If you’ve taken the steps to create an estate plan, you’re ahead of more people than you would think! Unfortunately, planning for what may happen after passing is something many people put off due to its sad and morbid nature. While taking the time to create these documents is better than nothing, it’s also essential to review and update a trust fund every so often. Keep reading to discover how a Putnam County trusts attorney can help you with any questions you may have.
How Often Should You Update a Trust Fund?
A trust fund is a document that allows you to place assets and funds on “hold” until the terms and conditions of the trust have been met. Once they are reached, the trustee, or entity responsible for managing the trust and assets inside, will distribute to the beneficiaries.
Generally, you’ll want to review the terms and conditions of your trust at least once a year to ensure it still aligns with your values and wishes. However, this does not mean you’ll need to update it every year! It’s best to update your trust fund when you’ve experienced significant life changes or the terms no longer reflect your wishes.
What Situations Warrant an Update?
As previously mentioned, it isn’t necessary to update a trust fund every time you review it, but only after significant life events occur or you wish to change the conditions in the document. For example, you may welcome a grandchild into your family that you want to include in the trust. Amending the trust is the only guaranteed way to ensure that this child will receive the assets you intend for them to have.
Similarly, you may realize that the terms of your trust fund no longer represent your wishes. For example, if you have decided you want your daughters to inherit your property only after they’ve both graduated from college, it may not be plausible when one daughter decides not to go to college but instead wants to pursue another career path. As a result, you may want to update the terms of the will to change how they can inherit the assets.
What Should I Do if I Want to Change the Trust?
If you want to change the terms of your trust or modify the document in any way, you’ll need the assistance of an experienced estate planning attorney. Unfortunately, failure to complete this process properly can invalidate the trust, leaving the assets inside vulnerable.
When you need help, the Law Office of Andres D. Gil, PLLC is here. Our dedicated legal team has the experience you need to guide you through any questions, comments, or concerns you have with your trust. Contact us today to learn more about how we can help you.