A Will is a crucial legal document that outlines how you want your assets distributed and your affairs handled after your death. However, a Will isn't a static document; it needs to be reviewed and updated periodically to ensure it accurately reflects your current wishes and circumstances. Major life events, in particular, can significantly impact your estate plan and necessitate updating your Will.

Why Update Your Will?

• Ensures Your Wishes Are Followed: Life changes can alter your relationships, assets, and intentions. Updating your Will ensures your estate plan continues to align with your current wishes.
• Protects Your Loved Ones: An outdated Will can lead to unintended consequences, such as assets going to unintended beneficiaries or disputes among family members.
• Avoids Legal Complications: Failing to update your Will can result in your estate being distributed according to outdated laws or previous versions of your Will, potentially causing confusion and legal challenges.
• Maintains Control: Updating your Will allows you to retain control over your assets and who benefits from them, even as your life evolves.

Major Life Events That Necessitate Updating Your Will

Here are some key life events that should prompt you to review and update your Will:

• Marriage or Divorce: Marriage generally revokes a Will, unless it was made in contemplation of that marriage. Divorce or separation can also significantly impact your estate plan, potentially affecting how assets are distributed to your former spouse. In NSW, a divorce will revoke the gifts made in a Will to your former spouse.
• Birth or Adoption of a Child: When you have a new child, you'll want to ensure they are included in your Will and that proper arrangements are made for their care, including the appointment of guardians.
• Death of a Beneficiary or Executor: If someone named in your Will as a beneficiary or executor dies, you'll need to update your Will to reflect this change and appoint a new beneficiary or executor.
• Significant Change in Assets: Major changes in your assets, such as buying or selling a house, starting or selling a business, or receiving a substantial inheritance, can significantly impact your estate and require updates to your Will.
• Change in Financial Circumstances: Significant changes in your financial situation, such as substantial debt or a significant increase in wealth, may necessitate a review of your Will to ensure it aligns with your current circumstances.
• Changes in Superannuation or Life Insurance: While superannuation and life insurance are often dealt with separately from your Will through beneficiary nominations, it's essential to ensure these nominations are consistent with your overall estate plan.
• Mental Incapacity of a Beneficiary: If a beneficiary develops a mental incapacity, you may need to establish a trust or make alternative arrangements to ensure their inheritance is managed appropriately.
• Changes in the Law: Estate laws can change over time, potentially affecting the validity or effectiveness of your Will. Regular reviews ensure your Will complies with the latest legal requirements.
• Moving to Another State or Country: If you move to a different state or country, the laws governing Wills and estates may differ. You should consult with a legal professional to ensure your Will is valid and effective in your new location.

How to Update Your Will

There are a few ways to update your Will:

• Making a codicil: A codicil is a supplementary document that amends your existing Will. It must be signed and witnessed in the same way as a Will. Codicils are suitable for minor changes.
• Creating a new Will: For significant changes, it's generally recommended to create a new Will that revokes the previous one. This ensures there's no confusion about which document represents your final wishes.

Key Takeaway

Updating your Will after major life events is crucial to ensure your estate plan remains valid, reflects your current wishes, and protects your loved ones. Don't view your Will as a one-off document but rather as an evolving plan that should be reviewed and updated as your life changes. Consulting with an estate planning lawyer can provide personalised advice and ensure your Will accurately reflects your intentions.