Having a will can ensure that your wishes will be respected after you pass away. Your circumstances and intentions will probably change in the years after you sign a will. That’s why you should review the document and consider updating it every few years, or whenever you experience a significant life event.
Change in Family Status
A change in the makeup of your family can prompt you to modify your will. If you get married or divorced or your spouse passes away, you’ll have to update your beneficiaries.
Whenever a new child enters your family, review your will. If a child is born or adopted, you might want to change the way that assets will be distributed after your death. You’ll also want to name a guardian to care for the child if something should happen to you. If you get married and your spouse has children, you might want to leave some of your assets to your stepchildren. Following the birth or adoption of a grandchild, niece, or nephew, you might decide to update your will and leave a portion of your estate to that child.
Change in Your Financial Circumstances
Your income can rise or fall over time. You might receive a significant sum of money, or an investment might lose value. If your net worth is higher or lower now than it was when your will was drafted, you might want to change the way that your assets are to be divided upon your death.
An increase in your net worth can affect the amount of taxes that will be owed when you pass away. You might decide to alter your will to minimize the tax burden on your loved ones.
Change in Beneficiaries
Sometimes people decide to leave money to one or more individuals, then change their beneficiaries later. That can happen for many reasons.
You might have a fight with someone and decide that you no longer want to include that person in your will. A person who was designated as a beneficiary might pass away. You might decide to add a new beneficiary, such as an educational institution or a nonprofit organization.
Legal Changes
Estate and tax laws change from time to time. You might want to modify your will to take advantage of recent legal changes or to protect your family members from high taxes or a lengthy probate process.
Review Your Will on a Regular Basis
Any time you experience a significant life change, it’s a good idea to look over your will and figure out if it needs to be updated. You should also discuss your will with an estate attorney at least every few years. Even if your personal circumstances haven’t changed, laws might have. A professional might recommend modifying your will to make it better suit current circumstances.
