A living trust is not a document you sign once and forget. Life changes, tax laws shift, and your goals evolve over time. If your trust no longer reflects your current wishes, assets, or family situation, it may not protect your loved ones the way you intend.
At Davies Law Firm, attorneys Frederick P. Davies and William P. Davies help families throughout Syracuse and Central New York keep their living trust estate plans current and effective. Our revocable trust lawyers work with clients to review existing plans, identify gaps, and make updates that reflect real life. Whether you created your trust five years ago or fifteen, a periodic review can prevent costly problems for your family.
This guide explains the life events that may require a trust update, the legal process for amending a trust in New York, how tax law changes can affect your plan, and what to look for when reviewing your living trust estate plan. If you have questions about updating your plan, Davies Law Firm can help. Call (315) 472-6511 to schedule a telephone conference with an estate planning lawyer in Central New York.
Why Does a Living Trust Estate Plan Need Regular Updates?
A living trust works only if it accurately reflects your current life. When you first created your trust, it was tailored to your family, your assets, and the laws in effect at that time. But families grow, finances change, and New York law does not stand still. A trust that was perfectly drafted five years ago may have gaps today.
Under New York Estates, Powers and Trusts Law (EPTL) § 7-1.16, a lifetime trust is irrevocable by default unless its terms expressly state that it is revocable. This means the language in your original trust document matters. If your trust is revocable, you retain the right to amend or revoke it during your lifetime. If it is not clearly designated as revocable, changing it becomes significantly more complicated.
Regular reviews also help you catch practical issues. A beneficiary you named years ago may no longer be the right choice. A successor trustee may have moved out of state or may no longer be willing to serve. Real estate you transferred into the trust may have been sold, or new assets may never have been properly funded into the trust at all.
Key Takeaway: Trusts created as part of your estate plan should be reviewed every three to five years, or whenever a major life event occurs. New York law presumes trusts are irrevocable unless they expressly say otherwise, so confirming your trust’s revocability is an important first step.
What Life Events Should Trigger a Trust Review in New York?
Certain life changes can make your existing trust provisions outdated or even unworkable. Recognizing these triggers early can help you avoid problems during estate administration.
How Does Marriage or Divorce Affect Your Trust?
Marriage and divorce are two of the most significant events in estate planning. If you marry after creating your trust, your new spouse may have rights under New York law that your trust does not account for. Under EPTL § 5-1.1-A, a surviving spouse has the right to elect against the estate and receive the greater of $50,000 or one-third of the net estate. This elective share includes certain assets held in revocable trusts, which New York law treats as testamentary substitutes.
If you divorce, New York law generally revokes revocable dispositions and fiduciary nominations in favor of a former spouse, including provisions in a revocable trust, unless the governing instrument expressly says otherwise. In practice, though, relying on that statute alone can still create complications. You should update your trust as soon as possible after a divorce to remove the former spouse by name and confirm your current beneficiaries and successor trustees.
When Should You Update Beneficiary Designations?
The birth or adoption of a child or grandchild is a common reason to revisit your trust. If your trust was created as part of your estate plan before a child was born, that child may not be included as a beneficiary. You may also want to add provisions for how assets are managed until the child reaches a certain age.
The death of a beneficiary or a change in a beneficiary’s circumstances can also create gaps. For example, if a beneficiary develops a disability after the trust was created, you may want to consider adding a supplemental needs trust provision to your comprehensive trust estate plan. This type of provision can help preserve a loved one’s eligibility for public benefits while still providing for their care.
Key Takeaway: Any change in your family, including births, deaths, or changes in a beneficiary’s health or financial situation, is a reason to review and potentially update your trust.
Estate Planning Attorneys in Syracuse – Davies Law Firm
Frederick P. Davies, Esq.
Frederick P. Davies is the founder and senior attorney of the Davies Law Firm, with over three decades of experience focused on estate planning, living trusts, estate administration, and taxation. He earned his Juris Doctor from Syracuse University College of Law and is admitted to practice in New York and Connecticut, as well as before the United States Supreme Court and the United States Tax Court. Mr. Davies served as an instructor and estate planning subject matter professional at the Air Force Judge Advocate General’s School, retiring from military service at the rank of Colonel.
Mr. Davies is a member of the American Bar Association (Wills and Estates Section), the New York State Bar Association (Trusts & Estates and Elder Law Sections), and the Estate Planning Council of Central New York. He has given over 1,000 seminars on living trusts, estate and tax planning, and long-term care. Clients and colleagues value his thorough approach to planning and his commitment to helping families protect their legacies.
