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Times Change: Top Five Reasons to Update Your Will
by Michelle Kaminsky
First of all, since you have a will: congratulations! You've successfully separated yourself from the majority of Americans. According to some estimates, 74% of parents with minor children lack a will. Many of us have yet to even write down how we want our estates distributed to heirs.
Ah, you've planned cross "plan future" off the list, right? Sorry, not so fast.
Since your will is a living document, it needs more attention than just the initial once-over-no matter how thoroughly it was prepared. Just like your life and circumstances change, your will should reflect the changes.
The following is a list of the top reasons to update your last will and testament, or at least give it another look:
- People Change
Your relationships with people named in your will may have changed over the years. Maybe you don't want to leave your favorite jewelry to your former best friend anymore. Additionally, you may have changed-perhaps you have begun a new relationship with a charity or other group which you wish to endow after your death.
Your relationships with people named in your will may have changed over the years. Maybe you don't want to leave your favorite jewelry to your former best friend anymore. Additionally, you may have changed-perhaps you have begun a new relationship with a charity or other group which you wish to endow after your death.
If you have had a child since your will was first drafted, it's recommended that you review the document and name a guardian or guardians in the event of the deaths of both you and the child's other parent. Additionally, if your children have reached the age of majority since you drafted your will, consider revising certain bequests, or naming them as executors.
Finally, consider the people named in your will, be they heirs, representatives, guardians, trustees, or executors. Have they passed away? Consider whether the circumstances of these people have changed and whether or not you wish to include them in your will in the same way. Are those named still of sound mind and capable of serving as you have provided?
- Assets Change
If your estate has experienced a substantial increase or decrease in value since the execution of your will, it is essential to take another look. Perhaps you have acquired or disposed of a major asset or maybe started a business.
Also, consider whether you have new insurance policies or pension plans for which you can name beneficiaries in your will.
- Places Change
Moved out of the state in which you executed your will? Consult an attorney in your new location to determine whether your last will and testament is still valid. State laws regarding the execution of wills vary, don't assume that your old will meets your new state's laws.
- Laws Change
Tax laws are constantly changing on both state and federal levels. Become aware of any changes that may affect your estate plan. Consulting an attorney who specializes in wills and estate planning is your best bet, but you can also inform yourself as well.
- Time Changes All
If you have not updated your will for three years or more, it is to review it. Simply looking at a checklist, like the one provided below, may remind you of something you wished to include or change. Return to your original will, review it, and make certain that it's been updated according to your changing needs.
An even wiser practice is to plan on a yearly will review. April 15th is a good reminder date (think death and taxes). Since it's a day to take stock of the financial year, tax time is a good period to reconsider your plans and put your affairs in order.
One note on time - be aware what age requires you to begin taking distributions from your IRA, 401(k), or other qualified plan (usually 70 ½ years old). Right before you reach this magic number, give your will a through review.
Below is a checklist of common occurrences that should spark another glance at the document that will speak for you. If you check just one of these, it's time to dig out your will and have a look-see:
- Birth or adoption of a child/grandchild
- Marriage/divorce
- Death of someone named in the will
- Children reached the age of eighteen
- A change in the circumstances of your executor, guardians, trustees
- You would like to provide for a charitable or other organization
- Significant increase or decrease in your estate's value
- Starting a business
- Change in tax laws
- Approaching the age at which you are required
to begin taking distributions from your IRA, 401(k),
or other qualified plan (usually 70 ½ years old)
- Moved out of state
- Three or more years have passed since you last reviewed your will
Keep in mind that a will could be the most important legal document that you'll ever sign. Think of it as a way to protect your most precious assets. Without one, the courts-and not you-decide what happens to your assets and even your children. The good news is you don't need an attorney or a lot of time to prepare a customized, high-quality will. LegalZoom makes it fast, easy and affordable to prepare a comprehensive will, complete with advanced provisions.
Remember, you're already ahead of the game by having expressed your intentions in your will. Allow the document to evolve with your life and its changing circumstances-this is the only way to be sure that your wishes are followed when you depart.
LegalZoom is not a lawfirm and can only provide self-help services at your specific direction. Information contained above is subject to change and is not applicable to every state. Visit LegalZoom.com for specific state-by state-documents.
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