Does Your Will Need To Be Updated?

Too many wills are so old they’re no longer relevant to the writer’s current circumstances – his family responsibilities, assets and liabilities.

Here are some events that should always trigger at least a review of your will. Do any of these apply to you?

• You have moved to a new state. The will drawn in the state you left may not be valid in another state. Your estate could conceivably be taxed in both states unless a proper will is drawn to conform to the laws in your new state of residence. Take special note if you moved from a community-property state to a common-law state, or vice versa.
• You have purchased property in another state. Complications can arise if you have property in two different states because two sets of laws may apply.
• Your family changes. Birth, death, marriage, divorce, adoption, separation – any of these may affect certain provisions of your will.
• Your assets have changed. Inheriting property, transferring assets to a trust, selling a business or taking out a large mortgage – each may require an amendment or revision of your will.
• Estate and gift tax law changes. New tax laws influence your insurance needs, methods of gifting and desirability of trusts. For example, the unlimited material deduction and the unified estate tax credit may substantially reduce your estate’s insurance requirements.

If your estate is substantial, it will certainly be complex to plan and administer. Review your situation with your advisers annually and discuss any major developments that might have an impact on your will and any trusts.