Used By Dates: Does My Will Expire, Even if I Haven’t Yet? Part 2

We continue our examination of when you might need to update your Will, and more importantly, why. Although the Will you made while you were still setting up your whole life may still be legally valid, your old Will may not represent your current wishes, asset structure, circumstances or family structure. By the second half of your life, the divergence between your old assets and family structures and your new structures could be more different. We continue our journey decade by decade to identify moments to review your documents.

Forties (sandwich decade – caring for kids and elderly parents)

 

This is the time in your life where you start accumulating substantial assets (including super). It’s important to update your Will when there are any significant changes to the value of your estate.

 

Unfortunately, according to the Australian Bureau of Statistics, your forties are also more likely to be the age at which you divorce . Divorce is another important event to review your estate planning. Divorce invalidates any gift to your ex-spouse, which, depending on your circumstances may or may not align with your intentions. For example if you had young children that were going to live with your ex-spouse, you may intend to maintain provision for them in your Will.

 

You also need to consider any particular issues relating to your beneficiaries that need to be taken into consideration such as children with disabilities or the care for elderly parents. What about your own circumstances, do you have adequate funds to pay down debt if your partner died?

 

The ‘sandwich generation’ refers to people who care for their ageing parents while supporting their own children. Have you spoken to your parents about what would happen if they died or became incapacitated? Do they have a Will and have you discussed their wishes around health care; where they live; who should make financial and legal decisions for them and what kind of life-saving measures they desire – these are all topics that should be gently raised.

 

Fifties (an uneven sandwich, with the increasing needs of grown children)

While your children may be grown, you may still be supporting them financially (university, weddings, first homes). You may also be taking on more care of elderly parents. Estate planning becomes very important at this stage as you manage your current responsibilities but also prepare for the future.

 

Your Will also needs to be updated if the executor named in your Will has become ill, died or can no longer handle the responsibility.

 

You may need to update your Will if there’s been a death of a family member or beneficiary. You also need to ensure that you have left your estate to your children in a manner that will provide them with ongoing tax benefits as well as protect their inheritance from relationship breakdown and bankruptcy. Have you adequately provided for grandchildren?

 

Sixties and Onwards (health concerns, end of life decisions)

You’ve done it, the golden years have arrived at last. Is your Will up to date and appropriate for the circumstances of your beneficiaries? Have your children remarried, divorced or do they have blended families? Legacies also change over time and some may have devalued, you may have bought or sold assets. Are the details in your estate still up-to-date?

 

Do you have a valid Enduring Power of Attorney to cover you if you lost capacity? Have you reviewed your superannuation arrangements and determined how much tax would be levied on your super if you died and it passed to your adult children. There are strategies that can be implemented after the age of sixty to reduce these.

 

Have you considered who should make decisions on your behalf if you lost capacity? Do you want to be kept alive on life support or authorise someone to refuse medical treatment or turn off life support?

 

You should review your Will regularly, every 3 to 5 years or whenever there are significant changes to your circumstances.