Your Trust Is 20 Years Old. Here's What May Have Changed.

Many families in Stanislaus, Tuolumne and Calaveras counties signed a living trust in the 1990s or early 2000s, put the binder on a shelf, and haven't opened it since. A trust doesn't expire. But over 20 years the law has changed, your family has changed, and what you own has probably changed too. Here are seven things worth checking.

1. The estate tax rules are completely different

In 2000, the federal estate tax exemption was $675,000 per person. Many married couples' trusts from that era require the trust to split into two or three separate trusts when the first spouse dies, often called an "A-B" or "bypass" trust, to avoid estate tax.

Today the exemption is far higher: $15 million per person in 2026. A surviving spouse can also use the unused exemption of the spouse who died. For most families, a required split no longer saves any tax. It can mean extra paperwork, separate tax returns, and higher capital gains tax for your children later. Many older trusts can be amended so the split becomes optional.

2. Property tax rules for children changed in 2021

Under Proposition 19, children who inherit a parent's home keep the parent's low property tax assessment only in limited cases. A cabin or rental property is usually reassessed. If real estate is a large part of your estate, your plan may need a fresh look. (Our December post will cover this in detail.)

3. Your trustees and guardians may no longer fit

The sibling you named as successor trustee in 2002 may now be in their 80s, live out of state, or no longer be the right choice. Children who were minors when you signed are now adults who could serve themselves.

4. What you own has changed

A trust only controls assets titled in its name. A home bought, an account opened, or property refinanced since you signed may have ended up outside the trust. Those assets can still go through probate. Retirement accounts and life insurance pass by beneficiary designation, so those forms need to match your plan too.

5. Your family has changed

Marriages, divorces, grandchildren, a child with special needs, or a beneficiary facing debts or addiction can all call for different provisions. Giving everything to someone outright may no longer be the best choice.

6. Your power of attorney and health care documents may be stale

Banks often hesitate to honor a power of attorney signed decades ago. Health care documents signed before federal medical privacy rules took effect may not let your family get medical information when it counts. Up-to-date documents prevent delays in a crisis.

7. California trust law has changed

California has updated its rules on trust administration, beneficiaries' rights and no-contest clauses several times since the 1990s. Language that was standard then may not work the way you expect now.

What a trust review looks like

Bring your binder to our Modesto or Sonora office. We read the trust, check how your assets are titled, and recommend one of three things: no change, a short amendment, or a full restatement. A restatement updates the whole document while keeping the original trust name and date, so assets already in the trust stay there.

We have helped Central Valley and Mother Lode families with their estate plans since 1973. To schedule a review, call our Modesto office at 209.521.6260 or our Sonora office at 209.533.2233.

This post is general information, not legal advice. Reading it does not create an attorney-client relationship. Every family's situation is different, so please talk with an attorney about yours.