Three signs you should update your estate planning
Creating a will is an essential part of estate planning. Although having a will in place can ensure your assets pass according to your wishes on your death, wills are not something to ‘set and forget’. As life is constantly changing, it is important to periodically review and update your will to ensure it reflects your current circumstance and intentions. This article will guide you through three key scenarios that signal it is time to update your will.
Major Life Events
You may need to consider updating your will if a major life event occurs. Several significant life events can trigger the need to update your will, including:
- Marriage;
- Divorce;
- A new relationship;
- The birth or adoption of a child; or
- The death of a beneficiary or executor.
If you marry after having created a will, your will is automatically revoked unless it includes a specific clause to deal with marriage. Although divorce does not revoke your will, it does revoke any gift made in your will to your former partner and the appointment of your former partner as an executor, trustee, or guardian. This is the case unless a special clause indicating a contrary intention was added to your will when it was drafted.
Entering a new relationship, welcoming your first child or another child into your family, or the death of a beneficiary or executor of your existing will may also indicate that it is time for you to update your will. These scenarios will likely change who you wish to appoint to certain positions in your will and how you should or how you wish to distribute your assets on your death.
Financial Changes
Changes in your financial circumstance can also indicate a need to revisit your will. If you experience a substantial increase or decrease in your assets, it may alter the advice a legal professional would provide to you in relation to your will and change how you would like to distribute your assets on your death. Perhaps you’ve acquired new properties, started a business, or sold significant assets, your asset pool may be significantly larger than when you drafted your current will. Similarly, if you’ve accumulated debts or faced financial setbacks, adjusting your will can help you ensure the fair distribution of your remaining assets and protect your beneficiaries from unintended consequences.
Relocation
Moving to a different state, territory, or country is an important indicator that it is time to update your will. Laws governing wills differ across jurisdictions, and what might have been valid in one location may not be enforceable somewhere else. To ensure your will can be used to deal with assets you may hold where you are now living, it is crucial to revisit your will.
Periodically reviewing and updating your will is crucial to ensure your wishes are carried out on your death. Major life events, changes in financial circumstances, relocation, and evolving relationships are all indications that your will may require revision.
If you feel you need to revisit your will, the team at Eleven Legal can help; contact us today!
