There is a myth out there about trusts and estate planning that I would like to address today. I call it the myth of the magic book. For those of you who have taken the step to create a trust, there is a common misconception that the trust is a magic document that will take care of you and your family when you pass away. Once the estate plan is done, that’s it, job finished, nothing else needs to be done. Unfortunately, nothing is farther from the truth.
Three Things in Flux
The truth is that estate plans are fluid. There are three things that are always in flux in an estate plan. The first is you and your life. As time passes, relationships develop and sometimes get strained, people are born and people die, and your asset base is constantly changing.
Next, the law is always changing. Many different laws affect estate plans – tax laws, real estate laws, family law, and of course, trust law. Changes to these laws affect every estate plan.
Finally, the practice of estate planning changes over time. As time passes and laws change, there are always new and better ways to plan an estate. The plan that was cutting edge 10 years ago may very well be ineffective today given changes in law and the emergence of new strategies.
The Garden Needs Tending
So, give these constant changes, can you see why a trust is not a magic book. In reality, it is more like a garden that needs tending. So the good advice is to get your estate plan reviewed on a consistent basis so you can make sure your plan actually works. Fortunately, at Kalicki Collier, we offer complimentary reviews of all trusts and estate plans, so feel free to give my office a call and ask for an estate plan review.
As always, we are offering a free estate plan review, please contact us. 775.852.2600