When it comes to estate planning, having a will is essential. This legal document outlines how your assets will be distributed after your death. It ensures your wishes are respected, but your will isn’t a set-it-and-forget-it document.
Your will should be updated regularly, especially after significant life events. In this article, the Michigan estate lawyers with Legacy Counsel will explore why revising your will is necessary and how to ensure your estate plan reflects your life as things change.
Why Updating Your Will Matters
Whether you’re experiencing a major life event or simply reassessing your goals, updating your will ensures that your estate plan reflects your current wishes and circumstances.
Here are the key reasons to keep your will up to date:
1. Address Changes in Assets
Your assets are likely to change over time. Whether you acquire new property, start a business, or experience significant financial changes, it’s important to update your will to reflect these changes.
Failing to do so could result in your assets being distributed in a manner that does not align with your current wishes.
2. Ensure Accurate Designations
Beneficiary designations are a critical part of your estate plan. If you’ve experienced a life event that affects your beneficiaries, such as the birth of a new grandchild or the death of a beneficiary, your will should be updated to ensure that your assets are distributed according to your revised wishes.
When To Update Your Will
Several significant changes can occur in your life that necessitate you updating your will.
Consider updating your will in the following situations:
Marriage or Divorce
One of the most obvious times you’ll want to change your will is if you gain or lose a spouse. You’ll need to redistribute assets to other beneficiaries and adjust your estate plan to reflect changes in the family dynamics. When you get married, you’ll want to incorporate your new spouse into your will to make them a primary beneficiary, along with many other new legal and financial responsibilities.
After a divorce, you should promptly update your will to remove your ex-spouse as a beneficiary or executor to prevent them from receiving assets or having authority over your estate contrary to your wishes.
Birth or Adoption
When a child is born or adopted, you must update your will to include them as a beneficiary to ensure that they are part of your estate plan. When you update your will with this information, you should specify how your assets will be divided among your children, provisions for their care or education, and designate a guardian for your child in the event of your untimely death.
For adopted children, confirm that all legal rights are reflected in your will to ensure they are treated equally as biological children.
Death of a Beneficiary or Executor
If a beneficiary or executor in your current will passes away, it’s crucial to revise your will to appoint new individuals in their place. For beneficiaries, you’ll need to designate a new person to inherit or redistribute the assets among the remaining beneficiaries. In the case of the death of an executor, select a reliable and capable new person to manage your estate, ensuring that your will is executed according to your wishes.
Significant Financial Changes
Major financial shifts, such as acquiring new assets or incurring significant liabilities, require updates to your will. When you gain new assets, include them in your estate plan to distribute them as you intend. If you take on new debts, update your will to reflect how these liabilities will be handled, ensuring they don’t unduly impact your beneficiaries’ inheritance.
Relocation
Moving to a new state necessitates a review of your will to ensure it complies with local laws, as estate laws vary by state. This includes understanding differences in probate laws, tax implications, and other regulations.
The Steps to Update Your Will
Modifying a will is straightforward, but mistakes can result in complicated probate prices and considerable confusion for those involved. To avoid potential legal issues, it’s wise to consult a lawyer and follow these fundaments steps:
Review Your Existing Will
Carefully review your current will to identify any sections that need updating. Pay attention to changes in your life circumstances, such as marriage, divorce, the birth of a child, or significant financial shifts.
Consult an Estate Planning Attorney
Work with a detail-oriented estate planning attorney to ensure your updates are legally sound. They will help you accurately reflect your current wishes and ensure compliance with state laws.
Draft an Amendment or New Will
If the changes to your will are minor, you may only need to draft an amendment to your existing will. However, creating an entirely new will might be necessary after making significant revisions to avoid any confusion.
Sign and Witness the Changes
Ensure that your updated will or amendment is properly signed and witnessed in accordance with state law. This step is crucial to the validity of your will.
Distribute Updated Copies
After finalizing the changes, distribute updated copies of your will to your executor, beneficiaries, and any other relevant parties to ensure everyone knows your latest wishes.
Avoid Common Mistakes When Changing a Will
Updating your will is essential, but it’s equally important to avoid common pitfalls:
Don’t Wait Too Long
Life events can be overwhelming, but it’s essential to promptly update your will to avoid unintended consequences. Delaying this process can lead to complications in the distribution of your assets.
Avoid DIY Solutions
While online templates are available, they often need more personalization and legal accuracy for a sound estate plan. Working with a professional ensures that your will is legally valid and thoroughly tailored to your specific needs.
Keep Records Updated
Make sure that all copies of your will are updated and distributed to the relevant parties. Keeping records current helps ensure that your wishes are followed without confusion.
Protect Your Legacy – We Can Help
At Legacy Counsel Trust & Estate Law Office, we understand the importance of keeping your will current. Our compassionate and efficient team can guide you through updating your will and ensure your estate plan accurately reflects your wishes. Whether you’ve experienced a significant life event or want to reassess your estate plan, we’re here to help.
Schedule a 15-minute Estate Planning Phone Consult with our office to learn more.
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