A living trust should be reviewed every three to five years, or sooner when you experience major life changes, acquire new property, or when California law shifts in ways that may affect your plan. Regular updates help ensure your trust accurately reflects your wishes, names the right decision-makers, and protects the people and property you care about.
When Should You Review Your Living Trust in California?
Most people benefit from reviewing their trust at least every few years, but certain events should prompt you to meet with an attorney sooner. You will want to revisit your documents when you:
- Buy or sell real estate, especially in counties affected by Proposition 19
- Get married, divorced, or enter a registered domestic partnership
- Welcome children or grandchildren, or experience a loss in the family
- Receive an inheritance or significant financial gift
- Start or close a business
- Move to or from California
- Want to change a successor trustee or beneficiary
- Experience a shift in health that affects long-term planning
- Need to update how your trust interacts with retirement accounts or insurance policies
These events can impact how your assets transfer, who can act on your behalf, and how property-tax rules apply. A quick review helps you avoid gaps that could delay distributions or cause conflict later.
How Property Changes Affect Your California Trust
Real estate plays a major role in estate planning for many Californians. Any time you acquire property, refinance, or retitle a home, you should confirm that the asset is properly funded into your trust.
When property is not titled correctly, your trustee may have to file additional paperwork or even go through court procedures to transfer it after your death. A short check of your deeds can prevent that outcome.
Prop 19 and Ongoing Property-Tax Considerations
California’s Proposition 19 continues to shape property-tax planning, especially for parents who want to pass homes to children. Because most transfers no longer qualify for the old parent-child exclusion, homeowners often need updated strategies to address:
- Whether a child plans to use the home as a primary residence
- How property-tax reassessments will affect long-term affordability
- Whether a trust needs amendments to address new valuation approaches
We help clients review their options so they understand how Prop 19 may affect their long-term goals. Even small changes in real estate planning can make a noticeable difference in future tax obligations.
Why Life Changes Should Trigger an Update
Your trust reflects your personal relationships, financial responsibilities, and long-term plans. When those areas shift, your documents should too.
Consider updating when you:
- Change your views on who should serve as trustee or guardian
- Want to adjust inheritances
- Need to include new charitable priorities
- Wish to add or remove beneficiaries
- Experience a major change in income or assets
Life rarely stays the same for long, and your planning documents should stay current with those changes.
Should You Update Your Living Trust When Laws Change?
Yes. Federal and state laws that affect trusts shift over time, and those changes can influence how your plan works. Even if your documents were drafted carefully, updates may be needed when lawmakers revise tax rules, property-transfer laws, or planning requirements.
Federal estate and gift tax thresholds continue to adjust with inflation. Families with higher-value estates may want to check whether new exemption amounts or planning opportunities affect how assets pass to the next generation. These updates sometimes open the door to strategies that reduce long-term tax exposure or simplify future administration.
In California, trust reviews remain important because the state faces ongoing discussions about whether to introduce a state-level estate tax. There is no such tax today, but proposals surface from time to time. Reviewing your plan periodically helps you stay prepared if lawmakers adopt new rules in the future.
How a California Estate Planning Lawyer Helps Keep Your Trust Current
A well-drafted trust works best when it is reviewed consistently. When you work with Heritage Legal, we help you:
- Review your goals and identify gaps in your current documents
- Confirm that real estate and financial accounts are correctly titled
- Adjust your trust for marriage, divorce, children, or new relationships
- Update beneficiaries, trustees, and guardians
- Address new tax considerations under federal or California rules
- Incorporate changes that improve clarity and administration
We take the time to understand your needs so your trust continues to reflect your wishes at every stage of life.
Ready to Update Your Trust? We Can Help
If you have not reviewed your living trust in several years, or you recently experienced a major life change, this is an ideal time to take a fresh look at your documents. We will help you protect your home, your family, and your long-term goals with a plan built for your current circumstances.
Contact Heritage Legal to schedule your trust review and get started.