Posted by Dana Law Group on January 15, 2020
Most people create a will or trust and then forget about it. However, there are a lot of changes that can occur throughout life that require you to make changes to these important documents. Most people either forget about making these changes entirely or think nothing will happen to them, so they don’t make the effort to change them to accommodate the changes that occur in their daily lives. The following are the top reasons you may want to think about making changes to your trust to ensure everything is distributed as you wish if the worst should happen.
Your Children Are Grown
Trusts are written differently when you’re dealing with children who are minors versus when they become adults. For instance, most trusts that name minors as the beneficiary will have stipulations in place that give a responsible adult control over the money to help care for the children. However, adults are often given the money directly instead. You may also need to implement protections if your grown children are married themselves to ensure their inheritance doesn’t fall into someone else’s control.
An Older Trust
Trusts that were created prior to 2012 likely need to be altered. New laws that were implemented at this time could have an impact on how your trust is carried out if you don’t make the appropriate changes. Your lawyer will be able to guide you through this process so your wishes can be carried out as you want.
Protect Your Assets
How much money and other assets you have now isn’t likely to be static over time. For most people, these amounts are fluid. If your assets significantly changes, it’s important to take a look at your trust and make the appropriate adjustments to reflect your current status. There’s no telling when disaster can strike, which is why it’s important to keep this information as up to date as possible.
There are many reasons you may need to change the trustee on your trust. If you determine the individual is no longer fit to manage your assets, you need to change your trust to reflect your new choice. The same applies if the individual you have previously named is no longer available, whether they have passed away, or they are no longer in a position to fulfill your wishes.
You Have More Children
Most parents divide their assets into a trust for all of their children, so they will be taken care of if something happens to them. This is often expressed in percentages, which would change if you have additional children in the future. Each time you have another child, you will need to change your trust to reflect that.
You Are No Longer Subject to Estate Tax
This is one of the least recognized reasons for changing your trust. Occasionally, new laws are passed that increase the minimum amount of assets that would be subject to an estate tax. When these numbers change, you will need to make alterations to your trust to reflect that if you no longer meet the threshold for these taxes.
Your trust is your way of ensuring those you care about will inherit your assets as you wish if something were to happen to you. However, this isn’t something you do once and then no longer review. Instead, you need to regularly review your trust with a lawyer and make adjustments as necessary.