As estate planning attorneys, we’re often asked, “How often should I update my will?” It’s a good idea to review your will, any trusts you have, and the rest of your estate plan every few years with your estate planning attorney to see if your plan still meets your needs and is up-to-date with the laws. That said, there are also certain situations that should alert you to update your will, even if you have made changes fairly recently.
Seven Situations that Call for a Will Update
In general, any life change that significantly affects your assets or the people to whom you wish to leave them calls for a review of your estate plan, including:
Getting Married or Divorced
A change in marital status, including a marriage or divorce, definitely means that you need to update your will. If you had a will before you got married and your spouse isn’t the primary beneficiary, he or she may get less than you intended them to have.
A bigger worry for most people is the prospect of an ex-spouse receiving any of their estate. The good news is that in Michigan and most other states, divorce automatically revokes provisions of your will granting property or powers (like serving as personal representative) to the ex-spouse. Even so, it’s always better for those left behind if your will reflects your current life circumstances, including your marital status.
If you remarry after a divorce, an estate plan update is even more critical, especially if you have a blended family. It’s wise to consider a prenuptial agreement in those circumstances.
When You Have Children
Welcoming a child into the family is often the first time many people think about making an estate plan. For the first time, you are responsible for someone who is completely helpless and utterly dependent on you. It’s hard to think about what might happen if you were no longer there to care for them, but it’s essential to plan for that possibility.
That includes naming a guardian for your child or children, someone you trust and ideally to whom your children are close. A guardian looks after your children’s personal needs while they are still minors. A guardian can be named in a will, but the estate planning attorneys at BRMM often prefer to do so in a separate document for guardian designation.
Do you have to update your will after the birth of every child? Yes, you should, to make your intentions as clear as possible.
When Your Children Become Legal Adults
A child’s eighteenth birthday is cause for celebration, and also cause to update, or at least review, your will. Here’s why: when your child turns eighteen, they become a legal adult. If you’ve left a share of your estate to that child in your will, they become entitled to it in full.
Even the most mature eighteen year old typically doesn’t have the financial savvy needed to manage an inheritance, especially a significant one. If your goal is to help your child get an education and make sure that they are financially secure as they learn to navigate adulthood, you should consider creating a living trust.
A trust not only avoids probate, but allows you to exercise some control over how and when your child receives distributions, protecting both them and their assets. You don’t need to wait until your child turns eighteen to create one; you can establish a trust at any time.
When a Loved One Has Special Needs
If you made your will before a beneficiary became disabled, you may want to take a look at your estate plan and create a special needs trust. Inheriting assets outright through a last will and testament could make your loved one ineligible for government benefits on which they depend. A special needs trust will allow them to receive funds from your estate without jeopardizing their means-tested benefits.
Also, if you have a child with special needs who is unlikely to be able to live independently, you should contact an estate planning attorney to ensure that you are able to continue acting as their legal guardian after they reach eighteen.
When You Move to a Different State (or a Different House)
In general, your will is still valid if you move from one state to another, but the new state may have laws that affect provisions in your will, potentially making them invalid and creating unforeseen consequences.
Of course, moving from house to house within a state doesn’t affect the legality of your will, but it may affect a major asset named in your will. If your house is specifically identified in your will, you should amend your will after a move to reflect your new home.
Acquiring, or Disposing of, Significant Assets
If your will includes bequests of specific assets, like artwork, a vehicle, or jewelry, you should update your will to reflect any such assets you no longer own. This is particularly true if your loved ones may be unaware that you disposed of the property.
Likewise, if you acquire a new asset that you want to go to a particular individual, you should update your will to indicate that.
Also, if you inherit money, then you should reach out to your estate planning attorney to review your will, explore the option of a revocable living trust, and review the current estate tax laws.
Changes in Tax Law
While most people’s estates are not subject to estate tax, it’s a good idea to review your estate plan any time there is a sweeping change in tax law that could affect your estate. Your estate planning attorney will advise if there are any structural changes you should make to minimize exposure to estate tax or other taxes.
Work with an Experienced Michigan Estate Planning Attorney
The skilled estate planning attorneys at Barron, Rosenberg, Mayoras & Mayoras help people create estate plans tailored to their goals and their family’s needs. We are here for you as your family, and your planning needs, evolve. Schedule a consultation today by calling (248) 641-7070 in Michigan or (941) 222-2199 in Florida to learn how we can assist you. You can also use our simple online contact form.