Lives are messy and in constant flux. When you experience major life changes, it’s crucial to keep your financial planning up to date, including revisiting your will. Here are the key life-changing events when you should review and update your will to ensure your wishes are accurately reflected and your loved ones are protected.
The importance of updating your will
Failing to keep your will up to date could mean that your estate falls into the wrong hands.
We’ve all read the horror stories of the ex-partner, acrimoniously divorced, who inherits everything because the deceased forgot to update their will. These are the kind of situations that can be avoided with timely updates to your will.
If you have experienced any of these life events recently and haven’t yet updated your will, make a review a priority.
1. Marriage
Upon marriage, you might want to include your spouse as a beneficiary or assign them important roles, such as executor or guardian of your children.
2. Divorce
Do not assume that a divorce automatically revokes any provision for the ex-partner in a will. While this is the case in some states in the US, it certainly isn’t standard everywhere. Getting divorced is a major life event that necessitates a review of your will. It is usual to remove your former spouse from your will and adjust the distribution of your assets.
3. Birth or adoption of a child
The arrival of a new child is a joyous occasion that generates much upheaval. In all the chaos, don’t forget the significant impact this life event has on your estate planning.
Ensure your will includes provisions for the financial support and guardianship of your child in case something happens to you. If you don’t have a will naming a legal guardian for your children, a court will decide for you. This adds unnecessary stress during an already difficult time for your kids and is entirely avoidable if you write your wishes down in your will.
4. Significant changes in assets
Substantial changes in your financial situation, such as acquiring property, receiving an inheritance, or experiencing a considerable increase in wealth, should prompt a will review.
Changes such as these can affect how you want your assets distributed and may necessitate the creation of trusts or other financial structures to manage your estate effectively. We recommend taking financial advice from an experienced professional on whether you should establish a trust and how to go about it.
5. Relocation to a new country
Moving abroad can have significant legal implications for your will. The laws regarding wills and estate planning vary significantly between jurisdictions. It’s essential to review your will with a legal expert familiar with the laws of your new country to ensure it remains valid and enforceable.
6. Death of a beneficiary or executor
The death of someone named in your will, whether a beneficiary or an executor, requires immediate attention. You will need to update your will to reflect these changes.
7. Changes in tax laws
Tax laws can change frequently and may have a significant impact on your estate. Revisions to inheritance tax, such as this proposed change to UK IHT laws, or other relevant tax laws in your home country or country of residence can affect the value of your estate and the distribution of your assets. Keeping your will up to date with current tax laws ensures that your estate is managed in the most tax-efficient manner.
8. Major health Changes
A significant change in your health, whether a diagnosis of a serious illness or a general decline in health, should prompt a review of your will. Ensuring your healthcare wishes are documented and your estate is in order can provide peace of mind and reduce the burden on your loved ones during a challenging time.
Does your will need updating?
Have you experienced any of these events recently and failed to update your will? If so, now is the time to take action.
If you have any questions about wills, we’ve got you covered in our will writing Q and A.
Infinity’s financial advisers can also offer personalised guidance and support on estate planning and will writing.
Make sure your will reflects the life you lead today and the legacy you wish to leave behind. Contact us for a meeting to discuss your will and estate planning.
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