Review Your Trusts: The When and the How

Review Your Trusts: The When and the How – Common assets placed into a trust include your home, bank accounts and stocks. With a revocable trust, you name yourself as the trustee to remain in control of your assets. When you die, your trust becomes irrevocable and is transferred to a designated beneficiary.

You don’t necessarily create a trust and just forget about it. You may revise a revocable trust whenever your circumstances change. Perhaps you want to add a beneficiary. A trust can be revoked or amended at any time as long as you, its creator, are mentally competent. Having an updated trust will reduce the chances that your property will pass through probate.

Any of the following may impact your trust:

• You have more kids or grandkids.
• As your progeny age, you get to know them better and you may want to change distributions.
• You become newly married or divorced.
• You change residency status — moving to another state or country, for example.
• There’s a change in financial status, such as a substantial increase in net worth.
• You buy property that needs to be added to a trust.
• You refinance a loan that involves property held in a trust.
• A trustee or beneficiary expires.
• One of your trustees becomes seriously ill.
• Your executor or trustee no longer wishes to serve in this capacity.
• New tax laws are passed that impact trust assets.
• You retire.

It makes sense that you will want to address revisions to your trust to reflect domestic matters. Generally, financial advisors counsel scheduling an update every three to five years, with an additional look at your trust’s schedule of assets every five years. After all, laws change all the time.

Another way to look at revisions? A new year is a good opportunity to reflect on any significant changes in your life and to determine whether your plan still meets all your goals. Time passes, and it’s easy to put your plan in a safety-deposit box and forget it.

Although the hard part of setting up a plan is done, it’s a mistake to file it away and forget about it. Although your plan is drafted, there will be changes that may lead to adjustments in your estate plan, including acquiring or removing assets.

Estate planning is an important task that everyone should give proper consideration. You should review your trust as your financial life, your family situation and laws change. If you care about your finances, stay current. You even may want to redo your trust entirely.

Interested in learning more? Join us for a free Estate Planning Webinars. Get registered today!

• Author
• Recent Posts

William Hayes

As an attorney in private practice in Los Angeles County, California William Hayes provides extensive estate and tax planning services to individuals and businesses in Los Angeles, Pasadena, Glendale, Burbank and surrounding communities. Attorney Hayes’ primary focus is to help clients avoid probate, protect their assets, and provide for the security of their loved ones with a well-crafted estate plan. He believes in giving each client the time needed to explain his or her needs and wishes and then dedicates his efforts toward making the client’s desires clear in their final estate plan.

Latest posts by William Hayes (see all)

• Clawing Back Assets After Probate - June 3, 2023
• How to Create a Business Succession Plan - June 2, 2023
• IRS Announces HSA Limits for 2024 - June 1, 2023