Why You Should Update Your Revocable Trust
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Last Modified
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Apr 12, 2023
What has happened in your life since you signed your revocable trust? Many of us have changing circumstances that cause our estate planning needs to change. Since a living revocable trust is a written legal document that places assets into the trust for a life-long benefit, it makes sense that when a life event changes, so should the trust.
A trust should be updated when any of the following events occur.
- wedding
- Births
- divorce
- purchase or sale of property
- change in residency status
- change in financial status
- change beneficiaries
- death
There is no hard and fast rule on how often you should update your trust. Conducting an annual review of the trust and asset schedule is recommended. In most situations, updates are typically needed every 3-5 years. Circumstances change. There will always be changes in the law, especially the tax laws.
Furthermore, when state statues change documents inside the trust and ancillaries that are state specific will also need to be updated. As the trustee of your trust, you have the right to revoke or amend anytime, if you are mentally competent. Updating your trust is essential to reduce the chances of property passing through probate.
About the author:
Ken R. Ashworth
Founding Attorney of Ken R. Ashworth & Associates
Ken R. Ashworth is the Founding Attorney of Ashworth Law in Henderson, Nevada. He focuses his practice on asset protection, business litigation, estate planning, and tax litigation. Ashworth has practiced law since 1992 and is admitted to the State Bar of Nevada. He earned his J.D. from Pepperdine University School of Law in Malibu, California, in 1990. His work includes advising clients on legal matters involving businesses, estates, asset protection, and tax disputes.
