Published: December 9, 2024

Keep Your Legacy Intact by Regularly Reviewing Your Will

Your will is more than just a document—it’s a reflection of your values, priorities, and the legacy you want to leave behind. Yet, as life evolves, so do the circumstances that can impact your plans, making it crucial to revisit this cornerstone of your financial strategy. In this article, we’ll explore why regularly reviewing your will isn’t just a wise move, but an essential step in safeguarding the future you’ve worked so hard to build.
Overhead view of hands highlighting financial documents on a desk.

Why Your Will Needs Regular Updates

Life is full of changes—some planned, others unexpected. As your circumstances shift, so too should the provisions in your will. A will that reflected your priorities five years ago may no longer align with your current situation. For example, perhaps you’ve welcomed a new addition to your family, or maybe a significant financial asset like property or investments has entered your portfolio. These milestones should prompt an immediate review of your will.

Another reason to revisit your will is the inevitable change in relationships over time. **Marriages**, **divorces**, or the passing of loved ones can dramatically alter your intended legacy. Failing to update your will in light of these events could lead to unintended consequences, such as assets being allocated to someone you no longer wish to include. It's an emotional and financial risk most people can’t afford to take.

Even if your relationships and assets have remained stable, external factors like **tax laws** and **estate regulations** frequently change. A provision that once minimized tax liabilities, for instance, might no longer be valid under new legislation. Staying informed about these changes and adjusting your will accordingly ensures that your estate plan remains efficient and aligned with your goals. For more guidance on managing tax implications, explore Retirement Tax Hacks to Keep More of Your Nest Egg.

Key Life Events That Should Trigger a Review

Certain life events demand immediate attention when it comes to your will:

  • **The birth or adoption of a child**: Ensure your new family member is included, whether through direct inheritance or by appointing a guardian.
  • **Marriage or divorce**: A new spouse may naturally be a beneficiary, but if you’ve recently divorced, failing to update your will could result in your ex-spouse inheriting assets. If you're navigating blended family dynamics, check out Crafting a Clear Path to Your Home Ownership Goals for tips on aligning your financial priorities.
  • **Career advancements or changes**: A significant salary increase or acquiring new assets like stock options or a business should prompt a review. Conversely, financial setbacks like bankruptcy require reassessment to manage debts.

How Often Should You Review Your Will?

While there’s no universal rule, most experts recommend revisiting your will every **three to five years**. This timeframe accounts for gradual changes in your personal and financial life without overwhelming you with constant updates. However, certain triggers demand an immediate review:

  1. Major life events like a marriage, divorce, or the birth of a child.
  2. Significant changes in your financial situation, such as acquiring or selling property.
  3. Changes in tax laws or estate regulations.

By reviewing your will regularly, you can avoid potential legal pitfalls and ensure your wishes are carried out as intended. For more tips on improving your financial security, check out Build Financial Security Quickly: Strategies to Save for an Emergency Fund.

Common Mistakes to Avoid

Here are some **common pitfalls** to steer clear of when managing your will:

  • **Assuming your will is a one-and-done task**: Life events like selling a property listed in your will can create confusion or disputes if not updated.
  • **Using vague language**: Avoid ambiguous phrases like "divide equally among my children," especially in blended families. Be specific to prevent future conflicts.
  • **Failing to update the executor**: If your current executor is no longer the best fit due to age, health, or other factors, appoint someone else to ensure your wishes are effectively carried out. For insights on choosing reliable financial tools, see Top-Rated Tools to Take Control of Your Personal Finances.

Practical Steps for Reviewing Your Will

Follow these steps to ensure your will remains up to date:

  1. **Gather all relevant documents**, including your current will, asset statements, and legal or financial records.
  2. **Take inventory of your assets and liabilities**. This is crucial if you’ve acquired or liquidated significant assets since your last review.
  3. **Evaluate the people named in your will**: Are your beneficiaries and executor still appropriate? Update as needed.
  4. **Consult a qualified professional**, such as an estate planning attorney or financial advisor, to ensure your will aligns with current laws and best practices.

For more tips on safeguarding your assets and planning your legacy, explore Secure Your Legacy with a Thoughtful Estate Plan Tailored for Retirement.

FAQs

How often should I update my will?
Most experts recommend reviewing your will every three to five years or immediately after significant life events like marriage, divorce, or the birth of a child.
What happens if I don’t update my will?
Failing to update your will can lead to outdated provisions, unintended beneficiaries, and potential legal disputes among heirs.
Can I update my will without a lawyer?
While it's possible, consulting an estate planning attorney ensures your updates comply with current laws and best practices.
What should I consider when choosing an executor?
Select someone trustworthy, organized, and capable of handling the responsibilities. If your current executor is no longer the best fit, appoint a new one.
Should I include digital assets in my will?
Yes, digital assets like online accounts, cryptocurrencies, and intellectual property should be included to ensure they are managed according to your wishes.

1Why You Should Update Your Will published on January 15, 2023, from Forbes

2Estate Planning Essentials from NerdWallet

3Understanding Probate and Wills published on March 10, 2022, from Investopedia

James Lee
By James Lee

James Lee is a financial advisor with a knack for simplifying personal finance for everyone. He believes in financial independence and strives to help others achieve it through smart planning and informed choices. His articles are both informative and inspiring.