A Will is one of the most important documents you will ever write and allows you to decide what happens to your money, property and possessions after your death. Failing to make a Will can cause complications for your family or dependents, and in the absence of a Will there is no guarantee that your assets will be distributed in accordance with your wishes. Keeping an up-to-date Will provides you with the peace of mind that your wishes are followed and makes it easier for your family and friends to deal with your estate following death.
This article considers how often you should update your Will and highlights major life events that may prompt you to make changes.
How often should I review my Will?
We recommend reviewing your will every 3 to 5 years to ensure that it reflects your current circumstances and complies with any changes in the law.
However, major life events can also bring attention to the need for updating your Will.
Change in your relationships
Many people don’t know that marriage automatically revokes a Will. This means that your will is no longer valid, unless it was specifically made in contemplation of marriage.
Whilst divorce does not automatically revoke a Will, it will be read as if your former spouse or civil partner has predeceased you. It Is still important in these circumstances to review your Will to ensure that it reflects your current requirements.
The birth of children or grandchildren
A growing family can affect your Will in several ways, such as providing for your children and/or grandchildren as well as specifying guardians for minors.
If your children are under 18, you will need to appoint guardians to care for your children until they attain the age of 18.
Whilst providing for your children or grandchildren, it is equally important to make sure you consider whether they are mature enough to manage the funds left to them. It is beneficial to consider whether to specify an age contingency or whether to leave funds on trust for your children and/or grandchildren to be managed on their behalf. This would allow you to protect assets and preserve them for future generations taking into consideration vulnerabilities i.e. your child having matrimonial issues.
Death of executors or beneficiaries
Reviewing your Will following the death of a loved one is important, to allow you to check that your Will still nominates appropriate people to administer your assets. If an executor of your Will has predeceased you, you should review your Will and appoint an alternative in their place.
If a beneficiary has predeceased you, it’s important to review where their share of the estate will go, to ensure that it still aligns with your wishes. If your Will does not provide for default beneficiaries you will need to update to reflect your present wishes.
Changes to your financial circumstances
If your financial circumstances have changed, for better or for worse, you should review your Will to ensure that your wishes are reflected. If you have previously left a cash gift to someone, you need to ensure that your estate can still afford to fulfil it. Likewise, if your finances have changed for the better, you might want to consider changes to your will by including legacies, or making changes to what your beneficiaries are to receive.
If you have recently purchased a new house, you should review your Will and property ownership to ensure that your property can pass in accordance with your wishes.
Changes in the law
Changes in the law and tax policies could affect your estates position on death. Recently we have seen changes introduced by the Autum Budget which will affect many individuals. The Budget saw changes to inheritance tax including unused pension funds becoming liable for inheritance tax and the reform of Agricultural property relief (APR) and business property relief (BPR).
Reviewing your Will in light of these changes may allow you to mitigate the impact of the tax change.
Seeking Legal Advice
Ensuring that your Will remains valid and reflects your current circumstances is a crucial element of planning for your future. A Will provides you with peace of mind and security that your wishes are complied with and that you have simplified the process for your loved ones.
For more information about the process of getting your affairs in order, including a review of your existing Will, please get in touch with our Wills, Trusts and Probate department at Gorvins on 0161 930 5151 or email us at enquiries@gorvins.com