William P. Davies, Esq.
William P. Davies is a partner at Davies Law Firm with a practice focused on estate planning. He earned his Bachelor of Arts in political science from the College of Saint Rose, his Juris Doctor, magna cum laude, from Albany Law School, and his LL.M. in estate planning from the University of Miami School of Law. He is admitted to practice in the state courts of New York and Florida.
Mr. Davies received a full academic scholarship to Albany Law School, served on the Albany Law Review, and completed a full-time judicial internship for the Honorable Mae A. D’Agostino. He has published on New York Power of Attorney law, spoken on estate planning and probate issues, and served as President of the Estate Planning Council of Central New York from 2023 to 2024. He remains active in several professional organizations, including the American Bar Association, the New York State Bar Association, the Onondaga County Bar Association, and the Professional Advisor Council for the Central New York Community Foundation.
How Do You Legally Amend a Living Trust in New York?
New York has specific legal requirements for amending a revocable trust. Under EPTL § 7-1.17(b), any amendment must be in writing and executed by the person authorized to amend the trust. Unless the trust document provides otherwise, the amendment must be acknowledged before a notary public or signed in the presence of two witnesses, using the same formalities required for recording a conveyance of real property.
If you are not the sole trustee, you must deliver written notice of the amendment to at least one other trustee within a reasonable time. The statute provides that failure to give this notice does not invalidate the amendment, but it does protect a trustee who acts in good faith without knowledge of the change.
There are two common ways to amend a trust. A trust amendment changes specific provisions while leaving the rest of the trust intact. A full trust restatement replaces the entire trust document with a new version that incorporates all changes. A restatement is often preferable when multiple amendments have accumulated over the years, because it creates a single, clean document.
It is also worth noting that under EPTL § 7-1.16, a revocable trust can be amended or revoked by an express direction in the creator’s will, as long as the will specifically refers to the trust or the particular provision being changed.
What Asset Changes Require a Trust Update?
Your trust only controls assets that have been properly transferred into it. This process, known as funding, is one of the most commonly overlooked aspects of trust maintenance. If you acquire new property or financial accounts after creating your trust, those assets may not be included unless you take affirmative steps to transfer them.
How Does Buying or Selling Property Affect Your Trust?
Real estate is one of the most important assets to track. If you sell property that was held in your trust, the proceeds should typically be deposited into a trust account to remain under the trust’s control. If you purchase a new property, the deed should be titled in the name of the trust. In Onondaga County, real property transfers involving a trust are recorded with the Onondaga County Clerk’s Office.
Failing to retitle newly acquired property in the trust’s name can mean that the property passes through probate rather than through the trust. This defeats one of the primary purposes of having a living trust estate plan, which is to help your family avoid the Onondaga County Surrogate’s Court probate process at 401 Montgomery Street in Syracuse.
What About Retirement Accounts and Financial Assets?
Retirement accounts, life insurance policies, and bank accounts with payable-on-death or transfer-on-death designations require special attention. These assets pass by beneficiary designation, not by the terms of your trust. If your beneficiary designations do not align with your trust provisions, your overall estate plan may not work as intended.
For example, if your trust directs that assets be divided equally among three children, but your Individual Retirement Account (IRA) names only one child as beneficiary, that account will pass entirely to the named beneficiary regardless of what the trust says.
How Do Tax Law Changes Affect Your Living Trust Estate Plan?
Tax laws change frequently, and those changes can have a direct impact on your estate plan. Even if your family situation has not changed, a shift in federal or New York estate tax thresholds can create new planning opportunities or new risks.
As of 2026, the New York estate tax basic exclusion amount is $7,350,000 per person. Estates at or below that amount generally do not owe New York estate tax. New York still has a cliff: if the taxable estate exceeds 105% of the basic exclusion amount, the available credit is fully phased out, which can produce tax on the entire taxable estate rather than only on the excess.
Unlike the federal estate tax, the New York estate tax exclusion is not portable between spouses. This means a married couple cannot simply combine their New York exclusions. Without proper planning, the surviving spouse’s estate may face a state tax bill that could have been reduced or avoided.
At the federal level, the basic exclusion amount is $15,000,000 for estates of decedents who die in 2026. Reviewing your living trust estate plan still matters because formula clauses tied to tax exemptions may need to be updated, and New York’s lower threshold remains separate.
The New York gift tax was repealed for gifts made after December 31, 1999. But for New York estate tax purposes, certain taxable gifts made within three years of death must be added back, subject to statutory exceptions. The federal annual gift tax exclusion remains $19,000 per recipient in 2026.
