Creating a will is an essential step in ensuring your wishes are honored and your loved ones are protected after you pass away. However, many people make the mistake of treating their will as a “set it and forget it” document. Estate planning experts generally recommend reviewing your will at least every three to five years, but certain life events should trigger an immediate review regardless of when your will was last updated.
The Five-Year Rule: A Good Starting Point
Financial planners and estate attorneys typically suggest looking over your will and broader estate plan every five years. This regular review ensures your will remains aligned with your current circumstances, relationships, and financial situation.
Regular reviews allow you to reflect on changes in your personal or financial situation, ensure your will still aligns with your current wishes and goals, address any new legal or tax considerations, and confirm that your chosen executors and guardians are still appropriate. Even if you ultimately make no changes, the process keeps your estate plan fresh in your mind and helps you catch potential issues before they become problematic.
Major Life Events That Should Trigger a Will Update
Changes in Family Status
When you get married, your new spouse may not automatically be included in your existing will. Updating ensures your spouse is provided for according to your wishes. In the case of remarriage, you may need to balance the interests of your new spouse with those of children from a previous marriage.
After a divorce or legal separation, you’ll likely want to remove your ex-spouse from your will and redistribute assets accordingly. While some states automatically revoke provisions for ex-spouses upon divorce, it’s best to update your will explicitly to avoid confusion or potential legal challenges.
When you become a parent, updating your will is crucial to include provisions for your children. This includes naming guardians who will care for minor children if something happens to you and your spouse, as well as specifying how you want your assets distributed to provide for your children’s future.
Changes Affecting Beneficiaries or Executors
If a named beneficiary or executor in your will passes away, you’ll need to update your will to redistribute assets or appoint a new executor. This ensures your estate will be distributed according to your wishes and that there’s someone in place to manage the process.
Your beneficiary might also experience major life changes of their own that warrant revising your will. Perhaps they’ve become seriously ill, developed a substance abuse problem, or become disabled in a way that would affect their ability to manage an inheritance. In such cases, you may want to consider setting up a trust instead of a direct inheritance.
Changes in Assets and Financial Situation
Major changes in your financial situation, such as receiving an inheritance, selling a business, or purchasing significant property, should trigger a review of your will. You may want to include new assets in your estate plan or adjust the distribution of your estate based on your new financial reality.
One of the most overlooked aspects of estate planning is identifying if those who will inherit your assets are financially mature enough to handle a windfall. This should be a consideration regardless of the size of your assets, but becomes especially important if there’s been a significant increase in your wealth.
Geographic Moves
Estate laws vary significantly between jurisdictions. If you move to a new state or country, it’s important to review your will to ensure it complies with local laws and remains valid in your new location.
Even though your will would still be legally valid in a different state, estate laws can vary widely from state to state. A will created in your previous state may not lead to an optimal outcome based on your new state’s estate laws.
If you’re moving internationally, the situation becomes even more complex. Different legal jurisdictions, property ownership rules, executor authority, tax implications, and family law variations between countries can render a U.S. will inadequate or unenforceable abroad. International moves typically require starting from scratch with your estate planning.
Changed Relationships and Preferences
Evolving relationships with family members, friends, or charitable organizations may influence how you want to distribute your assets. You might want to include a new close friend as a beneficiary or remove a family member with whom you’ve become estranged.
Just because you initially decided to leave certain assets to someone doesn’t mean that decision is permanent. Similarly, if the person you’ve chosen to be your executor or power of attorney is no longer your preferred candidate, that needs to be addressed as soon as possible by amending your will.
Changes in Tax Laws or Regulations
Significant changes in estate tax laws at the federal or state level may impact your estate planning strategy. Reviewing your will with a legal professional can help you take advantage of new tax-saving opportunities or adjust your plan to minimize tax liabilities for your heirs.
What Happens If You Don’t Update Your Will?
Failing to keep your will current can have serious consequences:
Without regular updates, the courts may be forced to decide how your assets are distributed based on your state’s intestacy laws. Your estate could fall prey to inheritance disputes and protracted legal battles, leaving those you love without financial security.
An outdated will might still list an ex-spouse or a family member you’re no longer close to as a beneficiary. While some states automatically revoke provisions for ex-spouses upon divorce, this isn’t universal, and other relationship changes won’t be automatically reflected.
If you have minor children, your choice of guardian may become inappropriate over time. The designated guardian might become unable or unwilling to serve, or your children’s needs may change, requiring a different guardian.
Changes in tax laws may offer new opportunities to minimize estate taxes or provide more tax-efficient ways to transfer assets. An outdated will may not take advantage of these opportunities, potentially resulting in higher taxes for your estate or beneficiaries.
How to Update Your Will
There are two primary methods for updating a will: a codicil or a new will. A codicil is a separate document that amends specific provisions of your existing will and is typically used for minor changes. For significant changes, it’s often better to create an entirely new will that revokes and replaces the previous one.
Whichever method you choose, you must adhere to your state’s legal requirements for executing a will or codicil. This typically includes putting the changes in writing, signing the document in the presence of witnesses, and having the required number of witnesses (usually two) sign the document.
It is never advisable to attempt updating your will yourself. Although you may feel like you understand estate law, self-prepared wills are rarely accepted in court. Without a lawyer’s professional guidance, it would be difficult to cover all legal requirements and avoid costly mistakes.
Our Recommendation
Your will is the cornerstone of your estate plan, and keeping it current ensures your wishes will be honored. We recommend reviewing your estate plan every three to five years and immediately after any major life event such as marriage, divorce, birth of a child, significant financial changes, or a move across state lines.
For more detailed information about estate planning, you can visit the American Bar Association’s estate planning resources at https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/. The National Association of Estate Planners & Councils also offers valuable information at https://www.naepc.org/home.
Call to Action
Don’t leave your family’s future to chance with an outdated will. Contact our experienced estate planning attorneys today for a comprehensive review of your will and estate plan. We’ll ensure your documents reflect your current wishes and comply with the latest laws.
