How often should you review your will or living trust? There’s no firm rule on this, but common sense applies.
You should probably reread your estate planning documents yearly, or whenever you review your financial plan. (Unless you are indigent and intend to stay so, or single, childless and so wealthy that money is of no further interest to you whatsoever, you probably need at least some kind of financial plan, a budget and a summary of your investment goals, however modest. Your attorney or tax advisor can refer you to a financial planner who can assist you in developing and implementing a suitable plan.)
Review your will or trust whenever there’s a change in your “cast of characters”, including your family and other beneficiaries and your personal representatives. The birth of a child or grandchild, or the death or disability of any beneficiary, may provide a reason for you to change your estate planning documents. Personal representatives (trustees of your trust and executors of your will) should be chosen based upon their integrity, specific abilities, understanding of your needs and wishes, availability and willingness to serve. If cousin Charlie is no longer personally close to you, or if he has moved to Afghanistan, or has dementia, or has recently been convicted of embezzlement, do you still want him to be your second Successor Trustee?
Changes in personal or family circumstances also invite a revision of bequests. These might include:
•A divorce.
•A serious illness or accident affecting you or a loved one.
•A receipt of a substantial inheritance, by you or a beneficiary.
•A financial reversal, a divorce or any other event impacting on a beneficiary’s need for inheritance.
• Evidence that a beneficiary is, in your own opinion, undeserving or unable to handle wisely a proposed inheritance.
A well-drafted will or trust may already provide for these and other contingencies. If a change is required, however, the cost of preparing an amendment to a trust or a codicil to a will is usually insignificant, compared to the benefit of knowing that your wishes will be clearly documented.
Jerry Kessler practices law in Santa Clarita. For further information about living trusts, wills and probate, you may call him at 661-255-1001 for a confidential consultation.
