If you’ve got a will and an estate plan, you’re ahead of most people who are completely unprepared for the future. However, having a will is just the start, says a recent article from AARP.org, “6 Times When You Should Update Your Will.”
A will needs to be kept up to date. Changes need to be made when life-changing events occur to ensure that it still reflects your wishes. A skilled estate planning attorney should make these changes to ensure that the will is valid.
Changes to your marriage or family. Anytime you undergo a significant change, like welcoming a new child into the family or starting a divorce, you must make sure your will is updated. If you are in the middle of a divorce and you die, do you want your old will to give the spouse you were divorcing everything? There are also situations where people neglect to update their wills, and a first wife receives a surprise windfall while the current wife is left in the cold, financially speaking.
Changes in your heir’s situation. If an adult child develops a substance abuse problem, you may not want them to inherit a large sum of money all at once. You may create a trust and name a trustee, setting conditions on their ability to inherit. If an heir becomes disabled and applies for government benefits, you’ll want to create a Special Needs Trust not to make them ineligible for support and programs.
Relocating to a new state or even a new country. The Census Bureau reports that more than 1.2 seniors move across state lines every year, and many Boomers choose to live overseas. Wherever you go, you want to be sure your will is still valid. Estate laws vary from state to state, so the will you created when you lived in Illinois won’t necessarily be valid in Arizona. If you move to another country, you must have a will drafted to comply with local laws.
Your net worth increases or decreases significantly. Whether your net worth goes up or down, a change in your financial circumstances warrants a look at your will. If you inherited a big sum, you may want to add some philanthropy to your estate plan, or you may want to change how your estate is distributed. Any reallocations need to be documented properly.
You want to make a change. Life is full of changes. Someone you picked to be your executor five years ago may have died, and you haven’t decided who you want to replace them. You could also have a falling out with a family member and want to reduce their inheritance. Most importantly, don’t try to amend an existing will yourself. Speak with an estate planning attorney to ensure that your wishes are followed, and the changes are valid.
It’s been more than four years since you’ve reviewed your will. Estate plans are never one-and-done documents. Even if your life hasn’t changed, tax laws have. Your will needs to be revisited every three to five years to ensure that it works to accomplish your goals and protect loved ones.
Legacy One Law Firm, APLC is an estate planning law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
