Top 3 Reasons to Update Your Will
I want to talk about the importance of updating your will and the top three reasons why it's crucial to review and revise this essential legal document. Your will outlines how your assets will be distributed after your passing, and keeping it up to date is essential to ensure your wishes are accurately reflected. Let's dive into the key reasons for updating your will:
Reason #1: Change in Relationship Status
One of the primary reasons to update your will is a significant change in your relationship status. Whether you get married, separated, divorced, enter into a de facto relationship, or experience the loss of a spouse or de facto partner, these life events can have a profound impact on your will. Changes in circumstances may even result in the revocation of your existing will, highlighting the importance of having a valid and updated will in place. Additionally, your desired distribution of assets may need to be adjusted to reflect your new relationship status accurately.
Reason #2: Parenthood and Guardianship
When you become a parent, it becomes crucial to account for the legal guardianship of your children in your will. In the unfortunate event that both parents pass away, the will should clearly specify who will assume guardianship of the children. It is essential to regularly review and revise your choice of legal guardians as your children grow older and family dynamics evolve. What may have been suitable for your infants may no longer be appropriate for teenagers. Taking the time to review and update this aspect of your will ensures that your children are protected and cared for by trusted individuals.
Reason #3: Significant Asset Position Changes
Changes in your asset position can greatly impact the effectiveness of your will. Whether your estate has grown substantially or you've experienced a significant decrease in your assets, it's crucial to reassess how your estate is being distributed. If your liabilities outweigh your assets during a particular period, it's possible that your current will may not be able to carry out your intended wishes. Additionally, if you have specifically gifted an item, such as a specific vehicle, it's important to consider whether changes in your assets affect the feasibility of fulfilling those specific gifts.
As a general guideline, I recommend reviewing your will annually and considering updates every three to five years, depending on the changes discussed above. By doing so, you can ensure that your will remains relevant and aligned with your current circumstances and desires.
If you're ready to update your will or would like to discuss estate planning strategies, I invite you to visit my website at viccalaw.com.au to book a free consultation with me to address your specific needs and concerns. Alternatively, feel free to contact me directly at 0414 193 373 at any time.
Remember, keeping your will up to date is essential to protect your assets, ensure your loved ones are cared for, and have your wishes carried out according to your current circumstances. Don't delay in securing your future and peace of mind through proper estate planning.