When to Update a Living Trust in Nevada

Your estate plan is more than just paperwork; it reflects your life, your relationships, and your wishes. A typical estate plan includes a Will, Durable Power of Attorney, Healthcare Power of Attorney, Living Will, and Advance Directives. For many people, it also includes trust.

But many people overlook that your estate plan is only as good as it is current. As your life evolves, through marriage, divorce, new family members, acquired assets, passing of a loved one, or changes in the law, your trust needs to keep pace. Knowing when and how to update a living trust in Nevada is critical to ensuring your estate plan truly works for you when it matters most.

What Is a Living Trust, and Do I Need One?

A living trust is an estate planning document that allows you to place assets in a trust and use them for your benefit during your lifetime, then transfer trust assets to your named beneficiaries after your death. When you create a living trust, you appoint a successor trustee who will serve as your representative if you become incapacitated or after your death. A trust is a powerful estate planning tool that offers several advantages over a traditional Will. Natalia Vander Laan can evaluate your situation and advise on whether including a living trust in your estate plan would be beneficial.

Managing Your Living Trust

A trust is an estate planning document that evolves with you. For your living trust to remain an effective piece of your estate plan, you must keep it up to date. You should review your living trust every five years, at a minimum, and after major life events.

Life Events That Should Trigger a Trust Update

It is a common misconception that estate planning is “Done and forget it.” For your trust to remain an effective piece of your estate plan, you need to update it after major life events. Here are some common life events that should trigger a trust update.

Birth or Adoption of a Child or Grandchild

The addition of a child or grandchild to your family should prompt you to review and possibly update your living trust. Your living trust should reflect your current family situation and should include any and all children and grandchildren. A living trust can ensure any minor children are properly cared for and allows you to pass on wealth to future generations when you pass away.

Divorce

If you or any of your children get divorced, you should update your living trust to ensure assets will transfer to your intended beneficiaries rather than your ex-spouse or the ex-spouse of one of your children or grandchildren. You should also review and update all beneficiary and fiduciary designations to ensure they accurately reflect your new family situation.

Death of a Spouse or Family Member

The death of a spouse or another family member should trigger a review of your living trust. You should update your trust to ensure it accurately reflects new owners of any trust asset and correctly designates any trust beneficiaries.

Changes in Estate Tax Legislation

Changes to state or federal laws may prompt a review of your living trust to ensure you are taking full advantage of any changes in probate or estate tax laws. You may need to review your trust document to account for these changes and minimize your estate tax liability. The Vander Laan Law Firm can keep you updated on evolving estate planning legislation to ensure you are taking full advantage of any changes to the law.

Changes in Business Interests

If you own a business and the business experiences a change in ownership, you start a new subsidiary, or you start a new business, you may need to update your trust to reflect these changes in your financial situation.

Moving to a New Home

Relocating, particularly to a new state, is another reason to update your living trust. Trust laws, tax regulations, and property rules vary by state, which could make your existing trust documents ineffective or invalid. Updating your living trust will ensure compliance with applicable laws and help you take full advantage of any nuances of the law in your new state.

How to Update a Living Trust

Updating a living trust typically requires preparing an amendment to the original trust that clearly identifies any changes to the original trust document. When substantial changes are necessary, a trust restatement may be a better option. Natalia Vander Laan can evaluate your situation, provide advice and legal guidance, and handle all aspects of updating your trust.

Contact the Vander Laan Law Firm, LLC, for Comprehensive Estate Planning in Nevada

Natalia Vander Laan is a Nevada estate planning attorney who proudly serves clients from her offices in Minden and Carson City, Nevada. She works with individuals and families throughout Douglas County, Carson City, and Lyon County. Discover what makes her approach to estate planning unique, then call (775) 461-2897 or contact our law office today to schedule a free consultation to discuss your needs and how Natalia can assist you.

Contact Nevada Probate Attorney Natalia Vander Laan

For guidance on Nevada estate planning, contact Attorney Natalia Vander Laan at (775) 461-2897 to schedule your free probate consultation in Douglas County, Carson City, or Lyon County. You can also reach her at her offices in Minden and Carson City, Nevada.