There are many tools available for estate planning. One of the most important is the will. One reason the will is so important is that it serves as a catch all for assets you may not have today and may acquire in the future.
A will allows you to express your final wishes and empowers the person or persons that you name to make sure your wishes are followed. Not only can take care of the ones that you love from the grave but can give you peace of mind while you are living. Just as important is the fact that you can save those that you love and leave behind from additional heartache when they have just suffered a loss.
One issue with a will is that for many of us treat it as a one and done proposition. A will that may have served our needs five years ago can soon become dated as a result of a life change and not serve our current wishes.
Very few thing in life are static. Your will should reflect your current life situation. A question you should ask yourself is whether the will you prepared a year, five or ten years ago still does what you want it to.
Are the beneficiaries of your current will the same today? Do you want your will to accomplish the same things? Personally, my son was a minor five years ago but is now a productive adult. It may not be necessary to have all assets go into a trust like they would have when he was a minor.
Certain life events may change your perspective and wishes from a will you created earlier. Some of these include:
- Marriage
- Divorce
- Remarriage
- Birth of a child
- The need to create a trust for a minor or incapacitated child
- An increase or a decrease in wealth
- A desire for sentimental property to got to a certain heir
It is important that old wills are destroyed or marked invalid so the new will controls. Litigation by interested parties can wipe out your hard work if perceived or actual beneficiaries are required to litigate.
The message here is make sure that you update your will as your life circumstances change.
Wesley Hill, JD CPA CFE
(404) 396-1716