3 minute read
LEGAL
RENEE SAPELLI
Partner Tindall Gask Bentley
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LEGAL
Three reasons to update your will in 2022
WITH THE NEW FINANCIAL YEAR beginning on Friday 1 July, now is a good time to review your will. It’s a good idea to review your will regularly to ensure it accurately reflects your wishes and any changes to your financial circumstances. Make it a new financial year resolution.
There are many reasons why your will may be outdated. For example, you may have bought your dream family home, purchased your first investment property or married your long-term partner.
In this article I explore three common scenarios, each of which may prompt you to consider changing your will.
HAS SOMEONE LEFT OR JOINED YOUR FAMILY?
It’s inevitable you’ll experience losing a loved one. Whether it happens by death or divorce/separation, when you gift assets in your will, you should consider the redistribution of those assets elsewhere.
Divorce voids a will, and therefore, it’s important you make a new will promptly. In the case of a divorce, a bequest to your former spouse will be nullified, so if you’d like them to remain a beneficiary of your estate, a provision for a former spouse must be clearly stated.
Marriage voids a will unless special wording has been added to include your intentions to marry a specific person.
You may have had the joy of welcoming someone into your family, perhaps the birth of a child, the arrival of a grandchild or the completion of an adoption. In this situation, you may consider updating your will to include gifts for your family’s new addition.
HAVE YOUR FINANCIAL CIRCUMSTANCES CHANGED?
There may be times when your estate changes dramatically. For instance, you may have won Powerball, received an inheritance or picked the trifecta in the race that stops a nation, the Melbourne Cup.
Your financial position may have deteriorated. You may have sold or disposed of assets. For example, the land you held in a new housing estate that’s now not worth as much as it was when you bought the land and you left it to a particular person in your will. It’s vital to update your will, especially if there are reasons why your gifts may fail.
COVID-19 has had a major impact on people’s lives, particularly with respect to their finances. If you face these challenges, you may want to review your will to determine how your estate is to be disbursed.
HAVE YOU CHANGED YOUR MIND?
Your relationships can change in dramatic and unforeseen ways. For instance, that close relationship you had with your child has now become strained and you no longer speak with that child.
A significant change in your circumstances may have an impact on your estate. Therefore, you may want to change the terms of your will. Having a change of heart over some personal aspect may be a trigger to reflect on your priorities. For example, you may want to consider a new charity for a bequest or leave a greater portion of your estate to one child as opposed to another of your children.
The relationship you once had with your current executor may have changed for the worse, and therefore, you may want to consider appointing someone neutral, such as your lawyer.
The appointment of a minor’s guardian is a crucial decision to make. The relationship you have with the current guardian may no longer exist or they may not be able to take on that role in the unfortunate event of the passing of you and your spouse.
If you decide to amend your will, it’s imperative you do it properly. It’s not enough to make the amendments by doodling over your will and initialling the changes or writing a letter to your executor setting out the changes. A solicitor can efficiently do simple amendments.
The legal services page of the WA Police Union website contains more information about wills, including downloadable simple will kits.
