A living trust isn’t a “set it and forget it” document. Life moves fast, and your estate plan needs to keep up. But what trust review frequency should you aim for? In California, you need to review your trust every three to five years, or sooner after major life changes in your finances, property, or the law.
A regular review is an opportunity to keep your current goals and family dynamics aligned. Let’s look at what triggers a trust review and best practices for keeping your estate plan up to date.
Trigger events
You don’t need to wait for a crisis to revisit your estate plan. Events like marriage, divorce, a new child or grandchild, or a death in the family can all affect who you pass wealth to and who you trust to manage your affairs. What’s more, major moves like relocating to California, or buying and selling property, may trigger California property-tax rules.
How California property changes affect your Trust
For many Californians, their home is one of the most valuable assets in their estate plan. That makes checking property ownership an important part of any trust review.
Having a trust doesn’t automatically transfer your home. If the title doesn’t reflect your intentions, your successor trustee may face additional paperwork or probate after your death. Addressing retitling now can make a transfer easier later.
Prop 19 and property tax
If you want your children to inherit your home, consider the cost of keeping it. Proposition 19 narrows California’s parent-child property-tax exclusion, and most transfers no longer qualify for the old tax exclusion.
Three rules affect what your children will pay:
Primary home rule: Children can avoid a full property tax reassessment only if they use the inherited property as their primary residence.
Strict exclusion cap: The tax-basis exclusion is limited to a parent’s taxable value plus an indexed cap (around $1.2 million). Any market value above that limit triggers a partial tax reassessment.
No rental protection: Vacation homes, commercial buildings, and rental properties receive zero tax exclusion and face an immediate, full reassessment to current market value upon transfer.
A trust review can help you think through eligibility, exclusion caps, reassessments and property value, and whether your current trust language still supports your goals.
When laws change
Changes in federal or California law can affect how your trust works, how property transfers, and the tax issues your family may face.
The 2026 federal lifetime estate and gift tax exemption is $15 million per individual, or $30 million for married couples using portability. Currently, California does not impose its own state-level estate, inheritance, or gift tax. However, lawmakers continue to debate whether to adopt a state tax.
If you have a larger estate, it’s helpful to review how these changes affect what you leave to children or grandchildren, your planning options, and possible future taxes.
Navigating family dynamics in estate planning
Leaving assets to family members without clear instructions raises difficult questions. Is your designated successor trustee still the right person? Are your guardians still appropriate, or have your children reached adulthood? If one child inherits the family home, will there be enough other assets for their siblings?
Answering these questions is especially important for blended families, adult children with different financial needs, or situations where one child is more involved in caregiving than others.
Best practices
Staying on top of your estate plan doesn’t have to be overwhelming. While working with an attorney on a 3–5-year cadence is standard, annual checklists can help you track new assets, changes, and decisions you’d like to revisit.
As you review your plan, make sure you:
- Draft essential documents, which include a valid last will and testament, durable financial power of attorney, and medical directives or a healthcare proxy.
- Keep beneficiaries’ current!
- Fund and title assets correctly.
- Communicate clearly with loved ones.
Ready to work with a professional? If it’s been years since you reviewed your Trust, California Living Trusts can help you get back on track. Schedule a consultation to talk through your questions and clarify what your plan needs today.