The Importance Of Reviewing And Updating Your Trust
After establishing and funding your trust, you may think the task is done. You may simply put the document in a safe or other location where you store important papers. However, change in life is inevitable and funding a trust is not something you can forget about after it is done. It is important to review your trust every three to five years, or after any major life event to ensure that it still reflects your situation and your wishes. Below, our Daytona Beach trusts lawyer outlines the most important reasons to regularly review and update these documents.
New Property is Not Automatically Transferred to the Trust
Every time you acquire a valuable asset such as a home, investment account, bank account, or business interest, you must consider ownership of the property. If the asset is titled in your name, it may bypass the trust entirely. This means it is not protected and will be subject to probate after you pass away. People often want to help their loved ones avoid the probate process because it is costly and time-consuming. Reviewing your trust regularly will ensure that all property is accounted for and placed in the trust.
Florida Law is Unique
When people think of major life events, they often think of births, deaths, marriages, and divorces. However, many people move to Florida every year and this is also a significant life change. If you created a trust in another state and then moved to The Sunshine State, a review of the document is necessary to ensure the following:
- The homestead protection in Florida is preserved
- The tilting of the property aligns with state requirements in Florida
- The document complies with Florida law
- Creditor and tax considerations are addressed
Ensure Beneficiary Designations are Coordinated
Not all property can or should be retitled into the name of the trust. Life insurance policies, retirement accounts, and other financial products have beneficiary designations. Upon your death, these assets are then directly transferred to the beneficiary. To avoid tax issues, conflicts, and unintended distributions, your beneficiary designations should also coordinate with the trust.
Protect Your Family
While reviewing and updating your trust can protect the property within the document to some degree during your lifetime, it is essential to protect your loved ones after you pass away. Proper trust maintenance provides the following benefits to your family members:
- Lower costs
- Faster administration
- Reduced stress for loved ones
- Increased privacy
- Clear management if you become incapacitated
- Reduced stress
Our Trusts Lawyer in Daytona Beach Can Review Your Documents with You
Whether you have just moved to Florida or have not reviewed your trust in some time, our Daytona Beach trusts lawyer can help. At Bundza & Rodriguez, our experienced attorney will take the time to understand your goals and properly execute a trust or review your current document to ensure it complies with Florida law. Call us today at 386-252-5170 or chat with us online to request a consultation and to get the legal help you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
