How frequently should you update your will?
Many people make a will, sign it and place it somewhere safe, rarely giving it another thought. However, a will should never be viewed as a document that is prepared once and forgotten. Instead, it should be regarded as an important part of your financial and personal planning that should be reviewed periodically throughout your life.
‘One of the most common misconceptions we hear is that once a will has been signed, there is nothing more to do,’ says Carrie Thomas, Solicitor in the Private Client team at HRS Family Law Solicitors. ‘In reality, a will should be reviewed regularly. Life changes, the law changes and your wishes may also change over time. Taking the opportunity to review your will every few years can provide valuable peace of mind that your estate will still pass exactly as you intend.’
HRS Family Law Solicitors outlines some of the key reasons why reviewing your will should form part of your long-term estate planning.
Why reviewing your will matters
A will reflects your wishes at the time it is signed, but life rarely stands still. Families grow, children become adults, relationships begin and end, businesses are bought and sold, and financial circumstances can change considerably over the years.
What seemed entirely appropriate when your will was prepared may no longer be suitable many years later. You may have acquired significant new assets, sold property referred to in your will or simply changed your mind about how you would like your estate to be divided.
Reviewing your will regularly allows you to consider whether it still reflects your wishes and whether your chosen executors and beneficiaries remain appropriate. It can also identify practical issues before they become a problem for your family.
Failing to review your will may lead to unintended consequences. For example, it could leave out a new family member, include gifts that no longer make sense, appoint executors who are no longer able or willing to act, or fail to take advantage of more effective estate planning opportunities. Taking the time to review your will now can often save your loved ones significant expense and uncertainty in the future.
When should you review your will?
There is no legal requirement to review your will at regular intervals. However, as a general rule, it is sensible to revisit it every three to five years, even if your circumstances appear largely unchanged.
A periodic review provides an opportunity to check that your wishes remain the same and that your will continues to reflect your personal and financial circumstances. Often, the review confirms that no amendments are necessary, providing reassurance that your affairs remain in good order.
Equally important is reviewing your will whenever a significant event occurs. Major changes in your personal life or finances can have an immediate impact on your estate planning. Updating your will promptly after such events helps ensure your wishes continue to be accurately recorded and reduces the likelihood of problems arising later.
Key events which may require an update
Marriage, divorce or separation
Marriage has a significant legal effect on an existing will. In most circumstances, marrying will revoke an earlier will unless it was specifically prepared in contemplation of that marriage. This means your previous will may no longer be valid.
Divorce does not automatically invalidate your entire will, but it generally treats your former spouse as though they had died for the purposes of gifts and appointments made in the will. Separation without divorce, however, does not have the same effect, meaning your former partner could still benefit under your existing will if it is not updated.
For this reason, anyone experiencing a significant change in their relationship status should seek advice about reviewing their will as soon as possible.
The birth of children or grandchildren
The arrival of children or grandchildren often changes how people wish to distribute their estate.
Parents may wish to appoint guardians for young children, establish trusts until children reach a suitable age or ensure assets are protected for future generations. Grandparents may also decide they wish to leave gifts directly to grandchildren or make provision for education or future financial security.
Reviewing your will following the expansion of your family helps ensure that no one is unintentionally overlooked.
Changes in assets, property or business interests
Your estate may look very different from when your will was first prepared.
You may have purchased additional property, sold your family home, inherited wealth, built a successful business or accumulated substantial investments. Equally, assets specifically referred to within your will may no longer exist.
A review provides an opportunity to ensure your estate planning still reflects your current financial position and that your will deals appropriately with your present assets rather than those you owned many years ago.
Business owners should also review their wills regularly to ensure they remain consistent with partnership agreements, shareholder arrangements and succession planning objectives.
The death or ill health of executors or beneficiaries and changing circumstances
Choosing the right executors is an important part of preparing your will. However, the people you originally appointed may no longer be the most suitable individuals to administer your estate.
Advancing age, ill health, changes in family relationships or the death of an executor may all mean that different appointments would now be more appropriate.
Similarly, beneficiaries’ circumstances may change significantly over time. A periodic review allows you to consider whether your will continues to reflect your wishes in light of those changing circumstances.
Similarly, your beneficiaries’ own circumstances may change significantly over time. A child or other beneficiary who was financially secure when you prepared your will may later be going through a divorce, facing financial difficulties or running a business that exposes them to creditor claims. In those circumstances, you may wish to consider whether greater asset protection, such as leaving assets within a trust rather than outright, would better safeguard your family’s inheritance.
Conversely, a beneficiary may have become substantially wealthier since your will was prepared. Leaving significant additional assets to a beneficiary with an already sizeable estate could increase the inheritance tax payable on their own death. A review of your will provides an opportunity to consider whether alternative arrangements, such as benefiting the next generation directly or incorporating greater flexibility into your estate planning, would better achieve your long-term objectives while remaining tax efficient.
Tax and succession planning considerations
Estate planning is about much more than deciding who inherits your assets. A carefully prepared will can also help ensure your estate passes as efficiently as possible from an inheritance tax perspective.
Tax legislation changes over time, and reliefs and exemptions may be introduced, amended or withdrawn. At the same time, the value of your estate may increase considerably as property prices rise, investments grow or business interests become more valuable.
A will that was tax-efficient when it was prepared may no longer achieve the best outcome many years later. Regular reviews allow your solicitor to consider whether your estate planning remains effective in light of current legislation and whether changes could reduce the tax burden on your beneficiaries.
How we can help
Whether your circumstances have changed significantly or you simply wish to ensure your existing will remains appropriate, obtaining professional advice can provide reassurance that your affairs remain properly organised.
We can assist by:
- reviewing your existing will and advising whether any changes are required;
- updating your will following marriage, divorce, the birth of children or other significant life events;
- advising on inheritance tax and wider succession planning;
- preparing a codicil where appropriate or drafting a completely new will where this is the better option;
- reviewing your executors, trustees and guardians; and
- ensuring your estate planning continues to reflect both your wishes and your current financial circumstances.
For advice about reviewing or updating your will, please contact Carrie Thomas, Solicitor, in our Private Client team on 01922 241 585 or by email at ct@hrsfamilylawsolicitors.com.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
