8 Reasons You May Need To Update Your Will
You’ve created your estate plan. All of your beneficiaries are accounted for in your last will and testament, your wealth and assets are secured in trusts, your living will outlines every possible medical decision you might face, you’ve chosen a trusted executor, and you’ve accounted for any other need or occurrence. Nothing else to worry about, right? Well, not quite.
There are many life events that may occur that change your family or your finances; these changes may mean it’s time to update your will. If you fail to keep your will up-to-date, you run the risk that your final wishes won’t be accurately reflected when it comes time to divide your estate, or, even worse, your will could be invalidated by your failure to update it and the state will inherit the responsibility of distributing your assets (potentially causing strife within your family and leaving out people you care about).
So how do you know when it’s time to update your will? At Villegas Law, we have over 15 years of legal experience in estate planning, so we have helped hundreds of clients answer this very question. Here are some of the most common occasions that make an update necessary!
When You Get Married Or Divorced
When you get married, naturally you want your will to include your spouse! However, the opposite is also true: if you are getting divorced, you have some tough choices to make regarding the new distribution of assets. It’s best to execute the changes to your will before the divorce is even initiated since your ex will still have a claim to your estate if you happen to die before it is finalized. After you divorce, your spouse will immediately be revoked from your inheritance, but you will have to choose how you want to redistribute those assets.
When You Have Kids
When you grow your family, you naturally want to do everything in your power to ensure that your children are provided for and set up to thrive–even long after you’re gone. When you have kids, you most likely want to include them as beneficiaries, so after a new arrival, it’s time to update your will to specify how assets should be divided for them. If you have a trust for your children, you will also want to ensure that a responsible trustee is appointed for them. In addition to having your will reflect inheritances for your children, you should include provisions for guardianship in the event you and your spouse pass away while your children are still minors. Having a trusted guardian chosen and ready to assume the role will prevent the state from appointing someone in your stead.
One additional note–if your child gets married, you should further update your will in order to reflect the new member of your family or to protect the inheritance of your child should they go through a divorce.
When A Beneficiary Passes Away
When a loved one passes, updating your will is probably not the first thing on your mind. However, if your friend or family member was listed as a beneficiary in your will, you need to make sure that the assets apportioned for them are reallocated to someone else. Updating your will is also a good idea in the event a beneficiary exits your life for some reason other than death.
When Your Executor Passes Away
Same with above – you want to update your will sooner rather than later if your executor passes away. Your executor is responsible for dividing your estate according to your will and complying with the legal processes by which your assets are distributed. In this case, you will need to pick a new executor, so it’s best to act quickly. You will need to choose someone who is reliable and capable of performing the tasks of an executor, which means that you will need to have some vital discussions with your estate planning lawyer and the qualified adults close to you in your life.
When You Acquire More Wealth
You want your will to reflect an accurate measure of your assets, so if you find yourself earning more than when you initially created your will, you should update it to reflect your new net worth. Additionally, it’s normal to acquire valuable property throughout your life, be they family heirlooms or investments or a new home, and you will want to make sure that these things will go into good hands after you pass.
When You Sell Or Lose Possessions
By the same token, when assets pass out of your possession, you want your will to reflect an accurate calculation of your wealth. For example, if you included real estate property in your will which you then go on to sell, you want to ensure that it’s not included in your will.
When You Move To A Different State
Estate planning laws vary across states, so if you move to a new state, you should ensure that your will is valid by the laws of that state. For example, are there the right number of witness signatures? Does your executor have to be a family member in your new state but not in your old one? Are there different tax considerations you should keep in mind? Reviewing state-specific laws with an estate planning lawyer when you move to a new state is highly recommended.
When New Legislation Is Passed
When the government passes laws that alter estate planning standards or your own financial position, you need to review your will to make sure everything is in compliance. Again, this type of situation is an ideal time to talk to your estate planning lawyer in order to assess the complex legal issues that might not be obvious to a lay person. Additionally, new laws might not render your will invalid, but they might make other estate planning tools—trusts, for example–look like better options to you. Speak with the trusted estate planning lawyers at Villegas Law Firm about your options.
Villegas Law Firm Has The Necessary Experience To Help With Your Will
If it’s time to update your will, Villegas Law Firm offers fifteen years of experience drafting waterproof wills, as well as all other aspects of estate planning services. Our firm is committed to client satisfaction and offers bilingual services and specialty tax services. For all of your estate planning questions and concerns, reach out to book a free consultation.