Major life changes are a good reason to review your estate plan. Marriage, divorce, a death in the family, a new child or grandchild, illness, changes in assets, and changes in the law can all affect whether an existing living trust still carries out your wishes. Even without a major event, periodic reviews can uncover issues.
How do family changes affect my estate plan?
A marriage or divorce may change who you wish to inherit property and who should make decisions on your behalf. A death in the family, a birth, or a loved one's new financial or personal challenges may also change your plans. Make sure that the people named as trustees, executors, and agents remain appropriate for their roles.
Can changes in California law affect an older trust?
Yes. Estate tax, income tax, property tax, and rules affecting powers of attorney or health care directives can change. A document that was suitable when signed should be reviewed in light of current law and your present circumstances. You can read more about why estate plans should be reviewed.
What if I buy property or open new accounts?
Review whether your new assets are properly coordinated with your trust. A purchase, refinance, or new investment account can create a gap between the instructions in the trust and how assets are actually titled. The firm's explanation of how to fund a California trust covers this common issue.
What if a beneficiary needs more protection?
Changes in a beneficiary's finances, marriage, exposure to creditors, or other personal circumstances may call for a different inheritance plan. An attorney can explain whether available planning techniques are appropriate for your family and goals; protections are not automatic or identical in every case.
Does an estate plan need replacement after a certain number of years?
Not automatically. Even a trust that is more than 10 years old may not need to be replaced, but it warrants a professional review. Kavesh, Minor & Otis describes a practice of inviting its clients to review their plans every three years and recommends contacting the firm sooner after significant life or financial changes. Learn more at a free estate planning seminar.
