Do you need to revise the trust formula in your revocable trust?

Many estate plans were prepared when the applicable exclusion amount was much lower than it currently is now.  These estate plans frequently created a non-marital share equal to the applicable exclusion amount (currently $5,250,000.00). Individuals whose plans were executed before 2001 thought that their non-marital share would never exceed $1 million, and individuals with estate plans executed between 2001 and 2010 often thought that their non-marital share would never exceed $3.5 million.

Generally, non-marital shares that are primarily for the benefit of the children and other descendants may need to be revised to include the spouse as a beneficiary. This is critically important for second marriages if the non-marital share is set up for children of the first marriage.  If this scenario may apply to your trust, contact Linde Law Group today to discuss.

Matthew A. Linde
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