Should You Update Your Power of Attorney and Health Care Proxy?
A living trust estate plan typically includes more than just the trust itself. Most comprehensive plans also include a Power of Attorney (POA) and a Health Care Proxy (HCP), and these documents need periodic review as well.
Under New York General Obligations Law § 5-1501B, a Power of Attorney must be signed, initialed, and dated by the principal, acknowledged before a notary, and witnessed by two qualified witnesses. The agent must also sign and acknowledge the document before acting under it. One important point under the current law is that an agent may continue the principal’s customary gifts to individuals or charitable organizations, up to an aggregate of $5,000 in a calendar year, only if the document grants personal and family maintenance authority or broader express gifting authority. If your Power of Attorney predates these changes, it may not reflect current signing rules or current protections.
A Health Care Proxy is governed by New York Public Health Law § 2981. It allows you to appoint an agent to make medical decisions on your behalf if you lose the capacity to make health care decisions. Under New York law, the agent’s authority begins after a determination of lack of capacity under Public Health Law § 2983. A Health Care Proxy must be signed and dated in the presence of two adult witnesses. Your designated agent should still be someone you trust and who is available to act. If that person’s circumstances have changed, an update is in order.
Your overall estate plan should work together with your trust. A properly drafted Power of Attorney can give your agent authority to manage financial matters and, if the document grants the necessary powers, help transfer assets into your trust if you become incapacitated. Without a current Power of Attorney, your family may need to seek court authority to manage financial affairs.
Key Takeaway: A Power of Attorney and Health Care Proxy should be reviewed alongside your trust. New York’s 2021 Power of Attorney law made significant changes, so older documents may need to be updated.
What Are Common Mistakes to Avoid When Updating a Trust?
Updating a trust involves more than simply changing a name or adding a beneficiary. Several common mistakes can undermine even a well-intentioned update.
- Failing to fund new assets into the trust. A trust only controls property that has been properly transferred to it. New purchases, inherited assets, and newly opened accounts may sit outside the trust if you do not take steps to retitle them.
- Using informal or handwritten changes. Under EPTL § 7-1.17(b), amendments must follow the same execution formalities as the original trust. Crossing out provisions or writing notes in the margins does not create a valid amendment.
- Ignoring beneficiary designations. Assets that pass by beneficiary designation, such as retirement accounts and life insurance, are not controlled by your trust. If these designations conflict with your trust terms, the designation controls.
- Overlooking the pour-over will. A pour-over will works as a safety net by directing any assets not already in your trust to be transferred into it after your death. If your trust has been restated or significantly amended, your pour-over will should be reviewed to confirm it still references the correct trust.
- Waiting too long to make changes. Trust amendments require that the person making the change has legal capacity. If you delay updates until a health crisis occurs, you may not be able to make the changes you need.
How Often Should You Review Your Living Trust Estate Plan?
There is no single rule for how often to review your trust, but estate planning professionals generally recommend a review every three to five years. In between scheduled reviews, you should revisit your plan whenever a significant life event occurs.
The following table outlines common triggers and the type of review they typically require:
| Life Event | Recommended Action | Urgency |
|---|---|---|
| Marriage or divorce | Full trust review and likely amendment | High |
| Birth or adoption of a child | Add beneficiary provisions | High |
| Death of beneficiary or trustee | Update designations | High |
| Purchase or sale of real estate | Confirm trust funding and titling | Moderate |
| Significant change in asset value | Review tax planning provisions | Moderate |
| Change in New York or federal tax law | Evaluate exemption and gifting strategies | Moderate |
| Change in health or capacity | Confirm POA and HCP are current | High |
| Relocation to or from New York | Review state-specific provisions | Moderate |
| Retirement | Review asset allocation and income provisions | Moderate |
| Every 3-5 years | General review of all plan documents | Routine |
Even if none of these events has occurred, a routine review can uncover issues you may not have considered, such as changes in New York law, outdated trustee appointments, or assets that were never properly funded into the trust.
Speak with a Syracuse Estate Planning Attorney Today
Keeping your living trust estate plan current is one of the most important things you can do for your family. An outdated trust can lead to unintended distributions, unnecessary taxes, and the very probate process you created the trust to avoid. If any of the life events or changes described in this guide apply to you, now is the time to act.
Call Davies Law Firm at (315) 472-6511 to schedule a telephone conference. Our office in Syracuse serves families throughout Onondaga County and the surrounding region.
