What Regular Maintenance Should Be Performed on a Trust?

A trust should be considered as an ongoing commitment rather than a one-time transaction. Once signed and funded, a trust may sit quietly in the background; but it cannot take care of itself. Even the most carefully drafted trust can drift away from its original purpose if it’s not revisited and maintained. People and laws change, as do the needs and goals of beneficiaries.

If your trust has not been reviewed in years, it may be worth taking a closer look. Whether you would like to establish a trust in Wilmington, NC and the surrounding areas, or if you need help with another estate planning matter, contact Bespoke Estate Law for guidance.

How Often Should Someone Revisit a Trust?

Documents Must Keep Up With Changes to Your Circumstances

There is no legal rule that tells you when to revisit a trust. Even so, marriage, divorce, death, retirement, a significant move, or even changes in your values or preferences may all raise questions about whether the original trust still fits.

Some trusts remain untouched for twenty years or more, and that can be a problem. For instance, a named trustee may have moved or passed away. A beneficiary may have developed new needs, a property that once sat at the center of the trust may have been sold, or other circumstances may have changed. Your documentation must reflect the reality of your situation.

Is the Trustee Managing Assets as Intended?

In both North Carolina and South Carolina, trustees are held to a legal standard known as the “prudent investor rule.” This means managing trust assets with care, not necessarily maximizing returns, but making sound decisions based on the trust’s goals. If the trust holds investments, they should be reviewed from time to time, not only to assess performance, but to determine whether the asset mix still supports the trust’s goals.

That review should also consider whether the trustee has stayed engaged. If the trustee simply accepted his or her role out of obligation, he may now be difficult to reach or slow to respond. This can affect the trust’s effectiveness. In some cases, replacing a trustee with a more available or capable person can help prevent future disputes.

Are the Beneficiaries Still Being Served Appropriately?

Many trusts are created with children or grandchildren in mind. But over time, those same individuals may grow into adulthood, take on new responsibilities, or face unexpected challenges. A trust that once made perfect sense when the beneficiary was a teenager may now feel restrictive or irrelevant.

In other cases, a trust established to provide long-term support for a beneficiary with special needs, or a unique financial situation may need to be adjusted to reflect new realities. If those needs have changed, it may be possible to amend the trust and its distributions so that the support continues in a way that makes more sense.

Have State or Federal Laws Changed Since the Trust Was Drafted?

Both North Carolina and South Carolina have adopted the Uniform Trust Code, but local interpretations can evolve. Federal tax rules also shift more frequently than most people realize. In recent years, changes like the SECURE Act have affected how retirement assets are inherited and how quickly distributions must occur.

If your trust involves an IRA or a 401(k), and those assets are directed to beneficiaries through the trust, there may be new limitations or obligations that did not exist when the trust was written. A legal review can help identify those risks and offer solutions.

What Can Go Wrong When a Trust Is Not Maintained?

When a trust goes unreviewed for too long, the cracks often don’t show until something urgent happens. A bank may question a signature. A successor trustee may not be aware of their role. An important asset may not have been retitled properly. These issues are not always dramatic, but they can create real delays when it matters most.

Trusts that lack regular review are more likely to generate confusion during transitions. That includes incapacity, death, or a shift in family leadership. Taking time to review the document, the assets, and the administration can keep the trust aligned with your intent.

When Should Someone Sit Down With an Attorney?

Sometimes the best time is when nothing urgent is happening. Calm moments are often the best opportunity to evaluate what the trust was designed to do and whether it still holds up.

At Bespoke Estate Law, we work with families who want their estate plans to function in real life. We serve clients across coastal South Carolina and North Carolina, and we understand the need for trust plans that age gracefully and can adapt as necessary.

If your trust has been sitting untouched for a while, schedule a consultation with our Myrtle Beach estate planning attorneys. We’d be happy to review your documents, answer your questions, and help you stay one step ahead.