When you create a living trust, you take a major step toward protecting your family and ensuring your wishes are carried out. But here’s a secret many people don’t realize: the strength of your trust isn’t just in the words written on paper.
A trust is like the foundation of a house—it only works if the rest of the structure is built and maintained properly. The good news? You can strengthen and protect your trust without changing a single word in your legal documents. Here are five smart ways to do just that:
1. Make Sure Your Assets Are Properly Titled
Your trust only controls the assets that are actually owned by it. If a bank account, property, or investment account isn’t properly titled in the name of your trust—or doesn’t have your trust listed as a beneficiary—it may need to go through probate, defeating one of the main reasons you set up the trust in the first place.
Action Step: Take inventory of your assets and verify that titles, deeds, and beneficiary designations are aligned with your trust.
2. Keep Your Beneficiaries Updated
Even if your trust is perfectly written, outdated beneficiary designations can undo your planning. For example, an old life insurance policy might still list a deceased relative or former spouse.
Action Step: Review your retirement accounts, life insurance, and other payable-on-death accounts to ensure beneficiaries are correct and consistent with your trust’s plan.
3. Maintain Clear Records
Imagine your successor trustee trying to step in and manage things for you. Would they know where to find your documents, accounts, and passwords? A trust that is legally sound but practically impossible to administer creates stress for your family.
Action Step: Organize your estate plan in a single, accessible place. Include a list of accounts, property, and key contacts. Consider using a secure digital vault or binder.
4. Communicate With Your Trustee and Key Family Members
A trust works best when the people involved understand their roles. Many families never discuss the details, which can lead to confusion or conflict later.
Action Step: Share the basics of your trust with your trustee and anyone who will have responsibilities. A simple conversation can prevent misunderstandings and delays.
5. Coordinate With Your Advisors
Your trust is one piece of a larger financial puzzle. Working with your attorney, CPA, and financial advisor ensures that tax strategies, investment accounts, and insurance policies all complement your estate plan.
Action Step: Schedule a “team review” every few years or when life changes. This coordination strengthens your plan without a single document change.
The Bottom Line
Your trust is more than a document—it’s a living plan that relies on careful follow-through. By taking these five steps, you can reinforce the power of your trust and give your family peace of mind, all without changing a word.
If you’re not sure where to start, our team can help you perform a trust “check-up” to ensure your planning works the way you intended.
