It’s a Good Idea to Update Your Will Annually
A will could potentially be the most important document you every write. It is not something that can be drafted and forgotten about. A will needs to be reviewed annually and you should update your will in response to major life changes. A good time to do this is around New Year’s. For many, it’s an annual tradition of reflection about the people and relationships in their life. Some of these relationships may have changed over the course of the year. These changes could have a significant impact on the current state of your will.
Four Reasons to Update Your Will
1. Your Relationships Have Changed
Families change all the time. Children age into adults. People get married and have children of their own. Your relationship with each of these people can also change with these family developments. As a result, you may decide to update your will to reflect new beneficiaries.
Other relationships that change could be the ones you develop with non-profit organizations. An update to your will might reflect a sum of money, or donations, you would like to give to them. Another relationship that could change is with your will’s Executor. They may have died or you could have had a falling out with them. Other reasons to update your will as a result of relationship changes can be:
- Changing your children’s guardianship in the result of your death
- A child turning eighteen
- Death of a family member
2. A Substantial Change in Your Assets
A will is the distribution of your money and assets to those you choose in the amount you decide. Large changes in assets, whether they are positive or negative, will change the distribution amounts of your will. During these times of acquisition of disposition, you should remember to update your will accordingly. Large changes in your assets to consider when updating your will include:
- Change in the overall value
- Acquisition or sale of a significant asset
3. A Change in Your Health
You may have a directive that outlines what steps should be taken for your healthcare in the event you can’t speak for yourself. Your health and how you would like to be cared for can change. Advancements in technology can have a significant impact on your longevity and comfort. You will need to reflect how you want to be cared for as you age.
4. Changes in State and Federal Laws
Federal tax laws change with almost every new president. The amount your beneficiaries pay in taxes will change with these new laws. Taking the time to consult with your financial expert over new tax laws is the best way to ensure your beneficiaries don’t pay more than they need to.
Other laws that differ are the laws between states. If you move to another state, you need to make sure you update your will. A will can be executed in the state you drafted it in and not the one in which you reside if you haven’t made these changes. You should also make sure you have the required number of witnesses for your will as mandated by each state.
LeAnn Schumann is an Efficient and Experienced Will and Estate Planning Lawyer
Taking the time to update your will accordingly will avoid future complications for your heirs. An incorrect address on a home which you want to leave for your child could leave them tied up in court for years. They may end up spending their entire inheritance just to resolve a discrepancy on your will. LeAnn Schumann has the expertise to ensure your will outlines your assets accurately and distributes them to who you choose in the amount you decide. She is available to serve the people of Reno, Sparks, Carson City, Fallon, Fernley, Dayton, Yerington, Douglas County, and all other Northern NV rural counties.