While creating an estate plan is a great way to secure peace of mind for the future, you’ll want to take additional steps to improve your chances of ensuring that your wishes are met after you pass. Ensuring you review and update your trust fund can help your beneficiaries receive the assets you left to them. If you’re unsure how often you need to update your trust fund, you’ll want to keep reading to learn more about the best time to invest in this process and discover how a Washtenaw County trusts attorney can help you navigate this modifying your trust.
What Is a Trust Fund?
A trust fund is an estate planning tool that allows you to put certain assets on hold until the terms and conditions of the fund are met. Then they will be distributed to the named beneficiaries.
Trust funds will also be managed by an individual, known as a trustee, who is responsible for maintaining and distributing the assets in the trust.
How Often Should I Review and Update a Trust Fund?
In general, you’ll want to review your trust fund annually. This allows you to ensure that your wishes align with what’s in the document. There may be changes in your life that arise that slip your mind until you notice their absence in the trust. Reviewing every year allows you to make changes as necessary.
However, reviewing the fund annually does not mean you will need to update it as often. Instead, you’ll want to make a change when a significant life change or event happens that could influence the outcome of your trust.
What Warrants Updating?
When anything substantial occurs in your life that could influence how your assets are distributed, you’ll want to update your will. For example, if you purchase a new property, you may want to include it in the trust for your beneficiaries after your passing. Similarly, if your daughter gives birth to the first grandchild, you can update the fund to name them as an inheritor.
After review, you may also discover that the terms and conditions of your fund no longer reflect your current wishes. For example, you may have stipulated that your grandchildren must graduate college before they can receive their inheritance. However, if two of your grandchildren decide not to go to university and pursue another career path, you may want to alter this so they can still receive the intended assets. Instead, you may modify the trust so they can receive the funds once they reach age 25.
When you need to update your trust fund, Collis, Griffor & Hendra can help. Our dedicated legal team can answer any questions you may have about modifying your trust or creating one if you haven’t done so already. Contact us today to learn more about how we can help you.
