It is very easy to prepare and complete your Will, put it in a cabinet and forget all about it. Most people either do not review their Will or leave reviewing their Will until it becomes urgent to do so. Leaving things until the last minute can cause significant issues. The biggest reason for changing your Will is that the document no longer represents your wishes, and it is therefore important that your Will is reviewed periodically throughout your life. The following information is designed to provide examples of life events that may lead to the need to review your Will:
Your children are now grown up
When writing your Will, you probably gave considerable thought on who should be appointed as guardians for your children, if you were to pass away while they were under the age of eighteen. In addition, you would have appointed executors that would have been best placed to care for your children’s inheritance until they reached maturity.
As your children are now grown up, the provisions relating to guardians are no longer relevant. You may also find that you would prefer your now grown-up children to act as executors of your Will, instead of the executors previously appointed.
You have had a child/more children or grandchildren since you made your Will
In your current Will you might not have appointed guardians for any of your children, if you have only recently had your first child. Your Will is the only place you can legally appoint guardians to care for your minor children if you die.
In addition, you might not have made provision for a future children and/or grandchildren that you now have. If this was the case, those children/grandchildren may not benefit from your estate.
You have concerns regarding an executor, trustee or guardian
You may have made your Will several years ago and at the time were happy with the appointment of the executors, trustees and guardians of your estate. Since the completion of your Will, your relationships with those appointed may have changed, and you may now wish to amend the appointment(s). You should always be able to trust the persons appointed to the various roles in your Will.
Since writing your Will you have married/re-married
Marriage generally revokes a Will unless you have specifically stated in your Will that your Will is not to be revoked by your impending marriage. This is still the case even if you marry a person that you have left your estate to in your Will. A Will is revoked on marriage as the Law infers that you would want to leave all/most of your assets to your new spouse and therefore if you did not complete a new Will. After your marriage, if you do not have a valid Will in place, you will die intestate, and your estate will pass in accordance with a strict set of rules. This could mean that assets pass to unintended beneficiaries.
You have separated or divorced since you made your Will
Separation does not automatically revoke a Will; therefore you may wish to reevaluate who you leave your assets to on your death in the event of a separation. Where you are married and you separate your spouse could still be entitled to your estate; be that under the terms of a Will under which you benefit them, or (without a Will) under the rules of intestacy.
Divorce is, however, an automatic provision and once your divorce has been concluded, your ex-spouse is treated as though they have died before you and will therefore not inherit under your Will. Even with this automatic provision, you may still need to review your Will to ensure that you have appropriate executors, guardians for minor children and to consider who will now benefit from your estate.
One or more of your beneficiaries has died
Unfortunately, death is part of life, and it is always important to review your Will if one or more of your beneficiaries has died. This is because you may not have provided for a situation where your intended beneficiary dies before you and you may find that the failed gift now passes in accordance with the strict rules of intestacy, perhaps to individuals you have never even met, or, in some cases, people that you would not want to inherit your estate.
You gain or lose significant assets
Gaining or losing significant assets during your lifetime often affects how you might wish to distribute your assets.
For example, if your Will stipulates various cash gifts to beneficiaries, with the remainder of your estate to another beneficiary (the residuary beneficiary), losing significant assets during your lifetime could result in your residuary beneficiary not inheriting anything at all from your estate, as the cash gifts would take precedence in order of payment.
On the other hand, if you gain significant assets, perhaps due to inheritance or winning the lottery, this may change the status of your estate in terms of Inheritance Tax liability, and you may wish to obtain Tax planning advice and subsequently update your Will.
You have moved abroad
It is always important to review your Will if you have moved abroad. This is because your UK Will may no longer be valid, and you may need to create a Will in your new jurisdiction. This is not always the case and therefore advice is likely to be needed.
It is always important to note that even if you have not moved abroad, but you have acquired assets in a foreign jurisdiction, your Will may need reviewing.
Changing Laws
Laws, particularly those in relation to Tax, change all the time. In light of the recent budget, there are various proposed changes to agricultural property relief, business property relief and the way in which pensions will be taxed when you die. All of these proposed changes are due to take effect in the coming months.
Even if none of the aforementioned changes are relevant to you, it is best practice to review your Will every three to five years to ensure that it still aligns with your current wishes.
When reviewing your Will, it is also important to review the Deeds to your property, to ascertain how you hold the property if you are a joint owner and if the property is registered at the Land Registry. In addition, it is important to consider whether any old Wills and/or copies need to be destroyed.
If you think now might be the time to review your Will, please contact Rachel Smith and she will endeavour to assist you. Find out more about the team and our services on our website.
This is only intended to be a summary and not specific legal advice.
