A living trust is an important document for many. These documents ensure that your assets are protected and dispersed as you desire. When you set up your living trust, you probably think it is set in stone. However, that is not always the case. Life changes, as do circumstances. When changes occur, you'll need to update your trust.
So when exactly should you update your trust? Here are four situations that require it:
1. Someone Moves
A key time to change or update your trust is whenever someone on the trust moves. This might sound like a hassle, but it is important. After all, different states have different laws. So if you, or anyone on the trust, moves to a different state, be sure to update your trust quickly.
2. New Children or Spousal Changes
You should also update your trust whenever you get a new relative. Whether you had a child or a family member has had a child, consider updating your trust if you want them included. Additionally, be sure to update your trust if there have been any spousal changes. Both marriages and divorces can impact your trust. So whether you want to add or remove somebody, make sure you do so quickly so that your assets go to the right people.
3. You Want To Change How or When Assets Are Distributed
You should also change your trust whenever you want to change when or how your assets are to be distributed—for example, if you want to ensure your children use the funds for schooling. You can adjust your trust to ensure that your children cannot use the funds until they are of age. You could also adjust the trust so that they can only get the money during their school years. Whether you want the funds used for specific purposes or you want to impose an age limit, updating your trust will ensure your funds are used as you wish.
4. It Hasn't Been Updated In Awhile
Finally, you should consider having a trust lawyer look over your trust periodically. If it hasn't been looked at in years, definitely have your lawyer give it a good look. Over time, laws change. In addition, specific terminology may change. If outdated laws or terminology are used in your trust, your successors may have issues. So having it looked over periodically is a good plan.
While you might have thought that your trust would never change, life is messy. Whether you simply want to overhaul or simply update your trust, consider doing it whenever these situations present themselves. If you do not know how to do it yourself, don't worry. A trust lawyer can help you make any adjustments or changes that you require. Contact a law firm like the Wright Law Offices, PLLC for additional information.Share