Your Will Isn't 'Set It and Forget It': When and How to Update Your Estate Plan

Now that you understand the key parts of a will from our previous article, let's discuss the critical process of keeping it current as your life changes. In this third installment of our estate planning series, we're moving into an advanced but essential strategy: the regular maintenance of your most important documents.

Many people treat creating a will like a one-time task to be checked off a list. But a will isn't a "set it and forget it" document. Life is dynamic, and your financial situation, family structure, and personal wishes will inevitably evolve. The biggest risk you face after creating a will is having it become outdated. An old will can fail to protect your loved ones as intended, causing confusion, conflict, and financial hardship—the very things you sought to prevent.

As a Chartered Financial Consultant® (ChFC®), I see an estate plan as a living component of your overall financial life. It must adapt to your personal and financial milestones. Let’s explore when and how to update your will to ensure it always reflects your true intentions.

The Top 7 Life Events That Can Make Your Will Obsolete

Think of your will as a snapshot of your life at a specific moment. When the picture changes dramatically, you need a new snapshot. Certain life events and estate planning go hand-in-hand, and experiencing any of the following should be an automatic trigger to review your documents with your financial planner and estate attorney.

1. Marriage, Divorce, or a New Partnership: Getting married typically gives your new spouse certain inheritance rights by law, which may conflict with your existing will. Conversely, a divorce usually revokes gifts to an ex-spouse, but what about their family members who might still be named? Or what if you want your ex-spouse to still receive something? A new will is the only way to clarify these intentions.

2. The Birth or Adoption of a Child (or Grandchild): This is perhaps the most joyful and most critical reason to update your will. You need to name a legal guardian to care for your minor child if something happens to you. You also need to adjust your bequests to include the new family member, ensuring they are provided for financially through trusts or other structures.

3. The Death of a Key Person: If a beneficiary, executor, or named guardian in your will passes away before you do, your will needs an immediate update. Without a named successor, the court may have to appoint someone to fill the role, and it may not be the person you would have chosen.

4. A Significant Change in Your Financial Situation: Did you receive a large inheritance, sell a business, or take on significant debt? A major financial swing in either direction can make your old distribution plan impractical or unfair. A financial windfall might necessitate creating trusts for beneficiaries, while a significant loss of assets could mean your previous bequests are no longer possible to fulfill.

5. Acquiring a Major Asset: Buying a new home, a vacation property, or a business requires a fresh look at your estate plan. You need to specify who should inherit that asset and address any associated debts. This is a key financial milestone that your will must reflect.

6. Moving to a Different State or Country: Estate laws are determined at the state level. A will that was perfectly valid in California may have complications or be interpreted differently under Florida law. If you move, have a local attorney review your documents to ensure they comply with your new state's regulations.

7. A Change in Your Relationship with a Beneficiary: Relationships can change over time. If you’ve become estranged from a named beneficiary or, conversely, reconciled with a family member you previously excluded, your will should be updated to reflect your current wishes.

Making a Small Change: What is a Codicil?

So, what if you just need to make a minor tweak? For instance, you want to change your named executor from your sister to your brother, but everything else remains the same. In these cases, you might not need a completely new will. Instead, you can use a legal document called a codicil to a will.

A codicil is an amendment or addendum to your existing will. It must be executed with the same legal formalities as a will (i.e., signed and witnessed) to be valid. It’s a tool for simple, isolated changes.

However, use codicils with caution. Having multiple codicils can create confusion and increase the risk of a legal challenge. If you find yourself needing to make more than one or two simple changes, it's often cleaner, safer, and clearer to create an entirely new will.

Starting Over: How to Properly Revoke an Old Will and Create a New One

For any of the major life events listed above, a codicil is rarely sufficient. The cleanest and most legally sound approach for how to change a will significantly is to start fresh. This involves formally revoking a will and all its previous codicils.

The process is straightforward but must be done correctly:

1. Draft a New Will: Work with an estate planning attorney to create a new will that reflects your current circumstances and wishes.
2. Include Revocation Language: Your new will should contain specific legal language at the beginning, such as, "I hereby revoke all prior Wills and Codicils made by me." This clause officially invalidates all previous estate documents.
3. Execute the New Will: Sign and witness the new will according to your state’s legal requirements. Once executed, it becomes your active last will and testament.
4. Destroy Old Copies: While the revocation clause is the legally operative step, it is also a best practice to physically destroy the original and all copies of your old will to prevent any possible confusion after your death.

Beyond the Will: Using a 'Side Letter of Instruction' for Personal Wishes

Finally, as you update your will, consider adding a companion document: a side instruction letter, sometimes called a letter of intent. This document is not legally binding like a will, but it is incredibly valuable for your executor and loved ones.

While your will handles the legal transfer of assets, the side letter handles the personal details. You can use it to:

• Express your wishes for your funeral or memorial service.
• Provide the location of important documents, keys, and digital account passwords.
• Explain why you made certain decisions in your will, which can help prevent family conflict.
• Direct the distribution of personal items with sentimental value but little monetary worth (e.g., photo albums, family heirlooms, personal collections).

This letter gives your executor a clear roadmap and provides your family with personal guidance in a difficult time, separating practical instructions from the formal legal language of the will.

To recap, your will is a cornerstone of your financial plan, but only if it’s current. By knowing when to update your will—triggered by major life events—and understanding the proper methods for making changes, you can ensure your final wishes are honored and your loved ones are protected.

Has a major life event made you question your current estate plan? Let's perform a comprehensive financial review to ensure your documents align with your new reality. Contact us.