When Should You Review Your Trust? Kerrville Trust Planning Essentials

Trust planning is a critical component of a well-rounded estate plan, especially for those who want to protect their loved ones and assets in Kerrville. But trust plans, just like life, need regular updates to reflect changes. As a general rule, you should review your estate plan and trust every other year, according to the article “Revisit trust on a regular basis” from the Santa Cruz Sentinel. This article will walk you through key times to review your trust to keep your estate plan relevant and protect your family’s future.

Key Times to Review Your Trust Plan

1. Family Changes – Marriages, Divorces, and New Family Members

Your trust plan may need to be updated to reflect shifts in your family’s makeup. For example, if you’ve had a marriage, divorce, or a new child or grandchild, reviewing your trust ensures these relationships are acknowledged in your estate. If any of these events have recently occurred, updating your trust with the assistance of an experienced estate planning attorney will protect your family’s future. Read more in our article, A Guide to Wills and Trusts for Single Parents

2. Changes in Trustees or Beneficiaries

Sometimes, those you initially chose to manage your trust are no longer the best fit. Whether a trustee has moved away, is no longer capable, or simply isn’t the best person for the role anymore, you should regularly review your choice. It’s also essential to make sure that your trust beneficiaries are up to date, particularly if family dynamics or needs have shifted over time.

3. Significant Financial Changes

Did you recently purchase a home, receive an inheritance, or start a business? These types of financial changes can greatly impact your trust’s effectiveness. An outdated trust might not include these valuable assets, leaving them exposed to probate or taxation. Regular trust updates help make sure all assets—new and old—are protected.

4. Relocation to a Different State

Estate planning laws vary widely from state to state. If you’ve recently moved to Texas, or specifically to Kerrville, your trust may need to be updated to meet local regulations. This ensures your plan remains valid and provides the protection you intended. Texas has its own estate and trust laws, which means a move may make certain revisions essential.

5. Updates in State or Federal Tax Laws

Estate tax laws change regularly, which may affect the tax implications of your trust. New laws could mean there are better ways to structure your trust to minimize tax burdens for your heirs. An estate planning attorney will understand these complexities and help you structure your trust accordingly.

Core Areas to Revisit in Your Trust Plan

“Successor Trustees” and Trustee Guidelines

Is your named trustee still the best person to manage your estate? Life can bring unexpected changes, and a person you once trusted with this responsibility may no longer be your best choice. Check your trust document to make sure it accurately lists and describes the responsibilities for successor trustees. Having the right trustee protects your assets and minimizes family conflicts.

“Disposition on Death” Clauses

These clauses address how your assets will be distributed after your death. But circumstances may have changed since your initial trust setup. For instance, if you have a special needs beneficiary who now receives government benefits or has financial challenges, updating these clauses ensures your trust supports their specific needs without negative impacts. Consulting with a qualified attorney can help structure your trust to support your loved ones effectively.

“Schedule of Trust Assets”

One commonly overlooked area is the list of assets in your trust. If you’ve recently moved or acquired new property, make sure these assets are included in your trust. Any omissions could mean these assets go through probate, which is often costly and time-consuming for your heirs. Review this list with your attorney every few years to ensure all significant assets are protected.

Taking Action: Keep Your Trust Plan Current

Reviewing your trust isn’t just a one-time task. Life changes, and so should your estate plan. At McCammon Law, we provide personalized trust planning services in Kerrville to keep your plan current, comprehensive, and legally effective. Our clients appreciate the guidance and peace of mind they gain from knowing their estate plan is both thorough and up-to-date. Read more in our article, Reviewing Your Estate Plan Protects Goals, Family.

How McCammon Law Can Help

At McCammon Law, we understand the unique trust planning needs of Kerrville residents. We know the challenges of managing trust assets, selecting trustees, and aligning a plan with Texas law. Here’s how we can help:

• Comprehensive Trust Reviews: Our Estate Planning Attorney Shawn McCammon ensures your trust reflects your current family structure, financial status, and state laws.
• Trustee and Beneficiary Updates: We work with you to select or update trustees and beneficiaries that align with your goals.
• Asset Protection and Inclusion: New assets deserve the same protection as existing ones; we ensure your entire estate is included and shielded.

With years of experience in Texas estate law, we are dedicated to making the process of updating or creating your trust as smooth and effective as possible. Request a consultation with McCammon law to schedule a review of your trust or ask about how to create a plan to protect you and your loved ones.