Not Something to Set and Forget

An annual review of your will or trust is really important. You put a lot of work into creating it in the first place, and it’s just as important to ensure it’s kept up to date.

You can set any time of year for a review but we like setting it a week or two after your birthday or a family member’s. This avoids the typical “new year’s” crunch of to-do items, and – particularly with a trust – it ensures that if there are age-related triggers (e.g. aging into retirement, or aging into early adulthood etc.) you’ll be completely on top of it.

What to Review

The review process doesn’t have to be complicated and your common sense will guide you to make updates as needed. That said, here are a few questions you may want to consider:

• Has our financial situation meaningfully changed?
• Do we have new assets to consider?
• Has our income changed?
• Do we feel that the planned allocation of our assets is still in line with our values and is fair to our family?
• Have there been any changes to laws that might substantially affect our plan?

Life Changes that Should Trigger a Review

In addition to the scheduled annual review, if any of the following happen, you’ll want to make updates as quickly as possible.

• Major Changes to Financial Circumstances & Assets

• • Significant increases in value to invested assets
  • Inheritances
  • Major job or career changes
  • Major purchases including new real estate etc.
  • Addition of significant new debt

• Family Changes

• • Birth or adoption of children
  • A child turns 18 or reaches an age milestone set out in the trust
  • A child needs funding for education
  • Marriage or divorce
  • Major changes to insurance coverage
  • Major changes to physical or mental health status

• Trust/Will Changes

• • Death or incapacity to a member of the trust or will
  • Major changes to the law – particularly tax law