A will is not a one-time document—it should evolve as your life circumstances change. Many Australians assume that once they’ve created a will, their estate planning is complete. However, failing to update your will regularly can result in outdated provisions, unintended beneficiaries, and legal disputes among your loved ones. Understanding wills and estate planning ensures that your assets are distributed according to your current wishes and personal circumstances.
When Should You Update Your Will?
A will should be reviewed and updated whenever a significant life event occurs. Keeping your will current helps avoid complications and ensures your estate is handled smoothly after your passing. Key moments to update your will include:
1. Marriage or Divorce
When you get married, your existing will may become void unless it explicitly states that it was made in contemplation of marriage. Similarly, if you divorce, your ex-spouse may still be listed as a beneficiary or executor, potentially causing conflicts.
A major reason to update your will after a divorce is to prevent unintended claims on your estate. If your will still names your former spouse as a beneficiary, they may be legally entitled to inherit assets, which can create conflict among your intended heirs. Additionally, if your executor is your ex-spouse, they will have the legal authority to manage your estate unless explicitly removed. Updating your will ensures that your assets go to those you currently wish to benefit, preventing future legal challenges.
If you remarry, consider how your assets will be distributed between your new spouse and children from a previous relationship. Without a proper update, legal requirements for wills may not reflect your true intentions, leading to disputes or unintended claims against your estate. In blended families, estate planning requires even more precision to ensure that all dependents receive a fair share without unnecessary disputes.
2. Birth or Adoption of a Child
The arrival of a child significantly impacts estate planning. Updating your will ensures that:
- Your child is legally recognized as a beneficiary.
- Guardianship arrangements are in place should something happen to you.
- Trusts are established for their financial security.
Failing to include your children in your will could lead to a situation where they inherit less than intended or are forced to contest the will for rightful claims. Beyond inheritance, appointing a guardian in your will is critical. If no guardian is named, the court may decide who raises your child, which might not align with your wishes. Setting up trusts allows you to control how and when your children receive their inheritance, preventing mismanagement and ensuring financial stability for their future.
3. Death of a Beneficiary or Executor
If a named beneficiary passes away, your assets may not be distributed as you originally intended. Similarly, if your appointed executor dies or becomes incapable of managing your estate, your estate may be left without proper administration.
Ensuring that your will remains valid by updating beneficiaries and executors will help avoid unnecessary delays and court interventions. In some cases, failing to update your executor may result in a court-appointed administrator taking control of your estate, which could lead to higher legal fees and complications.
Additionally, if your primary beneficiary has passed away, you must consider alternative inheritance options. Without clear secondary beneficiaries, your assets may be distributed based on state intestacy laws, which might not align with your intentions.
4. Significant Financial Changes
A sudden increase or decrease in wealth—whether through inheritance, business success, property purchases, or investments—should prompt a will review. Your will should reflect the current value of your assets and ensure fair distribution among heirs.
If your estate’s value significantly changes and your will is not updated, some beneficiaries may receive a disproportionate share, or tax implications may arise that could have been avoided with proper planning. For example, acquiring new properties or investments may require the creation of a trust to protect those assets. Additionally, if you have accumulated debt, it is important to outline how liabilities should be settled to prevent heirs from facing unexpected financial burdens.
5. Change in Laws or Regulations
Estate planning laws can change over time. Tax laws, superannuation policies, and inheritance rules may impact how your estate is distributed. Regularly reviewing your will with an estate planning lawyer ensures that your will remains compliant with current laws and maximizes tax efficiency for your heirs.
For instance, changes in taxation policies on inheritances or capital gains can significantly impact beneficiaries. If your will does not consider these factors, your heirs may face higher tax liabilities than necessary. Staying up to date with legal changes helps ensure that your estate is structured in the most beneficial way possible.
FAQs About Updating Your Will
1) Can I update my will myself?
Yes, you can make changes to your will through a legal document called a codicil, but it must be signed and witnessed properly to be valid. However, if major changes are required, creating a new will is often a better option to avoid confusion or disputes. A codicil is best suited for minor updates, such as changing executors or adding small bequests, whereas a new will is recommended for significant changes like altering beneficiaries or asset distribution.
2) How do I ensure my will remains legally valid?
To maintain a legally valid will, ensure that all changes are properly signed and witnessed. Consulting an estate planning lawyer can also help confirm that your will complies with current laws and best practices. Some jurisdictions require specific witnessing conditions, such as two independent witnesses who are not beneficiaries, to validate changes.
3) What happens if I don’t update my will?
If your will is outdated, your assets may be distributed in ways you did not intend. This can result in disputes, unnecessary legal fees, and claims against your estate by unintended beneficiaries. An outdated will may also cause financial strain on your heirs, especially if tax-efficient strategies have not been updated.
4) Should I update my will if I move to a different state or country?
Yes, different states and countries have varying inheritance laws. If you relocate, reviewing your will with a local lawyer ensures it remains legally enforceable and reflects the regulations of your new jurisdiction. Some laws may invalidate previous estate plans or impose new restrictions on asset transfers.
5) Can I leave instructions outside of my will?
While some informal instructions (such as letters to family members) can be helpful, they are not legally binding. The only way to ensure your wishes are carried out is to include them in a properly executed will. Additional planning tools, such as trusts and advance directives, can further support your estate planning objectives.
Keep Your Will Updated for Peace of Mind
Updating your will regularly is essential to ensuring that your estate plan aligns with your current wishes, legal requirements, and financial situation. By reviewing it periodically and making necessary updates, you can avoid legal complications, minimise disputes, and protect your loved ones’ financial futures. For expert legal guidance on wills and estate planning, visit Ignify Legal.
Please call us today at (02) 8319 1032 or submit an online enquiry.
