Life is full of surprises, some pleasant and others not so much. As we journey through different stages, our priorities and circumstances evolve. One aspect that often gets overlooked in the hustle and bustle of life changes is estate planning. You might have penned down your will at a significant moment in your life, but when was the last time you gave it a glance? Regularly reviewing your will ensures that your estate plan aligns with your current wishes and circumstances. Let’s explore when and why you should consider reviewing your will.
Understanding the Essence of Estate Planning
Estate planning is not just about deciding who gets your assets after you’re gone. It’s a comprehensive approach to managing your financial wellbeing and ensuring your loved ones are taken care of in your absence. A well-structured estate plan can mitigate legal hurdles, minimise taxes, and avoid familial disputes. Given its complexity, engaging with estate planning lawyers can provide peace of mind, ensuring that your estate is managed according to your wishes.
Key Life Events Triggering an Estate Plan Review
Life doesn’t stand still, and neither should your estate plan. Here are pivotal moments that necessitate a review of your will:
Marriage
Marriage signifies a profound commitment, intertwining not just two lives but potentially two sets of assets, liabilities, and future financial objectives. This joyous union necessitates a thorough review and possible update of your estate plan for several reasons:
- Inclusion of Your Spouse: The most immediate change is incorporating your spouse as a key beneficiary in your estate plan. This ensures that your assets are directed towards your life partner, safeguarding their future should anything happen to you.
- Joint Assets: With marriage often comes the amalgamation of assets. Whether it’s purchasing a home together or merging savings accounts, these joint assets need to be reflected and addressed in your estate planning documents.
- Future Planning: Looking ahead, you may have plans for children, further investments, or retirement savings. Updating your will post-marriage allows you to outline these future intentions, ensuring that your spouse plays a central role in these plans.
Divorce
Conversely, divorce represents a significant unraveling of the union once formed, affecting not just emotional ties but legal and financial ones as well. The dissolution of a marriage brings about a crucial juncture for reviewing and revising your estate plan:
- Removing Your Ex-Spouse: Perhaps the most pressing action post-divorce is to reassess your will and other estate documents to remove your ex-spouse as a beneficiary, unless you wish for them to remain for specific reasons. This ensures that your assets will not inadvertently go to your former partner.
- Revising Beneficiaries: Divorce often leads to a reshuffling of priorities, especially if there are children involved. You may need to update your will to adjust guardianship details or to reallocate assets to children, family members, or new beneficiaries in light of the separation.
- Asset Division: The division of assets during a divorce can significantly alter your financial landscape. It’s imperative to review your estate plan to reflect this new state of affairs, ensuring that your will accurately represents your current asset distribution and ownership.
Both marriage and divorce underscore the dynamic nature of life and the necessity for your estate plan to mirror these changes. It’s not merely about legal compliance but about ensuring that your wishes, in their most current form, are honored. In both scenarios, consulting with estate planning lawyers can provide clarity and direction, helping navigate the complexities introduced by these life events. They can offer tailored advice on updating your will, ensuring it aligns with your present circumstances and future aspirations.
Birth or Adoption of a Child
Welcoming a new family member is a joyous occasion and a critical time to update your will. You’ll want to include provisions for their care and inheritance, possibly setting up trusts or nominating guardians.
Acquiring or Disposing of Significant Assets
Whether you’ve bought a new home, sold a business, or received an inheritance, these changes in your asset portfolio need to be reflected in your estate plan to ensure proper management and distribution.
Changes in Relationships
Life’s tapestry includes the ebb and flow of relationships. New friendships, estrangements, or the loss of loved ones can alter whom you wish to include in your estate plan.
Health Changes
A significant change in your health condition may prompt a reconsideration of your estate plan, particularly regarding decisions around medical care and power of attorney.
Moving Interstate or Overseas
Relocating can have substantial implications on your estate plan due to differing legal jurisdictions. Reviewing your will with estate planning lawyers familiar with the laws in your new location is crucial.
Practical Steps to Reviewing Your Will
Schedule Regular Reviews
Mark your calendar for a biennial review of your estate plan. This routine check ensures your will remains aligned with your current life situation and estate laws.
Consult With Estate Planning Lawyers
A professional review by estate planning lawyers can uncover potential issues and provide solutions that align with your objectives. Their insights can be invaluable, especially when navigating complex family dynamics or significant asset changes.
Communicate Changes With Loved Ones
Open discussions with your beneficiaries about changes to your estate plan can prevent misunderstandings and ensure your wishes are clear.
Update All Relevant Documents
A change in one area of your estate plan often impacts others. Ensure that changes in your will are consistently reflected in all related documents, such as life insurance policies and superannuation nominations.
Conclusion
Life’s constant changes demand attention to many aspects, not least your estate plan. Regularly reviewing and updating your will, with the guidance of skilled estate planning lawyers, ensures that your wishes are respected and your loved ones are cared for as you intend. Remember, an estate plan is not a set-and-forget document but a living blueprint that must evolve with your life’s journey. Making it a priority to review your estate plan in light of significant life changes is not just prudent; it’s a profound act of care for those you love.
