If you have a Will, congratulations – you’re among the 32% of Americans who have wisely taken the initiative to protect your assets and make sure they’re distributed according to your wishes. However, failing to update your Will after certain events can lead to confusion. Here are the top reasons your Will may need to be changed.
Your Family Status Changes
Life events like a divorce, a remarriage, or the birth of a new grandchild, are among the top reasons to revise your Will. If you remarry, you may want to add stepchildren and their families as beneficiaries. You may even need to choose a new executor because you probably don’t want an ex-spouse to make decisions about your estate.
Your Executor Passes Away
As the saying goes, “Life happens when you’re making other plans.” The death of your named executor requires an update to your Will, ASAP. Or, perhaps they’re dealing with a chronic health issue that makes them unable to take on the responsibilities of an executor. Then again, the death of one of your beneficiaries is yet another reason to update your Will.
Your Assets Change
From vacation homes to a range of recreational vehicles, you may acquire additional assets during your retirement that aren’t included in your Will. As a result, you may need to reallocate how these added assets are distributed among your beneficiaries.
“Also known as an amendment, a codicil can be used to make changes like adding or removing a beneficiary without rewriting the entire document.”
You’ve Simply Changed Your Mind
Though it may sound like a movie plot it’s not beyond the realm of possibility that you may want to remove a beneficiary from your Will. This type of change can be made by adding a codicil to the Will. Also known as an amendment, a codicil can be used to make changes like adding or removing a beneficiary without rewriting the entire document. However, it still requires witnesses and notarization just as required by the original Will.
You Haven’t Reviewed Your Will Since It Was Drawn
Since a Will is a major component of your estate plan, experts advise updating it every five years. It’s also important to review and update estate documents like your Durable Power of Attorney and Advance Healthcare Directives in the event you’re incapacitated and unable to make your own decisions.
Also, Update Beneficiary Designations On Your Accounts
Since beneficiary designations always override a Last Will & Testament, it’s crucial to update beneficiaries on your retirement accounts, your Thrift Savings Plan (TSP), life insurance policies, and checking and savings accounts.
To learn more, connect with an FRC® trained advisor.
