A revocable (or living) trust is a cornerstone of a solid estate plan. It allows your loved ones to avoid the delays and costs of probate while ensuring your assets are distributed according to your wishes. But a trust isn’t something you can set and forget — updates may be essential to keeping it accurate and effective.
If you experience any of the following life events, it may be time to review and amend your trust. And fortunately, making changes to a trust is generally straightforward.
Death of a Key Person
If a key person in your trust dies – trustee, beneficiary, etc – it’s important to revisit your trust. Even if you named backup individuals, it’s a good idea to confirm those choices are still appropriate or designate new ones, if needed.
Divorce
Divorce has a major impact on your estate plan. If you and your spouse separate or divorce, the joint trust should be revoked and new estate plans be drafted and executed as soon as possible. Divorce may also affect guardianship decisions for minor children. For example, if you appointed a married couple as joint guardians and they separate, you will need to name new individuals who can provide stable care.
New Additions to the Family
A birth in your family can affect your estate plan, even if it is not the birth of your child. The birth of a grandchild, niece, or nephew or any new family member may affect the way your assets should be distributed. You may have made provisions for nieces, nephews, godchildren, cousins or grandchildren in your trust. If you have a birth in your family, review your trust to ensure that the birth does not affect distributions.
Changing Your Trustee
A common trust amendment is to change the successor trustee. Relationships and circumstances evolve over time and your trust should reflect that. Whether due to a trustee’s death, a falling out, or simply a change in preferences, updating your trust to reflect your current wishes is crucial.
Change in Beneficiaries
A primary reason for a trust amendment is to change beneficiaries. Whether due to birth, death, marriage, divorce, or changes in family dynamics, your list of beneficiaries – and how much each receives – may need to be adjusted. For example, after a divorce, you’ll likely want to remove an ex-spouse from your trust and reallocate those assets to others.
Need Help Reviewing or Updating Your Trust?
Even if there hasn’t been a major life event, it’s a good idea to review your trust every few years. Ensure the trustees and successors you named are still willing and able to serve and that the transfer of property to the trust is still viable. Confirm your property listings are current. And verify the payout structure still matches your wishes.
Updating your trust is typically clear and cost-effective. If you’re unsure where to begin, at HH&J, we make the process simple. We offer a free consultation to review your current trust and help you identify any necessary changes. Whether you’re navigating a major life change or simply haven’t reviewed your documents in a while, we’re here to help you keep your plan current – and your legacy protected.