The Importance of Updating Your Will After Major Life Events
Creating a will can feel like a huge responsibility, because that’s what it is. If you have one, it shows that you care about the loved ones you will leave behind. However, merely having a will in place isn’t enough—you have to keep it up to date, too. Contrary to what many people might think, creating a will isn’t a “make-it-and-forget-it” task as there are several major life events that could require changes to the document.
At Russell Manning Attorney, I help clients make sure that their wills reflect their wishes even with the passage of time. As an estate planning attorney in Corpus Christi, Texas, I assist in both creating and updating wills and other documents to ensure that they reflect the current situation in your life.
Life Events That Require Updating Your Will
An average person may go through multiple major life events that require changes to the will from the moment of creating the document to the day of their passing. If you choose to ignore the fact that your situation has changed since the time you created your will, you are putting your loved ones and your legacy at risk. Below is a list of life events that may trigger the need to update your will.
1. Marriage or Divorce
When you take vows or part ways, your life undergoes a drastic change. A marriage adds a new person to your family unit, making it essential to update your will to include your spouse as a beneficiary. On the flip side, a divorce might mean you want to remove your ex-spouse from any inheritance or decision-making roles. Failing to update your will after such events can lead to unintended consequences where your assets might not go where you intend them to.
2. Birth or Adoption of a Child or Grandchild
Welcoming a new child or grandchild into your family is a joyous occasion that should be reflected in your will. You will want to ensure that your new family member is included as a beneficiary. Additionally, it may be necessary to specify guardianship for minor children in your will to guarantee their care according to your wishes. Without these updates, your new family members may be left out of your estate plan.
3. Death of a Spouse or Beneficiary
The passing of a loved one is not only a painful event, but also an event that necessitates updates to your will. If a spouse or beneficiary passes away, you need to reallocate their share of your estate. Leaving outdated information in your will can cause confusion and may result in legal challenges, complicating the probate process for your remaining loved ones.
4. Relocation to Another State or Country
Moving to a new state or country may bring with it different laws and regulations that can affect your estate plan. Each state and country may have unique requirements for wills, trusts, and other estate planning documents. If you don’t make the necessary changes to your will after the location, parts of the document could be invalidated.
5. Major Changes in Financial Status
Whether you experience a substantial increase or decrease in your financial status, such changes may require an update to your will. Acquiring new assets or undergoing financial losses might impact the distribution of your estate. Updating your will ensures that your assets are distributed according to your current financial situation, preventing potential disputes and ensuring your beneficiaries receive what you intend for them.
6. Incapacity or Changes in Health
Health changes, whether sudden or gradual, are another reason to update your will. Should you become incapacitated, having an updated will that reflects your current wishes is imperative. Designating someone to make decisions on your behalf and ensuring your healthcare directives are up to date can provide peace of mind and prevent uncertainties during difficult times.
7. Changes in Tax Laws
Tax laws may evolve over years, and changes in these laws can often impact your estate plan. Staying informed about these changes and consulting with an attorney to update your will accordingly can help minimize tax liabilities for your beneficiaries. If you don’t address tax law changes, it could lead to increased taxes on your estate and reduce the inheritance your loved ones receive.
What Happens if You Don’t Update Your Will When You Should?
A will is not set in stone until you leave this world. While you're alive, your will should grow and evolve with you. If major life events happen but you life your will in its original form, you risk the following:
Unintended beneficiaries: One of the most troubling consequences of not updating your will is the risk of your assets going to the wrong persons. Outdated wills can result in assets going to individuals you no longer wish to include or excluding those you now want to benefit. This misalignment can create tension and conflict among family members.
Disputes among family members: An outdated will has the potential to exacerbate existing tensions or create new conflicts. When a will does not accurately reflect your current relationships and wishes, it can lead to preventable conflicts among family members over the distribution of assets. These disputes can strain relationships and result in lengthy legal battles.
Loss of control over decisions in the event of incapacity: If you become incapacitated and your will is outdated, you lose control over who makes crucial decisions on your behalf. An updated will and accompanying documents like a durable power of attorney and healthcare directive ensure that someone you trust will manage your affairs and make decisions according to your preferences.
More expensive or time-consuming probate proceedings: An outdated will can complicate the probate process, making it lengthier and/or costlier for your loved ones. Ambiguities and outdated provisions can lead to legal challenges that delay the distribution of your estate. Keeping your will current helps streamline the probate process, reducing costs and ensuring a smoother transition for your beneficiaries.
Increased tax liabilities: Failing to update your will in light of changing tax laws can result in higher tax liabilities for your estate. This oversight can diminish the value of the inheritance your beneficiaries receive, leaving them with less than you intended.
In Texas, there are two ways to update an existing will: (1) by writing a new will and destroying the old one or (2) by amending your current will with a codicil. While a new will supersedes an old will, destroying the old document helps avoid confusion down the line. Either way, the document you create must meet all legal requirements to be valid.
Need Help Updating Your Will? I Can Help
If you have a will and want to make sure everything is in order, you need to keep the document up to date. Sometimes, it can be confusing to figure out whether or not you need to make changes to your will and, if so, how to do it the right way. At Russell Manning Attorney, I can assist you in updating your will so that it reflects your current needs and wishes. With an office in Corpus Christi, I provide estate planning services throughout South Texas and the Coastal Bend Area. Tell me about your situation during a phone consultation.