The purpose of a will is to make your wishes known and to ensure that at the time of your death, there is someone with authority to deal with the administration of your estate. Often, people create their wills following major life changes. This might include marriage, divorce, a new addition to the family or the acquisition of property or other assets.
However, over time, our circumstances and priorities can change, almost without noticing. This may mean that when a person dies unexpectedly, their will no longer represents their most up-to-date wishes. Although it is possible to vary the terms of a will after death, this requires the agreement of all the affected beneficiaries and potentially an application to court if the change affects minor children. This can result in additional stress and costs for those left behind.
Understandably, people may put off the practice of regularly reviewing their wills, possibly assuming that no updates are required. They may believe that the process is costly or complicated, or perhaps be uncomfortable considering their own mortality.
Nevertheless, there are many good reasons to regularly review your will when you are healthy and not under the stress of illness or other life stressors.
Some examples of key points to review include:
Your Executors
Are your executors still the best placed to act? You may have appointed your parents or friends who are older than you. Perhaps you chose them because they were experienced, trustworthy and in good health at the time. However, they may no longer be the best people to act, or they may now be unsuitable due to changes in their own circumstances.
Similarly, you might have appointed friends or family while your children were minors. If those children are now adults, it may be more appropriate for them to be appointed as executors.
If any of your named executors have died, you will need to consider whether there is an appropriate replacement named who can act.
Changes in Relationship and Marital Status
Have you been married, divorced or separated in the time since you last prepared your will? It is important to remember that a subsequent marriage will revoke your current will, unless it was made in contemplation of the marriage to that specific person.
If you divorce, your will treats your former spouse as having predeceased you. However, you may have separated but not formally divorced or finalised your financial arrangements. It is vital that you review your will to consider whether updates are required following a change in relationship status.
Guardians for Children
If you have minor children, have you included a guardianship clause to specify who you would like to care for them if those with parental responsibility have died? If you have named guardians, are these still the best people to care for your children if needed?
Beneficiaries
Have there been changes to who you would like to benefit?
There may have been new additions to the family since your last will was prepared. You may want to consider adding children or grandchildren to receive a cash legacy or a share of the residuary estate. Perhaps you have a new dependent (minor or otherwise) that you would like to include.
If you have possession of any family heirlooms or items of value, have you specified who you would like to receive these? Alternatively, have you lost touch with some of your beneficiaries and wish to remove them from the will?
For charitable legacies, you may wish to add or amend the charities named to benefit those charities that hold significance for you.
Trusts
If there are Trusts within your current will, are these Trusts still the most tax-efficient and appropriate way to achieve your desired result? A change in circumstances may mean that you wish to simplify your will, perhaps to utilise available tax allowances.
Alternatively, you may want to explore whether the inclusion of a Trust could help achieve your goals, for example, to ring-fence assets for the benefit of a named individual or to safeguard assets against care fees or remarriage following the first death for a couple.
OverseaS Assets
If you have acquired property or other assets overseas, it may be advisable to speak to a dual-qualified lawyer to prepare a separate will covering the overseas territory.
Changes to the Law and Inheritance Tax
It could be that changes in the law or inheritance tax legislation have affected the suitability of your will. As part of reviewing your will, you may wish to take tax planning advice into consideration of the current tax rules.
Your will is one of the most important documents you will prepare during your lifetime, and it is equally important to keep it up to date. It is recommended to review your wills every three to five years, or as your circumstances change. This helps avoid the risk of an outdated document distributing your estate in a way that does not reflect your current wishes and helps ensure that the legacy you leave behind looks after those you wish to benefit most.
