You may already know how important it is to write a will as part of a clear and effective estate plan, but how often should you update it? Recent headlines have highlighted the importance of making sure your will remains up to date throughout your life.
In 2019, Aretha Franklin, known as the “Queen of Soul”, sadly passed away. Her relatives later discovered two handwritten wills – one dated 2010 and kept in a locked cabinet, the other dated 2014 and kept underneath a sofa cushion.
So began a five-year-long legal dispute over the validity of each will. Each one named a different son as executor and left conflicting instructions about how Franklin’s estate should be distributed.
In 2023, the document dated 2014 was ruled to be Franklin’s legal will. The story demonstrates how a lack of clarity in your estate plan can have costly and stressful implications for your beneficiaries. So, regular updates and reviews are crucial to ensure that your wishes can be carried out exactly as you’d want them to be.
To keep your will as current and clear as possible, there are some important milestones when you should consider reviewing and updating the document. Read on to learn about five important life events when you may want to think about reviewing yours.
1. If you marry or remarry
If you marry or remarry, your existing will is rendered invalid. So, if you pass away and your will wasn’t updated when you married, your estate would be distributed according to the laws of intestacy.
The laws of intestacy are strict, and usually stipulate that your estate is passed onto your spouse or other immediate family such as your children, siblings, or parents.
This can take much longer to implement than a regular will because it must go through the courts. It can also mean that your estate isn’t passed on according to your wishes.
So, it’s important that you update the will either after you have married, or in anticipation of the marriage, to be sure that your wishes are recorded accurately.
2. If you divorce or separate from your partner
If you have divorced but not updated your will, the same rules would apply as if your ex-spouse had died during your lifetime. They would not be permitted to inherit anything that you had left to them. If they were the only beneficiary named in your will, your estate would be distributed according to the laws of intestacy.
A growing number of people are choosing not to marry. If you and your partner have never been married and you separate, there would be no change to the legal standing of your will. Your ex-partner would still inherit the assets you have assigned to them in your most recent will. This would also apply if you were married but haven’t yet had your divorce finalised.
So, it’s important to review your will if you are in this position to ensure it reflects your new circumstances and your wishes.
3. If you buy or sell a property
Property can make up a sizeable chunk of your estate, particularly as house prices rise. So, if you buy or sell a property, this could have a significant effect on how you wish to provide for your beneficiaries after you pass away.
Property, and what you would like to happen to yours after you pass away, can affect how much Inheritance Tax (IHT) is due on your estate. If the property is your home and you pass it on to your children or grandchildren in your will, your estate benefits from the residence nil-rate band. This increases the amount that you can pass on to beneficiaries free from IHT by £175,000.
So, to ensure your family isn’t at risk of overpaying IHT after your death, it’s important to update your will whenever you buy or sell property.
4. If you have a child or grandchild
Welcoming a new child or grandchild into your life is a joyous occasion, and one that warrants a careful review of your will.
In the first instance, you may wish to update your instructions so that you can provide for your new family member after your death. It’s also key to make sure that any children you have will be looked after by the right person if you were to pass away before they turn 18.
Make sure you and your child’s other parent are on the same page about your wishes, whether you are together or separated, to avoid any difficulties or tension after your death.
5. If one of your beneficiaries or your executor has died
If one of your beneficiaries passes away during your lifetime, it’s important to update your will to reflect your new circumstances. While this can be an emotional and difficult time, it’s sensible to update your will as soon as you are able to.
This is especially important if the executor of your will passes away, because you’ll need to decide who you would like to nominate as your new executor. Ideally, you should also speak to the new executor about this so that they are aware of your wishes and their responsibilities.
You should also update your will at regular intervals
Even if you don’t experience a life event like those listed above, it’s still often a good idea to review your will at regular intervals – ideally every few years. It can be helpful to think of your will as a living document that is frequently changing as you progress through your life.
As well as your circumstances changing, it’s possible that your wishes will change over time too. This is another compelling reason to update your will regularly so that it’s always up to date.
Get in touch
If you’d like to learn more about how we can support you in creating or updating your will and your wider estate plan, please get in touch.
You can email us at financial@barwells-wealth.co.uk or call 01273 086 311.
Please note
The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
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