Creating a will is one of the most important steps you can take in ensuring that your assets are distributed according to your wishes after your death. However, drafting a will is not a one-time task. As life circumstances change, it’s crucial to revisit and update your will to reflect these changes. Knowing when to update your will can help prevent complications and ensure that your estate plan remains effective. Our friends at Parker, Pallet, Slezak & Russell, LLC provide a guide to understanding when and why you should consider updating your will below.
Major Life Events
1. Marriage or Divorce: A change in marital status is a significant event that often warrants an update to your will. If you marry, you might want to include your spouse in your estate plan, designate them as a beneficiary, or name them as an executor. Conversely, if you divorce, you may need to remove your ex-spouse from your will and make new arrangements for asset distribution and guardianship.
2. Birth or Adoption of Children: The arrival of a new child, whether through birth or adoption, is a pivotal moment that should prompt an update to your will. You’ll need to name guardians for minor children and decide how you want your assets divided among your children. Additionally, if you’ve had additional children or if your family has grown, it’s essential to ensure that all children are considered in your will.
3. Death of a Beneficiary or Executor: If a person named in your will—whether as a beneficiary, executor, or guardian—passes away, you’ll need to update your will to appoint a new individual for these roles. It’s important to have a plan in place for such situations to ensure that your estate is handled according to your wishes.
Financial Changes
1. Acquisition or Sale of Major Assets: Significant financial changes, such as buying a new home, selling a property, or receiving a substantial inheritance, can impact your estate plan. Updating your will ensures that these new assets are distributed according to your wishes and that your estate plan reflects your current financial situation.
2. Changes in Financial Status: A substantial change in your financial status—whether an increase in wealth or a significant loss—can affect your estate planning needs. If you acquire substantial assets or investments, you may need to update your will to include these assets or adjust your distribution plan.
Changes In Personal Circumstances
1. Change in Relationships: Changes in relationships, such as estrangement from family members or the formation of new significant relationships, can impact your estate planning. If your relationships with certain individuals change, you might want to update your will to reflect your current wishes and ensure that your estate is distributed in accordance with your updated preferences.
2. Health Changes: If you experience a significant change in your health, it may be an opportune time to review and update your will. This is especially relevant if you need to make specific provisions for your care or for the distribution of your assets in the event that you become incapacitated.
Legal And Tax Considerations
1. Changes in Laws: Estate and tax laws can change over time, potentially affecting your estate plan. It’s important to stay informed about legal changes that could impact your will. Consulting with an estate planning attorney can help ensure that your will complies with current laws and that your estate plan is optimized for tax efficiency.
2. Updates in Estate Planning Strategies: Advances in estate planning strategies and tools may offer new opportunities for efficient asset distribution or tax savings. If there are changes in estate planning techniques that could benefit your situation, it might be time to update your will accordingly.
Regular Review
Even without major life changes, it’s a good practice to review your will periodically—at least every 3 to 5 years. This review ensures that your will remains aligned with your current circumstances and wishes. Regular updates can prevent issues and ensure that your estate plan remains effective and accurate.
Updating your will is an essential part of maintaining a sound estate plan. Major life events, financial changes, shifts in personal circumstances, and changes in laws are all important triggers for revising your will. By staying proactive and regularly reviewing your will, you can ensure that your estate plan accurately reflects your current wishes and provides clarity and direction for your loved ones. Consulting with a wills lawyer can offer additional guidance and help you navigate the complexities of updating your will effectively. Taking these steps will help ensure that your assets are distributed according to your wishes and that your estate plan remains robust and relevant.