Making a Will is something that we often put off, but once you’ve completed your Will you can relax and know that your last wishes are recorded. What if, however, your circumstances change? A Will is something should be kept under review and updated when necessary.
Why would I need to update my Will?
People update their Wills for all sorts of reasons; sometimes they’re needed even when it’s the furthest thing from your mind! Below are some common life events that could give you ample reason to update your Will.
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A Birth
A new addition to the family is a joyous time, and reminds us that life is full of possibilities. We might not ordinarily consider our Will at this time, but it is the ideal time for updating your Will, especially if this is your child. Should something happen to you and your spouse, it’s important to leave instructions regarding who you would like to become your children’s guardian. Depending on how the Will is drafted, this may not include future children or grandchildren and you may need to review your Will to ensure that everyone is noted or included in the terminology used.
A Marriage/Civil Partnership
You’ve just married/formed a civil partnership with the love of your life and a Will may not be the first thing you consider. However, marriages and civil partnerships happen at various stages in our life, and what if this is not your first? As soon as you marry/form a civil partnership, any previous Wills are automatically revoked (unless made in anticipation of the event). This means that, if you don’t prepare fresh Wills, your estate could be subject to the Intestacy Rules when you pass away.
Blended families are becoming more and more common and, without a carefully drafted Will that considers both sides of the family, you could run the risk of your children from a previous relationship not benefiting from your estate as this could be redirected to your new spouse’s family.
You should also consider reviewing your Will if you are divorcing. There are provisions in place which would deal with any mention of your ex-spouse in your Will, but the terms may need to be reviewed.
A Death
Life can be unpredictable, particularly during the Covid-19 pandemic. We have seen families suffer more heartache than we have known in recent times and we may not wish to consider our own demise in all of this trauma. What if you have lost someone who was due to benefit from your Will? Do you know what happens to their share of your estate? People often assume that this will pass over to that person’s partner or their children but this depends on the terms of the Will.
An unexpected windfall
Both happy and sad times can result in changes to your circumstances and the need to update your Will when considering our normal family lives.
You should also consider the size of your estate and whether this has changed over time. Most of us dream of winning the lottery one day, wouldn’t that make everything so much easier? While it may do in some ways, what if the windfall takes you over the Inheritance Tax thresholds and suddenly you are facing the complexities of Inheritance Tax? Anything in your estate above these thresholds is potentially taxed at 40%. Would you be happy for your newly increased estate to pay a large amount of money in Inheritance Tax? This is one of the only taxes that you can plan for and mitigate. By reviewing your Will, you could save potentially thousands of pounds in Inheritance Tax.
We would always recommend that you review the terms of your Will periodically to ensure that this still adheres to your wishes and that you don’t require any additional advice in relation to changes in circumstances or the law.
If you’re thinking of updating your Will, or are thinking of making a Will, our friendly and empathetic team can help you. Make an enquiry today or give us a call on 0151 282 1700 and we’ll be on hand to help you know where you stand.