Estate planning decisions you make today will still serve your family years from now. A carefully prepared will or trust can provide direction, but what happens when family relationships change, tax laws evolve, or someone questions the decisions you've made? These are situations that even a well-written estate plan needs to anticipate. At the 2026 Estate Planning Symposium held at Santa Clara University School of Law, attorneys examined several developments that could affect how trusts are managed, modified, and challenged. While some of these issues involve substantial estates, the lessons are relevant to Indiana families who want to make their wishes clear and reduce the possibility of future disputes.
Artificial Intelligence Brings New Responsibilities
AI tools can help estate planning attorneys to draft documents, review records and analyze large collections of electronic communications. However, the symposium emphasized that using these tools does not transfer professional responsibility to the technology. However, attorneys remain responsible for the accuracy, confidentiality and legal sufficiency of AI-assisted work. They may also need to verify cited authorities, follow court disclosure rules and maintain appropriate oversight and documentation.
For clients, this reinforces the importance of working with attorneys who review AI-generated material rather than relying on it without verification. AI may improve efficiency. However, errors in a will, trust, or court filing can have lasting consequences.
Trust Modifications Can Trigger Gift Taxes
Changing an existing trust may seem like a straightforward administrative decision, particularly when family members agree. However, recent tax developments suggest that beneficiaries who surrender valuable rights during a trust modification or termination could face unexpected gift tax consequences.
The symposium examined Lewis v. Commissioner and related guidance involving qualified terminable interest property (QTIP) trusts. In the case discussed, children agreed to terminate a $117 million QTIP trust and distribute its assets to their father. The Tax Court concluded that each child had made a taxable gift exceeding $35 million by giving up their remainder interest. The implications extend beyond large estates. Beneficiaries should not assume that consenting to a trust change is tax-neutral simply because the family agrees with the outcome. Attorneys should evaluate the value of the rights being surrendered before proceeding.
Trust Decanting May Offer Another Path
Trust decanting involves moving assets from an existing trust into a new trust under authority granted to the trustee by the original instrument or applicable law. It can sometimes update a trust without requiring beneficiaries to surrender rights directly.
That distinction matters because the IRS may treat a beneficiary's failure to object to a transaction as a taxable gift if the beneficiary had a meaningful right to prevent it. When a trustee can independently modify the trust under existing authority, the argument that the change is a beneficiary's gift may be weaker.
Decanting does not eliminate every tax risk, and it is not available or appropriate in every situation. Nevertheless, carefully drafted trustee powers, powers of appointment and trust protector provisions can provide flexibility when circumstances change.
Document the Reasons Behind Estate Planning Decisions
Estate disputes often arise years after a will or trust was created, when the person who made the decisions can no longer explain them. Longer life expectancies and increasingly complex family relationships make contemporaneous documentation particularly valuable. Attorneys should maintain records of family history, the client's intentions, reasons for unequal distributions and observations relevant to decision-making capacity. Medical records, neuropsychological evaluations, attorney notes and written explanations can become important evidence if someone later alleges undue influence or incapacity. Families can also benefit from clear communication and consistent records. If a parent changes an inheritance arrangement, documenting the reasoning at the time can help distinguish a deliberate decision from a change someone later claims was improper.
State Lines Complicate Trust Administration
Families often move, buy property in other states, or appoint trustees who live elsewhere. As a result, the law governing a trust may not be as straightforward as the original document suggests. Domicile, the trust's location, the trustee's residence, the location of assets and the specific issue at issue can all affect which state's law applies. A governing-law clause may not settle every question, especially when another state's fundamental public policy conflicts with the chosen law.
Estate plans should account for these possibilities through thoughtful governing-law provisions, trustee selection and administrative flexibility. Reviewing a trust after a move or major asset change can help identify conflicts before they become disputes.
Review Your Estate Plan Before Circumstances Change
These developments share a common lesson: estate planning requires ongoing attention, not simply signed documents stored away for years. Tax rules, family relationships, technology and state-law considerations can all affect how an estate plan operates. A periodic review with an estate planning attorney can help identify outdated provisions, evaluate proposed trust changes and ensure that the reasoning behind important decisions is adequately documented. Planning ahead can preserve flexibility, while reducing the likelihood that heirs will face costly disputes later.
Vick Law Can Help
At Vick Law, we believe a good estate plan should grow and change with your family. Whether you've recently moved, experienced a change in family circumstances, established a trust years ago, or simply haven't reviewed your documents in a while, it's worth making sure your plan still reflects your wishes. Our team helps families throughout Greenwood, Center Grove, Johnson County, and the surrounding Indianapolis area review existing estate plans, understand their options for updating wills and trusts, and address concerns about inheritance, incapacity, and trust administration. If it's been several years since you reviewed your estate plan, contact Vick Law at (317) 884-3133 or online to schedule a consultation.We can help you identify potential concerns and develop a plan tailored to your family's circumstances.
Key Takeaways
- AI requires professional oversight: Attorneys remain responsible for verifying AI-assisted work and protecting confidential information.
- Trust changes can create tax liability: Beneficiaries who surrender valuable interests may make taxable gifts, even when a modification is agreed upon by the family.
- Documentation helps defend intent: Records explaining capacity, family circumstances and unequal distributions can be critical if an estate plan is challenged.
- State laws can overlap: Moves, out-of-state property and trustee changes may affect which jurisdiction's law governs a trust.
Reference: Wealth Management (September 30, 2026) "Five Key Developments for Estate Planners and Litigators"
