Life Changes, Legal Changes: Why Your Will Needs to Keep Up With Your World
Creating a will is one of the most important steps you can take to protect your loved ones and ensure your wishes are honored after you’re gone. However, experts caution against simply drawing up a will once and then forgetting about it. “An estate plan is never a one-and-done activity,” says estate attorney William Stafford. Your life is constantly evolving, and your estate plan must evolve with it.
Sadly, 80% of people don’t check their wills often. This can lead to problems with their estates and unexpected legal issues. Understanding when to update your will can mean the difference between a smooth transition for your family and costly legal battles that could have been easily avoided.
The Golden Rule: Regular Reviews
Even without major life changes, estate planning experts recommend reviewing your will and estate plan every five years. For estate planning specifically, the general recommendation is at least every three to five years or when there is a life event. This regular maintenance ensures your documents remain current with changing laws and your evolving circumstances.
7 Life Events That Demand Immediate Will Updates
1. Marriage or Divorce
Marriage and divorce are significant life events that directly affect your estate plan. Whether you’re joining lives or separating them, these changes require careful attention to ensure your wishes are accurately reflected. When you marry, your new spouse may not automatically be included in your existing will. Updating your will ensures that your spouse is provided for according to your wishes.
Divorce creates even more complex issues. In many jurisdictions, divorce automatically revokes any provisions in your will that benefit your former spouse. This means any bequest to them or their appointment as an executor of your estate is legally nullified. However, after a divorce, you should immediately update beneficiary designations for all insurance policies and retirement accounts, and Powers of Attorney, and HIPAA authorizations. It is also a good time to revamp your Will and/or Trust to make sure it accomplishes what you want.
2. Birth or Adoption of Children
The addition of a child, whether through birth or adoption, is a key life event that requires estate planning updates. Your estate plan needs to provide for their care and financial future. One of the most important steps for parents is appointing a guardian for minor children. A guardian will care for your children if you and your spouse become incapacitated or pass away. Without this designation, the court will decide, and their choice may not align with your wishes.
3. Death of a Beneficiary or Key Person
If someone named in your will passes away, you’ll need to revise your plan to appoint new beneficiaries or executors. In the event that an appointed guardian of your children, your chosen executor, or agent under the Power of Attorney dies, it is imperative to designate a new person or people to handle these important matters.
4. Significant Changes in Financial Status
Wealth growth or loss changes how you want to share your money. Experts say to check your will if your money changes by 20% or more. Whether it is a sudden salary increase, inheritance, or the purchase of a large asset, these scenarios should prompt an adjustment in an existing estate plan.
5. Relocation to a Different State
When you move to a new state or buy property in a different state, consult a local estate-planning attorney to review your existing plan and make any needed updates. Among the benefits to updating your plan is the local attorney’s familiarity with your new state’s laws and consideration of differences in estate and inheritance taxation.
6. Starting or Selling a Business
Business owners need to plan for their business in their will. It’s important to write down how to pass on the business and who gets it. If you become a business owner or decide to sell or close your business, your estate plan needs to account for these changes to protect your interests and those of your heirs.
7. Major Health Changes
Major health issues might necessitate updates to your power of attorney or healthcare directives to ensure your medical wishes are followed. If you or a beneficiary receives a significant health diagnosis, you may want to update your will to account for potential long-term care needs or to make special provisions for a beneficiary with health challenges.
The Consequences of Outdated Estate Plans
Failing to update your will can lead to serious complications. Updating your will can also help prevent family squabbles over inheritance down the road. “I know of situations where assets were left to ex-spouses one to two times removed,” says certified financial planner Troy Young. “Or the biological child of a parent [didn’t] receive any inheritance because their parent did not update their will or estate plan when they remarried.”
Working with Experienced Legal Professionals
Given the complexity of estate planning and the significant consequences of outdated documents, working with experienced legal counsel is crucial. For residents of Long Island seeking expert guidance, a qualified Wills and Trust Lawyer Smithtown can provide the personalized attention needed to navigate these important decisions.
Fratello Law, founded by attorney Cheryl L. Fratello in 2012, exemplifies the type of dedicated legal service that makes estate planning manageable. Every client is unique and they take the time to understand their clients’ individual needs. At Fratello Law, they love building lasting relationships with clients that span generations. The law firm has offices located in Smithtown and Syosset, New York. They conveniently offer telephone, Zoom and in-person consultations. There is never a fee for an initial consultation at Fratello Law.
Taking Action Today
Your Will should be updated whenever you feel it’s necessary to do so. A good rule of thumb is you should at least review your Estate Plans every three to five years, but there’s definitely no need to wait that long should you have any major life events that warrant updates sooner.
Don’t become part of the statistic of people who neglect their estate planning updates. Whether you just had one major life event, or if you haven’t revisited your Will in many years and a number of things have changed, keeping your Will up-to-date is an essential part of protecting your family after you’re gone. Your family’s future security depends on the decisions you make today – ensure your will reflects your current life, not the life you had when you first signed it.