With a new year comes the declarations of a new you but how long has it been since you reviewed your Will and Estate Planning?
Your Will and Estate Planning, is not a matter of ‘set-and-forget’. As your life and circumstances change so should your succession plan.
Ideally, you should review your Will every 3-5 years to reflect your current situation, but if you’ve passed the 5-year mark, don’t put it off any longer! Here are five reasons you should review your Will this year in 2023.
#1 Relationship Status Change
Most people do not know that their previous Will is voided when you the testator (will-maker) marries. If you are recently married and haven’t updated your Will, you must do so to ensure your succession plan is valid.
If a will is invalid, your estate will be distributed according to intestacy rules.
In the same vein, any change to your relationship status, being divorce or entering into a new relationship, is a reason to update your Will and ensure those you care about are taken care of.
#2 Change to children/ dependents
The primary goal for majority of testators is to provide for children and other dependents. It is of uptmost importance that you update your Will upon the birth of a child so they are provided for, and so you can name an appropriate guardian.
Whilst reviewing your Will, you should ensure the original guardian is still the most appropriate person to take care of your children, should something should happen to you. If a will is not updated regularly, there is a risk that the original guardian may have since passed or are no longer capable of looking after a child/children. This is also a good time to review if the Executor or Trustee or alternates appointed in holding the estate on trust for a minor is also the right person.
In an age where families come in all shapes and sizes, it is essential to update your Will to reflect your current family situation. Blended families can include children from previous marriages or adopted children, and updating a Will to provide for all your dependents, not just biological children, is a good idea.
Another reason to update your Will occurs when your children reach the age of 18 years old. When your children reach this age, you may like to review how your estate is distributed or name them as executors of your estate.
#3 A Named Individual Has Passed
Sadly there are instances where people outlive those they’d hoped to gift assets to or appoint as executor in their Will. Should anyone named in your Will pass away (Executor or beneficiary), you need to update your succession planning.
#4 Change of Assets and Structures
Changing assets, such as selling/buying property or starting a business and selling a business, can significantly change the value of your estate. These changes call for a review of your Will to accurately reflect your current financial situation and structures.
#5 Taxes
There are two things certain in life…death and taxed. Though it may seem unusual to update your Will on account of tax laws, however tax laws can impact the distribution of your estate.
Tax laws are constantly changing, and a reviewing your Will on a regular basis can ensure your estate is distributed in a certain way to minimise any tax and maximise benefit for your beneficiaries.
#6 Relocation
In Australia, each state has specific legislation regarding Wills and Estate Planning. If you, like many in recent years, have moved interstate, you should review your Will to align with the rules and procedures of the jurisdiction you now live in.
In the same way, laws surrounding Wills and succession will be different if you live overseas, so you should update your Will to reflect this.
Arrange a meeting
Arrange a meeting with one of our qualified and experience Succession Planning lawyers today, and we can help you review and update your Will as soon as possible.
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