An older living trust is not automatically invalid or in need of replacement. However, it can become outdated when the law, your family, your assets, or available planning approaches change. A periodic review helps determine whether the trust still reflects your wishes and whether other documents remain coordinated.
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1. Have estate planning or tax laws changed?
Rules affecting estate tax, income tax, California property taxes, powers of attorney, and health care directives may change over time. A trust prepared years ago should be reviewed to see whether its instructions and related documents are still appropriate. The firm's resource on why you should review your estate plan discusses the importance of regular reviews.
2. Has your family situation changed?
Marriage, divorce, deaths, births, serious illness, or a beneficiary's financial or personal difficulties can affect an estate plan. Review whether the people named as trustees, agents, and other decision-makers are still willing and able to act. The firm's article on choosing a successor trustee may help you think through those appointments.
3. Have your assets changed since you signed the trust?
Purchasing or refinancing real estate, opening accounts, or acquiring other property can leave assets outside the intended trust arrangements. Review asset titles and beneficiary designations and read more about funding a California trust. Even a well-drafted trust may not work as expected if ownership records are not coordinated with it.
4. Could different planning approaches better fit your needs?
Your family might now benefit from more tailored instructions for a beneficiary's inheritance, such as protections addressing creditor exposure, divorce, or other personal circumstances. An attorney can explain which options are available, how they work, and their limitations.
How often should I review my living trust?
If your trust is more than 10 years old, a professional review is especially sensible, though age alone does not require a new trust. Kavesh, Minor & Otis invites its clients to review estate plans every three years and recommends an earlier review after important life or financial changes. For more information, register for a free estate planning seminar.
