So, you met with your estate planning attorney. You signed your trust, wills, and other related documents. Mission accomplished? Not quite. There’s more to be done, once the documents are executed and then periodically thereafter,
your trust needs to be nurtured, just as if it were a pet puppy or cat. (It’s not called a “Living Trust” for nothing.)
First, your trust has to be fed. By that, we mean that it has to be funded. You have to change title on your personal assets, transferring them to the Trustee of your trust. (In most cases, that’s yourself). Later on, when you acquire additional assets, whether an inheritance, significant bank accounts, an investment or a new house, they have to be properly vested in the same manner.
Next, you wouldn’t let your puppy run loose all over the neighborhood. Similarly, you have to keep your estate planning documents safe and secure. Ideally, original documents should be placed in a safe deposit box at your bank. You might give box access to your successor trustee or a trusted relative, if you wish. Retain copies of all your documents at home, for ready reference, in a logical place so that you can access them when you wish. Keep a note with these copies, indicating where the originals are located. (Nothing drives beneficiaries crazier than finding copies of wills and trusts but not knowing where the originals are.)
Just like pets, trusts deserve your attention – not daily but every year or so, or whenever there’s a major change in circumstances. You should review the trust’s dispositive provisions and the list of successor trustees, to be sure that both are up to date and in keeping with your wishes. If necessary, arrange to make amendments to incorporate any desirable changes. One of the beauties of the revocable living trust is its flexibility. Do take advantage of that fact, by keeping it current.
As you would a pet, take care of your trust. Call your accountant and attorney at least every few years, to ask if any changes in the law would require amendments to your estate plan.
With a minimum of time, attention and cost, your estate planning documents will serve you well, and provide peace of mind.
Jerry Kessler practices law in Santa Clarita. For more information, please call 661-255-1001.