A will is a crucial legal document that dictates how your assets will be distributed after your death. However, many people draft their will and then neglect to review it regularly. This blog explores why it is vital to review your will periodically, how changing circumstances can impact your estate plan, and practical steps to ensure your will remains up-to-date.
Why Regular Reviews Are Essential
- Life Changes
Life is dynamic, and significant changes in personal circumstances can affect your will. Major life events such as marriage, divorce, the birth of children, or acquiring new assets may necessitate updates to your will.
Example: If you get married, your previous will may no longer reflect your wishes, especially if it was drafted before your marriage. Similarly, the birth of a child might require you to update guardianship provisions and ensure that your estate plan accommodates your new family member.- Changes in Financial Status
Your financial situation can evolve over time due to changes in income, investments, or property ownership. Regularly reviewing your will ensures that your estate plan accurately reflects your current financial status and intentions.
Example: If you inherit a significant amount of money or acquire valuable assets like real estate, your will should be updated to incorporate these changes and ensure they are distributed according to your wishes.- Updates in Tax Laws
Tax laws and inheritance regulations are subject to change. Reviewing your will periodically helps you stay compliant with current laws and optimise your estate plan for tax efficiency.
Current Trend: Recent changes to inheritance tax (IHT) thresholds and reliefs might impact how your estate is taxed. Staying informed about these changes and updating your will accordingly can help minimise potential tax liabilities for your beneficiaries.How Often Should You Review Your Will?
- After Major Life Events
Review your will after significant personal events such as marriage, divorce, the birth of a child, or the death of a loved one. These events can alter your wishes regarding asset distribution and guardianship.
- Every Three to Five Years
Even without major life changes, it’s advisable to review your will every three to five years. This ensures that your will reflects any minor adjustments in your financial situation or personal preferences.
Practical Tip: Set a reminder to review your will every few years or consult with your solicitor to schedule regular reviews.- When Laws Change
Be aware of any changes in estate planning laws or tax regulations that might affect your will. Consult with a legal professional to understand how these changes impact your estate plan and make necessary adjustments.
Practical Steps to Ensure Your Will Remains Up-to-Date
- Consult with a Legal Professional
Engage with a solicitor who specialises in estate planning to review your will. They can provide expert advice on how changes in laws or your circumstances affect your will and ensure that it meets legal requirements.
- Communicate with Your Beneficiaries
Discuss your will with your beneficiaries to ensure they understand your intentions and that there are no surprises after your death. Open communication can help avoid disputes and ensure that your wishes are honoured.
- Document Changes Thoroughly
When making updates to your will, ensure that all changes are documented clearly and legally. Use formal amendments or create a new will if necessary, and make sure all copies of the old will are destroyed to prevent confusion.
- Keep Your Will in a Safe Place
Store your will in a safe, easily accessible location, such as a safety deposit box or with your solicitor. Ensure that your executors and beneficiaries know where to find it.
Conclusion
Regularly reviewing your will is essential to ensure that it accurately reflects your current wishes and circumstances. By considering major life events, changes in financial status, and updates in tax laws, you can keep your estate plan relevant and effective. Engaging with a legal professional and maintaining open communication with your beneficiaries will help ensure that your will remains a true reflection of your intentions and provides peace of mind for you and your loved ones.
