Creating a will remains one of the most important financial decisions, yet only about one-third of Americans have taken this crucial step. By having a will, you’ve already made a wise choice to protect your legacy and loved ones.
However, simply having a will isn’t enough. You need to keep it current. An outdated will can lead to probate issues and possibly family conflicts. Plus, it might not reflect your current wishes for distributing your assets. Updates help ensure your estate plan aligns with your goals and life circumstances.
Events that typically warrant a new will
Your will outlines how you want your assets distributed, names guardians for minor children and designates an executor to handle your estate. Here are five situations when you should consider updating this vital document:
- Your life changes: Marriage, divorce, birth of children or grandchildren and other significant family events require updates to ensure your will reflects your current family structure and relationships.
- Your assets change: Acquiring new property, receiving an inheritance, starting a business or experiencing other substantial financial changes means you should revisit how you want to distribute your assets.
- You move to a new state or country: Different locations have different estate laws, so relocating necessitates reviewing your will to ensure it remains valid and effective in your new home.
- Your beneficiaries experience changes: Developments in your beneficiaries’ lives, such as illness, disability, marriage, divorce or financial difficulties, may affect how you want to structure their inheritance.
- You change your mind about previous decisions: Over time, your relationships and priorities may shift, leading you to reconsider your chosen beneficiaries, guardians for minor children or the executor of your estate.
Remember, every major development can significantly impact your estate plan.
Schedule regular reviews
Even without significant changes to your life or heirs, you should review your will at least every five years. This regular check helps ensure your will reflects your wishes and complies with current laws.
Working with a skilled estate planning attorney during these reviews can help prevent potential problems and protect your legacy. They can guide you through necessary updates while ensuring your will meets all legal requirements. Consider scheduling these reviews alongside other regular financial planning activities to make it a consistent habit.