How do I know if I need to update my Will?
A Will, crafted by our expert Will Lawyers in Brisbane, is a legal document that outlines the distribution of an individual's assets after their demise. This crucial document requires regular review and updates, aligning with changes in an individual's wishes and circumstances as outlined in their estate plan. It is imperative to comprehend the reasons prompting the need for updates if you already have a Will.
Significant change in circumstances
Firstly, you may need to update your Will if you have had a significant change in your personal circumstances. This could include getting married, divorced, or having a child. When these events occur, it is important to review your Will to ensure that it reflects your current wishes and that your assets are distributed as you intend.
Additionally, few willmakers know that marriages and divorces can automatically revoke parts of a will, or even the entirety of the will, by operation of law.
You will likely also have different wishes if these events arise, including how you dispose of your assets, or who you are appointing as your Executor. Similarly, if you have a child, you may want to name them as a beneficiary or appoint a guardian for that child. For more information on guardianship, read our FAQs here.
Acquired or disposed of significant assets
Another reason to update your Will is if you have acquired or disposed of significant assets or property. If you have inherited property or money, or if you have sold or given away assets, it is important to update your Will to reflect these changes. This ensures that your assets are distributed according to your wishes and that your beneficiaries receive what you intended.
To put a testamentary trust in your will
The third reason you may wish to update your Will is if you have acquired enough wealth to warrant having a testamentary trust in your Will. Doing so adds protects your beneficiary’s inheritance from the Family Court, for example, if they break up with a spouse, or if they face a bankruptcy order. Including a testamentary trust in your Will also allows for greater control over the beneficiary’s inheritance, in the case that they lack the maturity to be handed a significant amount of money at that time in their life. It can also offer significant taxation benefits.
If you have changed your mind
If you have changed your mind about the distribution of your assets or who you want to act as executor or guardian for your children, you should consider updating your Will. It is not uncommon for individuals to change their minds about how they want their assets distributed or who they want to take care of their children after they pass away. If this happens, it is important to update your Will to reflect these changes.
If beneficiaries or appointees have passed
The fifth reason an update may be required is if one of the beneficiaries or your named executor has passed away. If a beneficiary named in your Will dies before you, it is important to update your Will to reflect this change. This ensures that your assets are distributed according to your wishes and that your remaining beneficiaries receive what you intended.
Similarly, you should update your will if the executor you have named is no longer living, and you have no one appointed as a backup.
To reflect changes in the law
Another reason to update your Will is if you want to update it to reflect changes in tax laws or other legal requirements. Tax laws and legal requirements can change over time and it is important to ensure that your Will complies with these changes. Doing so may lead to a lower tax burden on your beneficiaries.
To summarise
You may need to update your Will if:
You have had a significant change in your familial circumstances, such as a marriage, divorce or a birth
You have acquired or disposed of significant assets
You have acquired enough wealth to justify including a testamentary trust in your will
You have changed your mind regarding the disposal of your assets or regarding who is to be appointed Executor or the guardian of your children or pets
A beneficiary of the Will has passed away
Changes in the law warrant a reconsideration of your estate plan
It is good practice to review your Will regularly to ensure that it still reflects your wishes and to consider if any changes may be necessary. You should review your Will every three years to ensure that it reflects your current wishes. Hiring an experienced Estate Lawyer to assist in updating your Will is crucial, as DIY Wills can be expensive in the long run. To book a consultation to review your Will and overall estate plan, click the button below.