Dangers of an Outdated Trust

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When Tax Laws Change — Trusts Should Also

It seems as though state tax laws and federal income tax rules change with every Congressional session. If you have a trust, living trust or other estate planning document that is more than three years old, there is a danger that it may not work as you originally intended. Many estate plans that include A/B or bypass trusts are unnecessary after the estate law changes of 2018. A single person may now pass $11,180,000 to heirs without estate tax. A married couple can double this amount to $22,360,000. If an existing trust is restated to simplify it, significant legal and accounting fees can be avoided in the future.

I’ve been a tax attorney and estate planning lawyer for 30 years. I now find that many of my clients are encountering new challenges which were not addressed when we originally prepared an estate plan. In particular, many of my clients now find that they need durable powers of attorney when they travel or when they need hospital care.

If you come to my law office, I will recommend that you create an estate plan that is significantly different than the ones I prepared as recently as three years ago.

To make certain that your living trust takes advantage of current tax laws, contact San Jose dangers of an outdated trust attorney Robert A. Froehlich or call 408-293-0344 for a free initial consultation.

California Living Trust Lawyer

The dangers of having an outdated living trust are that your adult children could lose their inheritance during divorce, or a spouse’s bankruptcy, and that your beneficiaries may receive their inheritance after their creditors are paid.

There are a number of corrective actions we can take if you have a living trust that is more than three years old.

  • Redraft the trust or amend it according to current rules
  • Make certain that all new assets, including real estate and brokerage funds, are included in the trust
  • Tie the trust to a pourover will to capture new assets
  • Protect your living trust from creditors and spouses of beneficiaries

Your Next Step Is To Call

The time to update your estate plan is today. I am ready to help you reevaluate your estate and evaluate your trust. I am happy to lend my 30 years of experience to you. For a free initial consultation,  call me at 408-293-0344 to schedule an initial meeting.

Located in San Jose, California, Robert A. Froehlich, Attorney at Law, does estate planning for clients throughout Silicon Valley and Northern California, including Palo Alto, Fremont, Mountain View, Los Gatos, Sunnyvale, San Francisco, Redwood City and Milpitas and elsewhere in Santa Clara County, San Mateo County, Santa Cruz, Alameda County and San Francisco County.