Do I Need to Update a Trust Fund in California?

grandmother who chose to update a trust to include granddaughter

When you have a family, you do what you can to provide for them. However, there will come a day when you will be unable to do so. Luckily, you can invest in a trust fund to take the necessary steps to pass assets and funds to your beneficiaries after your passing. It’s essential to note that you must review and update your trust fund. The following blog explores what you need to know about updating your fund and how a Woodland Hills trust attorney can help you through this process.

What Is a Trust Fund?

A trust fund is a legal document that allows you to place property, funds, assets, and stocks on hold until the trust’s conditions have been met. Once the terms are satisfied, the property can be distributed to the intended beneficiaries. Generally, people choose to place assets in a trust as they will not have to go through the probate process and do not inherit heft estate tax.

The agent responsible for distributing assets to beneficiaries are known as trustees. They manage the assets, such as maintaining a property and making decisions based on the provisions of the trust.

How Often Do You Need to Update a Trust Fund?

Generally, it’s best to review your trust fund at least once a year to ensure the terms and conditions accurately represent your wishes.

However, you do not need to update your trust fund once a year. You should update the terms and conditions of the document when there are significant life changes that influence the outcome of your trust. Generally, when new children enter your family, whether they are children, grandchildren, nieces, or nephews, or you get married, purchased a new property, or other significant life changes occur.

What Information Should I Review?

You should review the terms and conditions within your trust. For example, you had established that your grandchildren, Jane and John, would receive your beachfront property once both graduated college. However, after your annual review, you realize this is no longer possible because John decided not to go to college but instead chose to pursue a different career path. You still wish for your grandchildren to inherit the property, so you change the provision so they can receive the home when they both reach 25 years of age.

It’s also essential to ensure any grandchildren, nieces or nephews, or anyone else who you may not have been around initially are included when you review and update the will. This allows you the peace of mind that your loved ones will be cared for after your passing.

If you have questions or concerns about your trust fund, the Law Offices of Yacoba Ann Feldman can help. Our dedicated legal team can help steer you in the right direction when creating, reviewing, or updating your estate plan. Contact us today for more information.

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