Learn what happens if you don’t update your will and why creating a will ensures your wishes are carried out.

Your will should be reviewed and updated anytime there’s a significant change in your life. This could be marriage, divorce, the birth of a child, or the acquisition of a new asset like real estate. Additionally, if a person named in your will, such as an executor or beneficiary, is no longer able to fulfill that role, it’s time to revisit your estate plan. 

What Happens If You Don’t Update Your Will?

Failing to update your will after major life changes can lead to complications. Some common examples are:

• If you’ve had another child or adopted, your existing will might not include them as a beneficiary. 
• If you have gone through a divorce, your ex-spouse may still be listed as a beneficiary or with a fiduciary role.
• If an executor named in your will has passed away, the state statutes will dictate who the new executor will be. 

Failing to update your will may result in losing control over how your assets are distributed and who oversees your estate. Additionally, changes in tax laws could affect the distribution of your estate, making it crucial to keep your documents up to date.

Does Inheritance Require an Update?

If you inherit money or property, you might wonder if this requires an update to your will. In most cases, the answer is no. For example, if you inherit money and deposit it into your bank account or use it to purchase a new home, it becomes part of your estate and is covered under the existing provisions of your will. However, if you are a beneficiary of an ongoing trust, you may need to update your will to reflect any specific instructions regarding that trust.

A notable exception arises if you inherit real estate located in another state. We see this frequently, given how many retirees escape Western PA winters for warmer places, and their beneficiaries inherit a winter home when they pass. In this case, setting up a revocable trust to hold the property can help avoid ancillary probate in multiple states. This strategy simplifies the estate administration process by keeping the out-of-state property out of probate court. 

Many people tend to overlook their estate plans during these times of change. When drafting a will, attorneys often try to cover as many contingencies as possible to minimize the need for future updates. However, a good rule of thumb is to review your will every five years, even if nothing significant has changed, to ensure that it still aligns with any updates in the law. 

Much like you regularly check in with your financial advisor, it’s a good idea to maintain an ongoing relationship with your estate attorney.