How often should you update a trust fund in Pennsylvania?

woman who updated a trust fund to include granddaughter

Creating an estate plan is something that many put off until it’s too late. If you’ve already taken the time to establish a will, set up a trust fund, and grant power of attorney to someone, you may think you’re in the clear. While having these documents established is better than nothing, you may not realize that you need to review and update a trust fund to ensure that it accurately reflects your wishes. If you’re unsure how often you should revisit and update your fund, you’ll want to keep reading. You’ll also discover how PA trust attorneys can help you navigate this process.

How often should you review and update a trust fund?

In general, it’s best to review your trust fund once a year. However, this does not mean it needs to be updated annually! Revisiting the terms and conditions of a trust fund allows you to ensure that it accurately reflects your wishes. Unfortunately, many people establish their trust, and the next time it’s viewed is after their death. This extensive period can hold many changes that may not have been added to the fund.

As mentioned, you do not need to update your trust annually. You should amend it in the event of significant life changes or if you no longer like the terms and conditions you had previously set for the distribution of the assets held in the fund.

What warrants a change?

As aforementioned, it’s unnecessary to update a trust fund every year, unless there are significant changes that warrant the amendment. For example, if new children or grandchildren enter your family, you may want to include them in the trust. Similarly, if you purchase a new property, get married or divorced, or move to Pennsylvania from another state where the laws may differ, you’ll want to ensure you can update your will.

After reviewing the document, you may also determine that the terms and conditions you established no longer reflect your wishes. For example, you may have said that your daughter can receive the assets held in the trust for her after she got married. However, your daughter may have informed you that she does not want to get married. In this instance, she would be unable to inherit the assets left for her in your trust, so you may wish to change the stipulations, allowing her to receive them when she reaches age 35 instead.

When you have questions or concerns about the terms, conditions, and beneficiaries named in your trust fund, you’ll need to enlist the help of a competent attorney. The legal team at Friedman Schuman can help guide you through the process of reviewing and altering your trust fund or setting one up if you have not done so already. Contact us today to learn more about how we can help you.

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