What life events should trigger an estate plan review?
Brian Chew explained that the most common reason to update an estate plan is changing relationships, not just changing assets. Events such as marriage, divorce, the birth of children or grandchildren, or the passing of a loved one often require revisiting the trust to ensure the right people are named as beneficiaries, trustees, and decision-makers.
Why are relationships often more important than assets when updating a trust?
Chew emphasized that while many people assume estate plans only need updating when wealth changes, in reality, family dynamics drive most updates. For example, parents may need to add adult children as successor trustees, or remove estranged family members from inheritance provisions. Ensuring the right people are in charge is critical to avoiding disputes later.
What risks exist if someone never reviews or updates their estate plan?
According to Chew, an outdated estate plan can create costly conflicts, delays, and unintended distributions. For example, a trust that hasn’t been updated after divorce may still leave assets to an ex-spouse. Outdated provisions, such as old AB trusts from before the 2012 tax law changes, can also result in unnecessary tax complications and administrative burdens.
What is the importance of properly funding a trust?
Chew highlighted that even the most carefully drafted trust can fail if it is not properly funded. Funding means retitling assets, bank accounts, and real estate into the name of the trust. If assets are left outside the trust, they may go through probate, defeating one of the main purposes of estate planning.
How do divorce and remarriage impact estate planning?
Divorce and remarriage are two of the biggest triggers for revising an estate plan. Chew noted that failing to update documents in these situations can lead to unintended beneficiaries inheriting assets. In blended families, careful planning is essential to ensure both spouses and children from prior marriages are fairly protected.
What are outdated AB trust provisions, and why are they a problem?
Chew explained that AB trusts were widely used prior to 2012 federal estate tax changes. Many older trusts still include these provisions even though they are no longer necessary for most families. Today, these outdated structures often create administrative headaches and can lock assets in ways that limit flexibility. Updating or restating the trust removes these unnecessary burdens.
What is the difference between a trust amendment and a trust restatement?
An amendment makes specific changes to certain sections of the trust, while a restatement completely replaces the trust document while keeping the original trust name and date. Chew advised that for minor updates, an amendment is sufficient, but when multiple changes are needed or the document is outdated, a restatement provides a cleaner and more efficient solution.
Why is responsiveness from an estate planning attorney so important?
Chew stressed that life changes quickly, and an estate plan is only effective if it keeps pace. He advised working with a law firm that provides ongoing support, timely communication, and follow-up reminders. A responsive attorney ensures that documents remain current and that clients understand when changes should be made.
What final advice did Brian Chew share about maintaining an effective estate plan?
Chew encouraged families to view estate planning as a living process, not a one-time event. He recommended reviewing the plan every three to five years, or sooner if major life changes occur. By keeping documents current, properly funding the trust, and working with a responsive attorney, families can secure long-term peace of mind and avoid costly legal battles.
