When Should You Review Your Trust?

Creating a trust is an important step in protecting your family and your wishes. But a trust is not something you create once and never think about again.

Life changes. Businesses grow or change ownership. Investments fluctuate. Real estate is bought and sold. Families grow through marriage, children, and grandchildren, or change through divorce. Financial setbacks and shifting priorities can also alter long-term plans. 

When those changes happen, it's worth asking one simple question:

Does my trust still reflect my life today?

Why a Trust Should Be Reviewed

A trust is created based on your circumstances at a specific point in time. It reflects your assets, your family, and your goals as they existed when the document was signed. As those circumstances change, your trust may need attention as well.

That doesn't necessarily mean starting over. But it does mean making sure your plan still works the way you intended.

What Financial Changes Can Affect

A significant change in wealth can affect more than just the value of your estate.

For example:

• New investments or property may never have been transferred into the trust.

• Distribution provisions that once made sense may no longer reflect your family's needs or your philosophy regarding wealth and your beneficiaries.

• Tax planning strategies that worked years ago may no longer be appropriate.

• As your estate grows, the role of your trustee often becomes more demanding, making it worth reconsidering whether the person, bank, or trust company you originally selected is still the right fit.

  
  

Even positive financial changes can create new planning opportunities or challenges that weren't considered when the trust was first established.

Your Trustee Can Only Follow the Trust You Created

Many people assume their trustee can simply adjust as circumstances change. In reality, a trustee is legally obligated to follow the terms of the trust as written.

If your financial situation has changed but your trust has not, your trustee may be required to administer a plan that no longer reflects your intentions or even current tax laws. That's one reason regular trust reviews are so important.

When Should You Review Your Trust?

A review is worth considering whenever there's a significant change in your life or finances, including:

• A substantial increase or decrease in your wealth

• Buying or selling a business

• Purchasing additional real estate

• Marriage, divorce, or the birth of children or grandchildren

• A change in family relationships

• A move to another state

• A change in your long-term financial goals

• Change in estate tax statutes

  
  

Even if none of these events have occurred, reviewing your trust every few years can help ensure it still aligns with your wishes.

A Small Review Today Can Prevent Bigger Problems Later

Not every financial change requires major revisions to your trust. Sometimes the solution is simply updating assets, reviewing beneficiary designations, or confirming that your trustee and estate plan still reflect your goals.

The important thing is not to assume your trust automatically keeps pace with your life. Taking time to review your plan now can help ensure it continues to protect the people and legacy you've worked so hard to build.

At inTRUST Counsel, we work with individuals, families, and their advisors to help ensure trusts continue to serve the purpose they were created for. If your financial circumstances have changed and you're wondering whether your trust should too, we're happy to help you understand your options.