Ensuring Your Will Adapts To Life’s Changes

October 6, 2023

Creating a will provides a semblance of control over the unknown and reassures us that our loved ones will be taken care of. If you executed your Wills in the 1990s, they would generally still hold validity today. Nevertheless, a lot can transpire over three decades – beneficiaries might pass away, new family members may be born, or the tax landscape may undergo significant shifts.

Removing Outdated Beneficiaries

In instances where a designated beneficiary has passed away, it’s pivotal to review and modify your Will. Even in instances where you named your spouse as beneficiary (classic sweetheart wills), you likely named beneficiaries who would inherit if your spouse predeceased you. Depending on the complexity of your Wills, these contingent beneficiaries may be the deceased beneficiary’s children, their spouse, or even your distant kin. If any of these beneficiaries passed away, you must make sure you are you still comfortable with those who are set to inherit in their stead. A lawyer can help you navigate through these provisions to ensure they align with your current preferences.

You may have also made specific bequests of personal property or sums of money to certain friends, family, or charities. Are these people still a part of your life? Relationships evolve, and the organizations you once supported might have undergone changes that could influence your giving. It’s imperative to reassess these bequests in light of any altered relationships or new entities that you may now wish to support. Moreover, tangible assets like property or collectibles you initially earmarked for specific individuals may have changed in value or been sold.

Protecting Beneficiaries

Protecting a beneficiary now grappling with a disability or receiving government aid warrants immediate attention. Inheriting assets directly can compromise a beneficiary’s eligibility for means-tested government programs. A strategic amendment to your will to direct their inheritance into a Supplemental Needs Trust can prevent this unintended consequence, safeguarding their government benefits while enriching their quality of life.

Welcoming New Beneficiaries

As life blossoms, new individuals may take root in your heart, necessitating inclusion in your Will. Whether it’s welcoming grandchildren or extending generosity to charities, updating your Will becomes pivotal. Crafting inheritance through a trust can ensure a structured and thoughtful distribution to younger beneficiaries under the watchful eye of a trustee.

Navigating Through Tax Changes

The ever-shifting landscape of tax laws also merits careful consideration when reassessing Wills. Tax regulations related to estate and capital gains tax have seen many alterations since the 1990s. These alterations may have substantially changed the effectiveness of your existing Wills. For example, historical increases to estate tax thresholds and the advent of portability have negated the need for credit shelter trusts for many people. Such trusts were a common vehicle to preserve the estate tax exemption of the first spouse to pass away. Now, such assets may benefit more from escaping capital gains tax than estate tax.

Life’s changes underscore the importance of maintaining a Will that genuinely mirrors your current wishes. Periodical review with a skilled estate planning attorney not only ensures the accurate reflection of your intentions, but also fortifies the protection of your legacy and loved ones.