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Review and Update Your San Diego Trust Every 2 to 3 Years

Why is it important to review and update your San Diego trust every 2 to 3 years?  Once an estate plan is generated and your trust(s) are established and funded aren’t you finished?  The simple answer is no.  Life changes.  Finances change.  The behavior and needs of heirs and beneficiaries changes.  The value of assets, investments and accounts changes.  Tax laws change.  Estate laws are a constant source of discussion in Washington DC.  Life simply isn’t stagnant, and neither is your estate plan or trust.

The experienced estate planning and trust attorneys at Allen Barron will efficiently review and update your estate plan and trust(s) if necessary.  We discuss changes in your life, and the directions and plans contained within your estate documents and trust directives.  One example is the application of an “A-B” trust versus a “Disclaimer” trust.  There is an important distinction here, and based upon changes in the past 3 years it is worth investigating.

In the classic revocable A-B trust (used extensively throughout San Diego and California for years) when the first spouse passes, half of the couple’s assets are placed into an irrevocable trust.  The surviving spouse may not have needed access to these funds or assets.  A disclaimer trust provides more flexibility for the surviving spouse to determine what percentage of assets will be needed.  The rest are “disclaimed” and placed in an irrevocable trust with specific instructions for distribution upon passing of the surviving spouse.

There are risks to a disclaimer trust as well.  The first spouse to pass may wish to ensure their children receive a specific portion of their estate.  If the surviving spouse remarries, a disclaimer trust may allow the new beau to drain financial resources or allocate them to their own children instead of the heirs of the first spouse.  These are sensitive issues that require an experienced estate planning and trust attorney.  We invite you to contact Allen Barron for a free consultation at 866-631-3740.  You should review and update your San Diego trust every 2 to 3 years to ensure all aspects of change have been taken into account.  Learn about changes in the law, and ensure that your wishes are protected.