You’ve taken the important step of creating an estate plan, and it includes a trust—congratulations! This shows you care deeply about keeping your family out of court and conflict, ensuring your wishes are known and honored, and you do not want to leave behind a mess for the people you love. Great work. But here’s something you may not realize: an estate plan, a will, or a trust isn’t a “set it and forget it” type of thing. Your estate plan is a living set of documents and tools that need regular attention to ensure they work when your loved ones need them and that they don’t fail at the worst possible moment.
Think of it this way: would you still wear clothes you bought 10 years ago? Probably not. Similarly, your estate plan needs regular reviews to stay current. Similarly, your estate plan, including your trust, needs to be reviewed regularly to ensure it still “fits” your current life situation, assets, the law, and your wishes. Let’s explore why regular estate plan reviews are so crucial and how often you should be checking in on your plan.
How Life Changes Affect Your Trust
Life changes constantly, and your trust must keep pace. Over time, you may experience personal or financial changes that could impact how your trust functions.
Key Life Changes That Necessitate a Trust Review:
- Marriage or divorce
- Birth or adoption of children or grandchildren
- Significant financial changes like a new business or inheritance
- Relocation to a new state with different trust laws
These milestones affect your family structure, your wishes for asset distribution, and who will benefit from your estate. For example, after the birth of a grandchild, you may want to update your trust to include them as a beneficiary. Similarly, if you’ve gone through a divorce, you’ll want to remove your ex-spouse from your trust.
Financial changes also matter—whether it’s buying new property, starting a business, or receiving an inheritance. If these assets aren’t properly included in your trust, they may go through probate, which defeats one of the primary reasons you created a trust in the first place.
Relationships Matter, Too
People change, and so should the people you trust with your estate. If the person you originally appointed as a successor trustee is no longer the best choice, your estate plan should reflect that.
The Legal Changes You Need to Keep in Mind
Even if your personal situation has remained relatively stable, however, the legal and tax landscape constantly evolves. Tax laws, in particular, frequently change, which can have significant impacts on your estate planning.
How Legal Changes Impact Your Trust:
- Tax reforms: For example, the Tax Cuts and Jobs Act of 2017 doubled the federal estate tax exemption, altering how many people approach estate planning.
- State law changes: Trust laws vary by state, and these changes could impact the way your trust is administered or the rights of beneficiaries.
By regularly reviewing your trust, you ensure that it complies with the latest laws and takes full advantage of any beneficial changes.
Content Structure & Readability
Regular reviews are essential, even if you don’t think anything significant has changed. Here’s how often you should review your trust:
- Every 3 to 5 years: A baseline schedule ensures you’re not overlooking gradual changes in your life, assets, or the law.
- After key life events: These should trigger an immediate review, regardless of when your last update was.
Key Events That Require an Immediate Review:
- Marriage, divorce, or death of a spouse
- Birth or adoption of children or grandchildren
- Death of a named trustee, guardian, or beneficiary
- Significant financial changes (new property, inheritance, etc.)
- Moving to a new state with different trust laws
- Changes in tax laws or estate planning regulations
The Consequences of an Outdated Trust Can Be Severe
Failing to update your trust regularly can lead to unintended consequences. These can range from financial losses to family disputes. Here’s what can go wrong:
Common Risks of an Outdated Trust:
- Asset misallocation: New assets may not be included in the trust, causing them to go through probate.
- Unintended beneficiaries: Outdated trusts may direct assets to people you no longer wish to benefit from your estate.
- Family conflict: Ambiguities or outdated provisions can lead to disputes between your loved ones.
- Higher taxes: Tax laws may change, and without updates, your trust may fail to minimize estate taxes, leaving your beneficiaries with a larger tax bill.
Even if you don’t make any changes, the review process gives you peace of mind and reassurance that your trust still works for you.
Don’t Leave Your Family’s Future to Chance
Your trust is more than a legal document; it’s a reflection of your care for your loved ones. Regularly reviewing your trust shows that same commitment and helps avoid confusion, conflict, and expensive legal battles when your loved ones need it most.
I understand that reviewing your trust might not be the most exciting task, but as your Personal Family Lawyer®, I am here to make this process as easy and painless as possible. Once we’re working together, I build regular reviews into my service to ensure your estate plan is always current and effective.
Schedule Your Trust Review Today!
Your family’s future deserves your attention. Don’t leave it to chance—schedule a trust review today to make sure your estate plan works exactly as you intend when your loved ones need it most.
