Middle-aged couple at home

When Should I Amend My Existing Trust?

By Chris Tymchuck
Founding Attorney

Life is full of changes, and as your circumstances evolve, your trust may need to evolve, too. Have you recently experienced a significant life event, like a marriage, the birth of a child, or a shift in your financial situation? These moments often prompt the need to revisit and update your existing trust. When was the last time you reviewed your estate plan to ensure it still aligns with your current goals and assets? Let’s explore when it might be time to consider making those important amendments.

Major Life Events 

Marriage or Divorce

Changes in your marital status are a significant reason to update your trust. When you get married, you may want to include your spouse as a beneficiary or co-trustee. Conversely, after a divorce, removing your ex-spouse from the trust is essential to avoid unintended inheritance.

Birth or Adoption of a Child

Welcoming a new child into your family is a joyous occasion, and it’s also a key moment to amend your trust. Adding your child as a beneficiary ensures they are provided for according to your wishes.

Death of a Beneficiary or Trustee

If a beneficiary or trustee named in your trust passes away, it’s crucial to update the trust. This ensures that your assets are distributed according to your current intentions and that someone capable is in charge of administering your trust.

Significant Changes in Assets

Acquiring or Selling Property

When you buy or sell significant assets, such as a home, vacation property, or business, updating your trust is essential. Including newly acquired assets ensures they are distributed according to your wishes while removing sold assets prevents confusion or complications for your beneficiaries.

Inheritance or Windfall

Receiving a large inheritance or financial windfall can dramatically alter your financial situation. It’s important to amend your trust to reflect these changes, ensuring that these new assets are accounted for and allocated in a manner that aligns with your current estate planning goals.

Investment Changes

Major shifts in your investment portfolio, such as significant increases in value or reallocations, may also necessitate a trust update. By keeping your trust in line with your financial reality, you can ensure that your beneficiaries receive the intended portion of your estate without any surprises or unintended consequences.

Changes in the Law

Tax Law Changes

Shifts in tax laws, particularly those related to estate taxes, can significantly impact your estate plan. If laws change, your trust might require amendments to ensure your assets are protected and distributed in the most tax-efficient manner.

New Estate Planning Legislation

Legislative changes can also introduce new rules affecting trusts, such as how they’re managed or how assets are distributed. It’s important to review your trust periodically to ensure it complies with current laws and takes full advantage of any new benefits.

Changes in Your Goals or Relationships 

Shifting Priorities

Over time, your goals and priorities may evolve, leading to the need for adjustments in your trust. For example, you might want to support different charitable causes, or perhaps your focus has shifted toward ensuring long-term care for a family member. These changes in your priorities should be reflected in your trust to align with your current intentions.

Changes in Relationships

Relationships with beneficiaries can change over the years. Whether you’ve grown closer to someone or become estranged, it’s important that your trust reflects your current relationships. For instance, you might want to increase the share of a loved one who has become a primary caregiver or remove someone who is no longer a part of your life.

Get Help from Unique Estate Law Amending Your Trust

At Unique Family Law, we can ensure your trust reflects your current life circumstances and goals. Our team will guide you through the process of amending your trust, making sure every detail aligns with your wishes. Contact us today to discuss your trust and how we can help update it.

About the Author
As a Minneapolis Estate Planning and Probate attorney I help build and protect families through the adoption, estate planning, and probate processes. I also have experience working with families on issues related to their small businesses. I know how difficult it is to find time to plan for the future and I am here to help walk you through it.