Creating a trust is a significant step in estate planning, ensuring your assets are distributed according to your wishes, but it’s not a ‘set it and forget it’ situation. Many clients of Steve Bliss, an Estate Planning Attorney in San Diego, are surprised to learn about the ongoing maintenance a trust requires to remain effective and avoid potential legal complications. A trust, while a robust legal document, needs periodic review and updates to reflect changes in your life, the law, and your financial circumstances. Ignoring these requirements can lead to unintended consequences, delays in distribution, and even legal challenges, potentially defeating the purpose of the trust altogether. Roughly 60% of Americans do not have an updated estate plan, leaving families vulnerable to prolonged probate and unnecessary stress – a statistic Steve Bliss actively works to change.
What happens if I don’t update my trust?
Failure to update your trust can create significant issues over time. Laws change – both federal and state estate tax laws, as well as trust administration rules – and your trust needs to remain compliant. Consider the case of old Mr. Henderson, a retired naval officer who created his trust in 1998. He meticulously planned for his family, envisioning a smooth transfer of his savings and a small seaside cottage. Years passed, and he never revisited the document. When he passed away, the federal estate tax exemption had increased dramatically, and his trust, still operating under outdated calculations, needlessly paid thousands in taxes that could have been avoided with a simple update. This happens far too often, and proactive maintenance is key. A 2023 study by Wealth Advisor revealed that over 35% of trusts experience issues due to lack of updating.
How often should I review my trust?
Steve Bliss recommends an annual or bi-annual review of your trust, or whenever a major life event occurs. These events include marriage, divorce, the birth or adoption of a child or grandchild, significant changes in your financial situation (like a large inheritance or sale of a business), or a change in beneficiary circumstances. During these reviews, assess if your designated beneficiaries are still the individuals you intend to benefit, if your chosen trustees are still capable and willing to serve, and if the distribution instructions align with your current wishes. Think of it like maintaining a vehicle; regular check-ups prevent major breakdowns. Recently, I met with a young couple who had created their trust years ago and then started a foundation. They hadn’t considered how this new charitable endeavor would integrate with their existing trust, and we worked together to amend the document to reflect their evolving philanthropic goals.
What does “funding” my trust actually mean?
Creating a trust document is only the first step; “funding” the trust is crucial. Funding means transferring ownership of your assets – like bank accounts, real estate, stocks, and bonds – into the name of the trust. Without proper funding, the trust remains an empty vessel, and your assets may still be subject to probate, defeating its purpose. I remember a client, Mrs. Davison, who created a beautiful trust but never actually transferred her brokerage account into it. Upon her passing, the account remained in her individual name, and her family faced a lengthy and costly probate process. It’s like building a strong ship but never launching it. According to the American Academy of Estate Planning Attorneys, approximately 20% of trusts fail to achieve their intended benefits due to incomplete funding.
Can my trustee make changes to my trust without my consent?
Generally, your trustee cannot unilaterally make changes to your trust. The trust document outlines the trustee’s powers and responsibilities, and any significant alterations typically require your express consent or a court order. However, there are certain situations where a trustee may petition the court for modifications, such as when unforeseen circumstances arise that make the original trust terms impractical or impossible to fulfill. It’s also important to remember that you, as the grantor, usually retain the power to amend or revoke your trust at any time during your lifetime, as long as you are competent. We worked with a family where the original trust was created before a child was born with special needs. The parents later realized the trust didn’t adequately address the child’s long-term care needs, so we worked with them to create a supplemental needs trust within the existing framework, ensuring the child would receive the support they needed without jeopardizing their eligibility for government benefits. Regular maintenance, guided by an experienced estate planning attorney, is the key to a successful and enduring trust.
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About Steve Bliss Esq. at The Law Firm of Steven F. Bliss Esq.:
The Law Firm of Steven F. Bliss Esq. is Temecula Probate Law. The Law Firm Of Steven F. Bliss Esq. is a Temecula Estate Planning Attorney. Steve Bliss is an experienced probate attorney. Steve Bliss is an Estate Planning Lawyer. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Steve Bliss Law. Our probate attorney will probate the estate. Attorney probate at Steve Bliss Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Steve Bliss Law will petition to open probate for you. Don’t go through a costly probate. Call Steve Bliss Law Today for estate planning, trusts and probate.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
irrevocable trust
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RL4LUmGoyQQDpNUy9
Address:
The Law Firm of Steven F. Bliss Esq.43920 Margarita Rd ste f, Temecula, CA 92592
(951) 223-7000
Feel free to ask Attorney Steve Bliss about: “What’s the best way to leave money to minor children?”
Or “What are the timelines for notifying creditors in probate?”
or “Who should I name as the trustee of my living trust?
or even: “How do I rebuild my credit after bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.