When Should I Update My Will?
Markus Winkler - Scrabble Letters “UPDATE”
Maintaining an up-to-date Will really matters!
Your Last Will and Testament is one of the most important legal documents you'll ever create. It dictates how your assets will be distributed and your affairs managed after you pass away. However, life is ever-changing, and what was relevant when you initially drafted your Will may no longer reflect your current circumstances or wishes. That's why it's crucial to periodically review and update your will to ensure it remains valid and aligns with your current situation and desires.
Why Update Your Will?
Life Events: Significant life events such as marriage, divorce, the birth or adoption of a child, or the death of a beneficiary or executor can impact how you want your assets distributed. For instance, getting married may necessitate updating your will to include your spouse as a beneficiary or to appoint them as an executor.
Changes in Assets: If you acquire new assets or dispose of existing ones, it's essential to reflect these changes in your Will. Failing to do so could result in unintended consequences, such as assets being distributed differently from what you intended.
Relocation: Moving to a different state or country may require updates to your Will to comply with local laws and ensure its validity in your new place of residence. Estate planning laws vary, so what's acceptable in one jurisdiction may not be in another.
Beneficiary Changes: Relationships evolve over time, and your feelings toward beneficiaries may change. Updating your Will allows you to remove or add beneficiaries as needed. Additionally, if a beneficiary predeceases you or becomes incapacitated, you'll want to revise your will accordingly.
Executor and Guardian Appointments: The individuals you've chosen to administer your estate or care for your minor children may no longer be suitable or available. Regularly reviewing and updating your Will ensures that the right people are appointed to these crucial roles.
Tax Law Changes: Tax laws are subject to frequent revisions, and these changes can affect your estate plan. Periodically reviewing your Will with a knowledgeable estate planning attorney can help ensure that your plan takes advantage of any tax-saving strategies available.
When Should You Review Your Will?
Every Few Years: It's generally recommended to review your Will every three to five years, even if there haven't been any significant life changes. This regular check-in ensures that your Will remains up to date and reflects your current wishes.
After Major Life Events: Any time you experience a significant life event, such as those mentioned earlier, it's wise to revisit your Will to determine if updates are necessary.
When Laws Change: Keep an eye on legislative changes that may affect estate planning, particularly tax laws. If there's a significant alteration in the legal landscape, consult with your attorney to assess how it impacts your Will.
Health Decline: If your health deteriorates or you become incapacitated, it's crucial to review your Will to ensure it still reflects your wishes. Waiting until you're in poor health may limit your ability to make changes or contestations.
Some of the main legal documents that you might want to revisit include:
Financial Power of Attorney - This legal document authorizes an appointed individual to act as your agent if you are in a time of need or if you are incapacitated. The duties of the agent include overseeing properties, paying bills, making deposits, buying and selling assets, and signing tax returns.
The named agent should be someone trustworthy and nearby and who will have the energy and good judgement to manage your affairs in a timely manner. It may be a family member or a trusted friend who has exhibited these qualities of honesty and common sense. You will also want to have a back-up agent in place if the original agent is unable to serve in that capacity.
Without a financial power of attorney in place, there may be no one legally authorized to manage your affairs in the way you would prefer. Family members may be required to have the court appoint a guardian to take over these duties. Obtaining a guardianship is time-consuming.
Health Care Power of Attorney - This legal form allows someone close to you to make medical decisions on your behalf in a situation where you are unable to do so. Your health care agent should be someone who understands in advance your general wishes for care management and medical treatment.
Last Will & Testament - This legal document allows you to direct the distributions of your estate at the time of your death. You will choose an executor to oversee these distributions on your behalf. Without an executor, the courts will appoint someone to oversee the distribution. If there are dependent children, your Will is also the place to designate a guardian to care for their needs.
Conclusion
Your Will is not a static document; it should evolve with you as your life circumstances change. By regularly reviewing and updating your Will, you can ensure that your wishes are accurately reflected and that your loved ones are provided for according to your intentions. Consulting with an experienced estate planning attorney can help you navigate the complexities of updating your Will and ensure that your estate plan remains current and legally sound. Remember, it's never too early to start planning, but it can be too late if you wait until it's absolutely necessary.