Estate Planning: When Should You Change Your Will?

Aug 8, 2011
Carol Finch

How Often Should You Change a Will? - Photo by shho

As we get older, changes to finances and lifestyles mean that we ought to alter our wills. How often do you need to update a will and why is this important?

Most of us will make a will at certain life-stages, usually when we have something to leave behind and people to take care of. But, doing this once in a lifetime may not be enough. Changes in your life, your finances and how you wish to divide up your assets often mean that wills need to be amended or sometimes re-written from scratch. How often should you make a review and when should you make changes?

Why Should Wills be Reviewed Regularly?

The original will that you make basically dictates what you want to happen if you die at a certain point in your life. You shouldn't simply set one up and then forget about it – if you ever want to change the way your estate will be managed in the future, you need to amend the original document or make a new will.

Your personal circumstances are likely to change over time and it is important to keep a will up to date so that your wishes will be fully met when you die. Although some estate planners recommend an annual review, you may simply want to make updates as and when you experience certain types of changes in your life. What are the most common triggers for an update?

When Should Wills be Changed?

In basic terms, you need to think about making amendments whenever you experience some kind of event that will affect your assets and your estate. Let's consider five common reasons for changing a will:

Marital status: If you get married, settle down with a new partner, separate, get divorced or your spouse/partner dies, then you may need to alter your will to reflect your new circumstances. You may also need to talk to your lawyer if your spouse or partner moves into a nursing home.
Children: Having children is one of the major triggers for people making a will in the first place. Over time, you may want to add children and grandchildren as they come along and, if you become a step-parent, you may wish to formally include your new family in your estate planning.
Finances: If you experience a major financial change, then you may need to make amendments to compensate. This could include buying a new home, liquidating assets already included in a will or adding new ones into your estate.
Relocation: If you move to a new state you need to check on regional rules. In some cases, you may need to make changes to meet any regulations that are different.
Wishes: You may find over time that you simply change your mind about how your estate should be divided up when you die. You may want to add bequests or remove them.

The key thing to remember here is that you cannot assume that your original will can meet your needs and wishes over time on its own. If you want it to do this, you need to keep it updated.

Codicils or a New Will?

You have a couple of choices here: you can add a new clause to a will with a codicil or you can make a new one. Codicils are generally used for minor changes but aren't always recommended by lawyers – they may only replace your original wishes by restating them in an additional document. Many lawyers will resist using this solution, even if they helped you set up your existing will, and some won't add them at all if they weren't themselves involved in the initial process.

If you don't get this exactly right, it may complicate matters and, in some cases, could open up the possibility of someone contesting the changes you made. Plus, you'll need to go through a legal process to add a codicil and many lawyers will, therefore, recommend that you create a new will that revokes all others. Keep in mind that it is vital to check with your lawyer first before deciding which option to take and that you may also need to amend other documents within your estate plan at the same time.