If you have a will, congratulations—you've taken an essential step in protecting your loved ones and ensuring your wishes are honored. But here’s a hard truth: an outdated will can be just as bad as having no will at all. Life changes, laws change, and if you don’t update your estate plan accordingly, you could be setting your family up for unnecessary legal battles, taxes, and heartache.
Here are the top seven reasons why you should update your will right now.
1. You’ve Moved to a New State
Each state has its own estate planning laws, and what worked in your previous state may not work in your new one. For example:
- Some states have different requirements for how a will must be signed and witnessed.
- State laws vary on spousal inheritance rights and tax implications.
- Your old state's probate laws may differ significantly from your new state, potentially causing delays or additional expenses for your heirs.
Solution: If you've moved to a new state, you need to review and update your estate plan to ensure it complies with local laws. As an attorney licensed in both Minnesota and Florida, I frequently help clients transitioning between these states to ensure their estate plan remains valid and effective.
2. You Want to Avoid Probate (Spoiler Alert: Your Will Doesn’t Do That)
Many people mistakenly believe that having a will means their estate will avoid probate. That’s not true. A will is simply a set of instructions to the probate court, which means:
- Your assets will still go through the time-consuming and expensive probate process.
- Probate is public record, meaning anyone can see what you owned and who inherited what.
- Your family could be tied up in court for months or even years before they can access your assets.
Solution: If you truly want to avoid probate, you should consider a revocable living trust. Unlike a will, a trust allows your assets to transfer privately and without court involvement, making things easier, faster, and more cost-effective for your loved ones.
3. Major Life Changes (Marriage, Divorce, Birth of a Child, or Death of a Beneficiary)
Significant life events should trigger an immediate review of your will. Examples include:
- Marriage or Divorce: If you’ve married or divorced since creating your will, your current plan may not reflect your wishes.
- New Child or Grandchild: If you’ve had children or grandchildren, you may want to update your beneficiaries or establish a trust for their inheritance.
- Death of a Beneficiary: If someone named in your will has passed away, failing to update your plan could create confusion or unintended consequences.
Solution: After any major life event, it’s critical to revise your estate plan to ensure your assets are distributed exactly as you intend.
4. You Have Acquired New Assets
Bought a new home? Started a business? Invested in stocks? If you’ve accumulated significant assets since your last will update, you should revise your plan to:
- Ensure new assets are properly distributed to your intended heirs.
- Avoid unnecessary estate taxes or legal challenges.
- Protect your business by implementing succession planning.
Solution: An updated estate plan ensures that your growing wealth is protected and distributed according to your wishes.
5. You Want to Change Who Inherits Your Assets
Maybe you've had a falling out with someone previously named in your will, or you now want to leave assets to someone who wasn’t included before. Common reasons for changes include:
- A child or grandchild who has become more financially responsible.
- A charity you now want to support.
- Estranged family members whom you no longer wish to inherit from you.
Solution: Your estate plan should always reflect your current wishes, and the only way to ensure that is by updating your will regularly.
6. Your Chosen Executor is No Longer the Right Choice
The person you originally named as executor (the one who will handle your estate after your passing) may no longer be the best fit.
Reasons to reconsider include:
- They have moved away and may not be able to handle the duties efficiently.
- They have passed away or become incapacitated.
- Your children are now adults and better suited to handle the responsibility.
Example: Many years ago I had a young woman come into my office after her father passed away. He had prepared a will while his daughter and son were kids naming his sister, the young woman's aunt, as his executor. However, prior to his death, he'd had a significant falling out with his sister but never updated his will. Now, the young woman and her brother were both in their late 20's, married, working and quite capable of handling their father's affairs. However, their aunt refused to step aside and allow the young woman to manage her father's estate and was taking the full state-allowed compensation for doing so - as one last dig at her brother and his kids.
Solution: Naming a responsible, financially savvy executor is crucial to ensuring your estate is managed smoothly and according to your wishes.
7. Tax Laws Have Changed (or Will Soon Change)
Estate and tax laws change frequently, and failing to update your plan can result in unnecessary taxes and losses for your family. For example:
- Federal and state estate tax exemptions fluctuate.
- Changes in inheritance tax laws can impact how much your heirs receive.
- New strategies, like lifetime asset protection trusts, can help shield your wealth from taxes and creditors.
Solution: Regularly reviewing your estate plan with an experienced attorney ensures that you are taking advantage of current laws to protect your assets and minimize taxes.
Take Action Today to Protect Your Family and Your Legacy
If any of these seven reasons apply to you, now is the time to update your will and estate plan. Waiting too long could mean costly mistakes, family disputes, or unnecessary taxes. Call us today at either (763) 420-5087 for our Minnetonka, MN office or at (941) 909-4644 for our Florida office to schedule your consultation. Or, you can fill out the contact form on this page and a member of our team will reach out to you to schedule.
Or, if you are not yet ready to schedule a consultation but would like to discover more, join us in my upcoming masterclass where I will be revealing strategies I use with my private clients and their families to help them avoid probate, save on taxes, protect the money they leave for their kids in the event they get divorced and much more. Click here to sign up.
