion about your name change, you could consider not updating your trust, allowing your old name to remain on your trust until you have additional changes to make.

If you are set on changing just your name in your living trust, get help from an attorney to get personalized legal advice about the repercussions of doing so.