5 Life Changes That Should Prompt You to Update Your Will

Most of us think of making a will as a one-time task: you sit down, make a few important decisions, sign the documents, and check “will” off the list.

But life rarely stays the same for very long. Relationships change. Families grow. Businesses are bought and sold. Assets come and go. And sometimes, the people you originally chose to handle your estate or inherit from you are no longer the right people for the job.

That is why creating a will is only part of the process. Reviewing and updating your will as your circumstances change is just as important.

If you have a will in place, here are five life changes that should prompt you to take another look at your estate plan.

1. You Get Married, Separated, or Divorced

Few life changes have a bigger impact on your estate plan than a change in your relationship status.

Getting married may mean you want your spouse to inherit some or all of your estate. You may also want to revisit who you have named as your executor, attorney under a power of attorney, or beneficiary of your accounts and insurance policies.

On the other hand, separation or divorce is an important reason to review your will as soon as possible. In British Columbia, the legal effect of a separation or divorce on an existing will can depend on the circumstances and the timing. More importantly, even where the law changes the effect of certain provisions, it is generally not a good idea to leave your estate plan to chance.

If your former spouse is still named in your will, you may also have named them as a beneficiary on other documents, such as a life insurance policy, registered account, or pension. Those designations do not necessarily change simply because your relationship has ended.

2. You Have a Child or Your Family Grows

Having a child can completely change the way you think about your estate.

Before children, your will may have focused primarily on your spouse, partner, parents, siblings or other loved ones. Once you have children, you may want to make sure your estate plan provides for them if something happens to you.

A will can address important questions such as:

• Who should inherit your estate?
• At what age should your children receive their inheritance?
• Who should manage money left for a child who is still a minor?
• Who would you want to act as guardian of your minor children?
• What happens if both parents die?
• Who will manage the RESP for the children?
• Should a trust be established for a child who is young, financially inexperienced or otherwise unable to manage a significant inheritance?

Your estate plan may also need to change as your children get older. A plan that makes sense when your children are toddlers may look very different once they are adults.

And if your family circumstances change through adoption, blended families, stepchildren or other relationships, it is particularly important to make sure your will reflects your intentions clearly.

3. You Buy or Sell Significant Assets

Your will does not need to list every possession you own. In fact, most wills are drafted to deal with your estate generally rather than itemizing every asset.

But a major change in what you own can still be a reason to review your will.

For example, perhaps you have:

• Purchased a home;
• Acquired a vacation property;
• Started or purchased a business;
• Received a significant inheritance;
• Built a substantial investment portfolio;
• Acquired assets outside British Columbia or Canada; or
• Sold a major asset that was previously central to your estate plan.

These changes can affect how your estate should be structured and how your assets should ultimately be distributed.

For business owners in particular, estate planning can involve additional considerations. Shares in a privately held company can represent a significant portion of someone’s wealth, and the way those shares are dealt with after death can have legal, tax and practical consequences.

A significant change in your assets may therefore be a reason not only to update your will, but to review your overall estate plan with your lawyer and other professional advisors.

4. Your Executor or Beneficiaries Have Changed

When you make a will, you choose people you trust to carry out your wishes. But what happens if those people are no longer the right choices?

Your executor may have moved away, become ill, passed away, or simply no longer be someone you would choose to take on the responsibility. You may also have named a beneficiary who is no longer part of your life.

Or perhaps your relationships have changed in a more positive way: a close friend has become like family, a new grandchild has entered the picture, or you want to provide differently for one of your children.

These are all reasons to revisit your will.

Your executor has an important job. They may be responsible for locating and gathering your assets, dealing with debts and taxes, communicating with beneficiaries, handling probate where necessary, and distributing your estate according to your will.

Choosing someone simply because they were the obvious choice five or ten years ago may not make sense today.

5. Your Family or Financial Circumstances Become More Complicated

Sometimes there is no single dramatic life event that triggers the need to update a will. Instead, your circumstances simply become more complicated over time.

You may have entered into a blended family. One of your children may have special financial considerations. You may have a dependent family member. You may have started a business with a partner. Or you may have accumulated assets in multiple jurisdictions.

These situations can make a straightforward “everything to my spouse, then equally to my children” estate plan less straightforward.

There can also be tax and legal considerations that you did not need to think about when your will was originally prepared.

This is where a regular estate planning review can be particularly valuable. Your lawyer can look at your will in the context of your current circumstances and identify whether your existing plan still accomplishes what you want it to accomplish.

How Often Should You Review Your Will?

There is no magic expiry date for a will. You do not necessarily need to rewrite it every year.

A good rule of thumb is to review your will every few years and whenever there is a significant change in your life, family or finances.

Even if nothing has changed, a periodic review can be worthwhile to make sure the document still reflects your wishes and that the people you’ve chosen to act on your behalf are still appropriate.

And remember: your will is only one part of your estate plan.

Depending on your circumstances, you may also want to review your powers of attorney, representation agreement, beneficiary designations, business succession plans and other documents that form part of your broader estate planning strategy.

Is It Time to Update Your Will?

If you cannot remember the last time you reviewed your will, that may be a good enough reason to pull it out and take another look.

Ask yourself:

Has my family changed?
Have my relationships changed?
Have my assets changed?
Have the people I’ve chosen to handle my estate changed?
Would I make the same decisions today?

If the answer to any of these questions is no, it may be time to update your will.

At GBC Law, we help individuals and families in British Columbia create and maintain estate plans that reflect their current circumstances and wishes. Whether you need a new will or simply want to review an existing one, a conversation with a lawyer can help identify what needs to change, and what does not.