Wasilla You created a Living 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. It needs regular attention to ensure its works when your loved ones need it most!
You wouldn’t wear the same clothes you bought ten years ago without checking if they still fit. Same thing with your estate plan.
Why should you regularly review your estate plan?
Life changes, and your estate plan should too.
Laws change, even if your wishes and intentions don’t.
How Often Should You Review Your Trust?
There is no “one-size-fits-all answer”, but there are guidelines.
Life events should trigger an immediate review, regardless of when you last updated your trust:
- Marriage, divorce, or the death of a spouse
- Birth or adoption of children or grandchildren
- Death of a named trustee, guardian, or beneficiary
- Significant changes in your financial situation
- Moving to a new state, as trust laws vary by state
- Major changes in tax or estate planning laws
What are the Consequences of an Outdated Estate Plan?
One of the most significant risks is that assets you've acquired since creating your trust may not be properly funded into it. Trust funding—the process of transferring assets into your trust's ownership—is crucial for avoiding probate.
An outdated trust can also lead to unintended beneficiaries receiving your assets.
Family conflict is another potential consequence of an outdated trust. Unclear or outdated provisions can leave your loved ones arguing over what you really intended.
Tax consequences can also arise from an outdated trust. Changes in tax laws might mean your trust no longer minimizes estate taxes effectively.
Finally, know that reviewing your trust doesn't always mean you'll need to make changes. Sometimes you'll find that your current trust still perfectly reflects your wishes and circumstances. Even then, the review process is valuable for refreshing your understanding of your plan and giving you peace of mind.
Don't Leave Your Family's Future to Chance
Schedule a plan review with me today and ensure the plan you've created will work exactly as you intend when your loved ones need it most.
This article is a service of Denali Law Group, LLC, a Personal Family Lawyer Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.
