When Should You Plan Your Will?
Passing away without leaving a will behind can leave your loved ones to deal with legal hassles at a time of sorrow and grief. Although a will will never ease the loss that your bereaving family experiences, it may still help them avoid legal problems and cope.
Your busy life may give you little time to think about the future. Even if you’ve given a thought to planning a will, you’re probably struggling to set the wheels in motion. However, it’s really important to make time by pushing aside all the reasons holding you back—time, money, or motivation.
We’re living in a digital-first world where making wills online doesn’t really take that long! Making a will is not expensive, particularly when considering all that your loved ones could lose without one.
But is there a right time to plan your will?
Simple answer - no, there’s no right time. You can create a will as long as you’re 18 years or older. However, certain significant life events and reasons make it even more important to make a will and update it as often as you need.
This article is a guide to help you decide when to plan your will.
9 Reasons and Events that Warrant A Will
There is no defined time to create your will, but certain life situations and reasons will warrant prioritising your estate plans.
1. Marriage
Getting married is a significant life event. It brings two people and their financial situations together. In a marriage, you legally commit to looking after your spouse as long as you live. When your spouse's assets are combined with yours, a will and other estate planning documents are also created.
The law gives your spouse legal status and recognises them as a potential beneficiary should you pass away without a will. Unfortunately, long-term partners and cohabitees have no legal status yet. (There may be signs of amending the laws to reflect the changing dynamics in society, but that is yet to happen.)
2. New Business
When launching a business, it’s important to think about estate planning. Your business is a valuable asset that needs protection, just like any other important possession.
By having a solid estate plan—such as a will—you can ensure your business is managed according to your wishes if something unexpected happens. This allows you to assign successors, include instructions for managing business assets, and minimise any tax burdens arising from your business’ income and valuation.
3. Health Condition
Planning your estate or drafting a will is usually an afterthought when you’re young. Even though it is natural to believe that you have decades ahead of you, it does not mean you should ignore your future plans.
Unfortunately, emergencies come with no warning. Let any major changes in your health be a surefire sign to plan a will. It can help you appoint a healthcare proxy to make a critical medical decision when you can’t do it yourself.
4. Buying Property
Buying a new home or owning a new property is a lifelong dream for most people. Growing assets is another good reason to draft a will. Clearly naming the beneficiaries of your property in the will ensures it gets passed on as per your wishes and reduces stress and confusion among family members after you pass away.
5. Separation or Divorce
If you separate or divorce, you need to create a fresh will or change an existing one. Until the divorce is final and completed, your spouse is entitled to inherit your estate if you die intestate (without a will).
This is because the law still recognises them as your spouse even though your relationship is over until you divorce. Unless you specify otherwise in your will, your spouse is still considered a beneficiary under the wills and probate law.
6. Welcoming a New Child or Family Members
Welcoming a child’s birth is another significant milestone in life. It automatically translates to a reason to create or update your will.
You can name your children in the will to ensure each child receives the bequest you leave them. But you need to update your will with every new member (biological children or stepchildren) entering your family. It’s also important to include the guardian clause for children under 18. This clause allows you to assign a person who will care for your minor children if you or your spouse pass away.
7. Financial Changes
A will is effective when it reflects the outcome of the latest events, including your financial health. Falling on hard times and having to dissolve certain assets is a difficult financial situation to be in. On the flip side, you can be fortunate enough to receive a windfall, either a large inheritance or a promotion with big bonuses.
Either way, it means a significant change in your financial situation warranting a new or updated will. Failing to do so may put you and your loved ones at risk of meeting legal troubles.
8. Remarriage
Marriage or remarriage deems any previous will null and void, which means you’ll have to chalk up a fresh will or update it. Not updating your will risks disinheriting your children from the first marriage.
If you pass away intestate, your estate will go to your new legal partner and family, leaving your children from your first marriage with nothing. Taking time to review your will for the sake of your children’s future is very important after remarriage, and it’s best not to delay this decision.
9. Change of Executor(s)
An executor is a designated individual who will manage your estate following your death. However, you’ll need to change and update your will if the person you’ve named has died, moved away, or, for any other reason, is no longer able to discharge their duties.
In Conclusion
A will is not just for ageing people, nor is it a wealth instrument only meant for the high-heeled. Planning a will is one of the smartest decisions you can make to manage your estate, protect your loved ones, and maintain financial security even after you have passed.
It’s all about taking charge of your financial future.
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