12 Reasons to Review your Will
Birth of a child or grandchild
If you your will is written prior to the birth of the child, then the child will not automatically become a beneficiary. If you would like the child to become a beneficiary it will be essential to update your will as soon as possible after their birth. This will also be required for the adoption of a child or the acquisition of a stepchild.
Death of a beneficiary
It is possible to have a will written with instructions of what you would like to happen if a beneficiary were to predecease you, known as a ‘survivorship clause’. However, it is worth reviewing as you may feel differently and wish to name a different beneficiary.
Death of an Executor or Guardian / or unsuitability to act due to age, health or bankruptcy
If you made a will sometime ago and appointed executor/guardians for children, things may have changed. For example, they may have moved far away do you may wish to appoint an executor/guardian whom lives closer than you. To ensure that your estate is handled according to your wishes you should consider reviewing your will in accordance with the health of the executor or guardian.
Divorce or Separation
Changing your will is unlikely to be top of your list of things to do if you are going through a divorce/separation, yet it is important that you do so. Failure to do so can mean that your ex-partner inherits your entire estate; even if you have another family member or friend that you would have preferred to become a beneficiary.
Marriage, re-marriage or entry into a civil partnership
When entering into a marriage or civil partnership the will already in place will be revoked (cancelled), unless the will has been written in contemplation of marriage. This may cause problems if you have another person whom you prefer to benefit from your estate. For example, if you have children from a previous relationship you may prefer that they remain the primary beneficiary of your estate rather than your new spouse/partner.
Starting a business or entering a partnership
It is important to address what will happen to the business/partnership when you die. Factors to consider are – will the business continue? Who will run it? How can your dependents receive the value of your share of the business? It is important to discuss this with a financial adviser and solicitor to ensure that you have the right plan in place to allow the business to continue and for your dependents to receive your financial share.
Purchase of foreign property or moving abroad to live and/or work
Inheritance laws vary in every country and your will in the UK may not have the legal jurisdiction to cover your foreign property. Therefore, when purchasing a property abroad make sure to investigate the local laws, as you may need to have a local will drawn up. It is also worth checking the impact this will have on your inheritance tax liability.
Inheritance of property, cash or investments
An inheritance of property, cash or investments means an increase in the value of your estate. As a result, it is worth reviewing your will so your newfound wealth is distributed according to your wishes. You may wish to leave parts of your estate to people previously not featured in your will or to a charity. Another thing to consider here is the implication on inheritance tax, it is advisable to speak with a financial adviser about your options, for example putting money into a trust.
Change of address or change of name
To ensure legal validity you should update your will when you move to a new residence and/or change your name.
Sale of property specifically gifted in will
You may wish to review your will if you dispose of an item which you have listed in the will.
Children attaining 18,21 or 25 years when a Trust Fund may no longer be applicable and indeed children are old enough to act as Testators/Executors
Many people choose to place their estate in trust for their children/grandchildren until they reach an age which they are deemed by the benefactor to be responsible, traditionally 18,21 or 25 years of age. Once the children/grandchildren have reached this age then you may wish to amend the way in which you elected for them to receive their inheritance in your will.
Changes in rates of tax, usually contained in the annual budget
There may be changes in the annual budget which can affect the way in which your estate is taxed after your death. For example, in April 2017 the new residence Nil Rate Band was introduced, in order for people to benefit from this tax break they may need to update their will.
Reviewing your will is a vital aspect of financial planning and it can be helpful to consult a financial adviser to discuss efficient tax planning of your estate.
For independent financial advice regarding estate planning, please do not hesitate to contact the team at KDW.
01727 85 22 99 | mail@kdw.co.uk