Why It’s Important to Update Your Will

Life is full of joyous milestones, and also unexpected turns. Our circumstances evolve, and so should our plans. While one of the most important aspects of planning for the future is having a simple will in place, regular reviews with updates are crucial when things are changing!

Many of us create a will during a significant life stage, perhaps when starting a family or buying a home. However, it’s easy to file it away and forget about it. Over time, changes in your personal life, finances, or even changes in the law have an effect on what you have in your will. This is where the IAM Legal and Personal Protection Plan’s benefit of assistance with drafting and yearly updates of your simple will becomes essential.

Why Update Your Will?

• Changes in Family Structure: Perhaps the most common reason to update your will is changes in your family. Marriage, divorce, the birth or adoption of children or grandchildren, and the death of a beneficiary are all significant life events that warrant a review.
  • If you’ve married or divorced, your will needs to reflect your current marital status and ensure your assets are distributed according to your wishes. The arrival of new family members means adding or adjusting beneficiaries. Similarly, if a beneficiary has passed away, you’ll need to update your will to avoid complications.
• Acquisition or Disposal of Assets: Your financial situation is likely to rise and fall over time. Buying a lot of assets, such as purchasing a new home or investment property, or the disposal of assets, like selling a business, requires adjustments to your will. Your will should accurately reflect your current assets and how you want them distributed after you’re gone.
• Changes in Beneficiary Circumstances: Sometimes, the circumstances of your beneficiaries may change. For example, a beneficiary may develop a disability or experience financial hardship. You may want to create a trust or make other plans to ensure their well-being.
• Changes in Guardianship: If you have minor children, your will should name a guardian. As your children grow, or if the circumstances of your chosen guardian change, you may need to reconsider your selection.
• Relocation: Moving to a new state can have legal effects on your will. State laws regarding inheritance and court processes vary, so it’s essential to ensure your will complies with the laws of your current state of residence.
• Changes in Your Wishes: Over time, your values and priorities may evolve. You might decide to leave a portion of your estate to a charitable organization or make other changes to your distribution plan. Your will should reflect your current wishes.
• Changes in the Law: Tax laws and estate laws are subject to change. Regular reviews ensure your will remains compliant and minimizes potential tax liabilities.

When Should You Update Your Will?

• Major Life Events: As mentioned earlier, significant life events like marriage, divorce, birth, adoption, or death should prompt a review of your will.
• Annual Review: Even if no major life events have occurred, it’s a good practice to review your will annually. This ensures it remains accurate and reflects your current wishes.
• Changes in Financial Situation: Significant changes in your financial situation, such as a substantial increase or decrease in assets, should trigger a review.
• Changes in Health: If you experience a significant health change, it’s a good time to review your will and ensure your wishes are clearly documented.

How the IAM Legal and Personal Protection Plan Can Help

Updating your will doesn’t have to be an overwhelming task. The IAM Legal and Personal Protection Plan provides valuable assistance with drafting and yearly updates of your simple will.

By taking advantage of your IAM legal benefits, you can ensure your wishes are honored and your loved ones are protected.

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