A Trust is a Living Document – Have an Attorney Review What You’ve Got
Trusts are increasingly common tools for probate avoidance, asset protection, and ensuring your financial legacy is protected for the generations to come. However, in our practice, we’ve seen many folks who think that once the trust is signed, their estate plan is done and can be shelved until such time that it is needed. In reality, a trust is a living part of your overall financial plan. It should grow and adapt as your life and the law change.
At Wakefield Law, we have seen firsthand how regular trust reviews can prevent costly mistakes and ensure your plan continues to work exactly as intended.
Your Wishes and Family Dynamics Evolve
Major life events often require updates to your trust. These may include:
Marriage or divorce
Moving to a new state
The birth of a child or grandchild
A child running into financial or personal problems
Changes in relationships or the people you trust to make decisions
An outdated trust may unintentionally exclude loved ones, provide too much too soon for the financially inexperienced. The plan can also include individuals you no longer wish to benefit, or overlook new circumstances that require special planning. A review ensures your plan reflects your current priorities—not the ones you had ten or more years ago.
Your Financial Landscape Changes Over Time
Your assets today may look very different from when you first created your trust. You may have:
Sold or purchased real estate
Changed investment strategies
Acquired a business interest
Received an inheritance
Retired or shifted income sources
These changes affect how your trust should be structured and funded. A review allows your attorney to confirm that your trust still aligns with your financial reality and long-term goals.
The Law Changes—and Your Trust Must Keep Up
Estate planning is heavily impacted by tax and retirement legislation. In recent years, laws like the SECURE Act and its subsequent updates have significantly changed the rules for inherited retirement accounts. These changes directly impact how retirement assets should be addressed within your trust and could dramatically alter distribution timelines and tax consequences.
A trust that was appropriate before the SECURE Act may now create unintended tax burdens or distribution complications for your beneficiaries. Regular legal review ensures your plan remains compliant and optimized.
Trust Funding: The Most Overlooked but Critical Step
Even the best-drafted trust will fail and lead to a probate if it is not properly funded. We’ve spoken with many clients who don’t want a trust because they had a nightmarish situation with a loved one where they had a trust, but they still had to do a probate because some or all of the assets were left out of the trust. Funding means retitling assets into the name of the trust or updating beneficiary designations so the assets pass through the trust at death.
We frequently meet with clients who believe their trust is fully effective—only to discover that:
Real estate was never transferred into the trust
Bank accounts remain in their individual names or list no “TOD” beneficiaries
Brokerage accounts list outdated beneficiaries
Accounts only list spouses as beneficiaries, and do not account for a backup beneficiary in the event a spouse predeceases you (or there is a simultaneous death)
Business interests or LLC memberships were never assigned
A trust review gives us the opportunity to identify what has been funded, what has not, and what additional steps must be taken to ensure the trust will function as intended. Without proper funding, your estate may still end up in probate, defeating one of the primary reasons you created a trust in the first place.
An Investment in Peace of Mind
Periodic trust reviews—ideally every 3–5 years or after major life events—provide clarity, protection, and peace of mind. At Wakefield Law, we make this process straightforward and stress-free. We work closely with clients to update their documents, verify funding, and ensure every detail is aligned with their goals. However, we’ll be just as pleased as you’ll be if we review and find no updates are need this time around.
If it’s been more than a few years since your last review—or if you’re not sure your trust is properly funded—now is the perfect time to schedule a free consultation. A properly funded trust and cleaned up estate is a gift you give to your loved ones – make sure there’s a plan and you won’t leave behind a mess for others to remedy. 703.771.9740