Creating a living trust is an important step, but estate planning is not always a one-time event.
As life changes, your estate plan should be reviewed to make sure it still reflects your goals, assets, and family circumstances.
Many people create a trust and then store it away for years without thinking about it again. In some cases, that is perfectly fine. In others, important changes may have occurred that warrant an update.
Common reasons to review your estate plan include retirement, receiving an inheritance, purchasing or selling real estate, starting or selling a business, changes in financial circumstances, marriage, divorce, or the birth of children and grandchildren.
Sometimes the trust itself does not need significant revisions. Other times, trustee appointments, beneficiary provisions, or asset ownership may need to be updated.
One issue we frequently see is a trust that no longer reflects a client’s current life. A trustee named fifteen years ago may no longer be the best choice. Assets may have changed substantially. Family relationships may have evolved.
The good news is that most living trusts are designed to be flexible. Changes can often be made through amendments rather than creating an entirely new plan.
At our firm, we regularly help clients review existing estate plans and determine whether updates make sense. A review can provide reassurance that your plan still works the way you intend.
FAQs
How often should I review my living trust?
Many attorneys recommend reviewing your estate plan every few years or whenever a major life event occurs.
What life events should trigger an estate plan review?
Retirement, marriage, divorce, inheritance, major asset purchases, business changes, and the birth of children or grandchildren are all common reasons to revisit a plan.
Can I change my living trust after it is signed?
In most cases, yes. Revocable living trusts are designed to be amended as circumstances change.
What happens if I never update my trust?
Your trust may still be legally valid, but it may no longer reflect your wishes, assets, or family situation as accurately as it once did.