8 reasons to update or review your Will
Who wants to talk about Wills? Well to be honest, probably not many of us!
Wills are a document that, once completed, most people gratefully file away as “done and dusted”. And we absolutely understand that. After all, it’s tough to think about a time when we’re not around to share in life, or care for our loved ones.
But as lawyers we see the real difference that an up-to-date and carefully considered Will can make for family members.
Wills help to eliminate uncertainty around a person’s final wishes. They also ensure that your family, friends, or the causes you hold dear, are provided or cared for in the way you would want. Just having a Will makes the process of tidying a person’s affairs (known as estate administration) much simpler for family and can help avoid additional costs. In some situations, a comprehensive Will can even help a family avoid litigation.
September is Wills Month. This year we are encouraging our clients to use this as a prompt to ensure their Will remains up to date with their personal and financial situation.
Below we’ve listed 8 key life moments that require you to review the provisions in your Will, and potentially update it. If none of the below apply to you, we still recommend you undertake a Will review once every five years. This additionally makes sure your Will remains up to date with any legislative changes that might impact it.
8 reasons to review or update your Will
1. Getting married or being in a de-facto relationship
Many people don’t realise that your Will is automatically cancelled if you get married or enter into a civil union. However, if you are planning to get married it is possible to make a Will that will remain valid after you marry – you’ll need to discuss this with your lawyer.
If you are in a new de-facto relationship, you may also need to review your Will to ensure this relationship is properly accounted for.
2. Divorce or separation
If you have separated or are in the process of dissolving your marriage, it’s important to check that your Will still reflects your wishes. This is because until you are officially divorced, your spouse will still be entitled to the benefits outlined in your Will.
It’s important to note that a Will cannot override your obligations under other legislation. For example, if you do not leave a fair provision for certain close family members in your Will, the Family Protection Act gives those people the opportunity to make a claim against your Will. It’s important to discuss your family circumstances with your lawyer to ensure the important people in your life are adequately accounted for.
3. Your children enter into marriage or de-facto relationships
If your children are adults, the implications their relationships and family situations may have on your estate is also something you might wish to consider. In most cases, people who have lived together in a de-facto relationship for at least 3 years are covered under New Zealand relationship property law. It’s best to discuss these individual circumstances with your lawyer.
4. Starting a family
Although it is not legally required, we recommend all parents name legal guardians for their children in their Will – and the suitability of the people you choose when a child is born can change over time. In the event both parents pass away, legal guardians won’t necessarily take on the role of day-to-day care for the children but are responsible for making decisions around their healthcare, education, culture and providing financially for them.
As your children get older, or perhaps there’s a new addition to the family, it’s worth checking in with your Guardians to make sure they are still able to take on this responsibility.
If you’ve chosen more than one guardian, it’s important to ensure their relationship remains amicable to avoid the potential for unnecessary conflict in decision-making.
5. New grandchildren or blended families
You may have new people in your life that you would like to make provision for in your Will. As noted above, a review of your Will can also ensure you’ve made “fair provision” for family members, so that your Will is less likely to be challenged on these grounds.
6. If the executor or a significant beneficiary named in your Will passes away
An Executor is a person you name in your Will who is responsible for carrying out your wishes, distributing your Estate, repaying any costs and debts from this, as well as the general tidying and closing of your affairs. Beneficiaries are the people who will inherit your estate, often your immediate family. You can name any person, organisation, or Family Trust as a beneficiary.
Choosing a new Executor requires careful thought, as there are financial and practical responsibilities that come with the role, some which are carried out over a long period of time. It’s common to choose your spouse or partner, parents, adult children, a sibling, or a trusted family friend. You can also appoint a professional such as your lawyer to take this role.
7. If your assets or debts increase significantly
Have you recently acquired or sold a business or property? If so, you may need to account for these changes. Similarly if you have restructured your assets or set up a Trust, a partnership or company. If you’re not sure whether a financial or asset change is significant encough to warrant a Will update, its best to check in with your lawyer.
8. Leaving a legacy
Reviewing your Will is also a great opportunity to consider how you want to support the people and causes you care about when you’re no longer here. Perhaps there is a special gift you’d like to leave to a family member, or an organisation you’d like to support.
One option for creating a legacy is leaving a gift to an endowment fund manager like the Eastern Bay Community Foundation. In this model, charitable gifts are carefully invested, with the income from the investment going to a cause or causes of the donor’s choice. It enables people to give long-term, well beyond their lifetime to a cause or a charity they care about in their local community.
Wills Month Donation
This September for every new Will or Will update, Apogee Legal will donate $50 to the Eastern Bay Community Foundation.
Find out more about the Foundation’s work here, or click the button below to get in touch with our team.