When Should You Update Your Will After Major Life Changes?
Life is full of unexpected twists and turns. Major life events don’t just change your day-to-day existence – they can have significant implications for your estate planning too. Having an up-to-date will ensures your wishes are carried out correctly when you’re gone. Consulting with wills and estate planning lawyers in Melbourne can help you navigate these changes effectively and ensure your estate planning remains current.
Key Takeaways
- Review and update your will after significant life events such as marriage, divorce, having children, or acquiring major assets
- Different Australian states have varying laws regarding how life events affect wills
- Update related documents like powers of attorney and superannuation nominations simultaneously
- Act promptly after major life changes to avoid potential legal complications
- Store your updated will securely and inform executors of its location
Major Life Events That Should Prompt a Will Review
Marriage or Starting a De Facto Relationship
In Australia, getting married typically revokes any previous will unless it was made specifically in contemplation of that marriage. If you’ve recently tied the knot or registered a de facto relationship, you should review your beneficiary nominations and executor appointments. This helps ensure your spouse is properly provided for and has appropriate authority in managing your estate.
Separation or Divorce
When relationships end, your will likely needs updating. While divorce in most Australian jurisdictions automatically revokes gifts and appointments to a former spouse, separation alone might not have the same effect. After receiving final orders, check whether your existing documents need replacement to reflect your new circumstances and wishes.
Birth or Adoption of a Child
Welcoming a new child into your family is a prime time to update your will. You’ll need to nominate guardians who would care for your children if something happened to you, and revise how gifts are distributed to include your new family member. Without these updates, your child might not be properly provided for under your existing arrangements.
“Adding a new child to your will isn’t just about including them as beneficiaries – it’s about securing their future by appointing suitable guardians and trustees who share your values and parenting philosophy.” – Tonkin Legal
Death of a Beneficiary or Executor
If someone named in your will has passed away, you’ll need to update your documents accordingly. This might involve nominating a new executor or adjusting how your assets will be distributed. Having alternate beneficiaries and contingent gifts can help address these situations, but a formal update is the safest approach.
Significant Changes in Assets or Liabilities
Major financial changes warrant a will review. These include:
- Buying or selling property
- Starting or selling a business
- Receiving a large inheritance
- Taking on significant debt
- Acquiring valuable assets
When your financial situation changes substantially, revisit your asset lists, specific gifts, and residue clauses to ensure they still reflect your current circumstances and intentions.
How Australian Law Affects Will Changes After Life Events
Australian law has specific provisions regarding how life events impact your will. Marriage generally revokes a will unless it contains a contemplation of marriage clause. Divorce typically revokes any gifts to or appointments of your former spouse, though specific rules vary between states.
Each Australian state and territory has its own legislation governing wills and estates. What applies in Victoria might differ from rules in Queensland or Western Australia. This is why local legal advice is so valuable when updating estate planning documents.
Remember that superannuation death benefits often fall outside your will. These typically require separate binding death benefit nominations, which should be reviewed alongside your will after major life changes.
Practical Steps to Update Your Will
Start with a focused review of your existing will, examining beneficiary details, executor appointments, guardian nominations, specific gifts, and residuary clauses. Gather supporting documents like property titles, bank account details, superannuation information, and insurance policies.
While there are DIY options available, consulting a solicitor is advisable for complex situations. They can help ensure your will meets all legal requirements and truly reflects your wishes.
Update related documents at the same time, including powers of attorney, advance care directives, and superannuation nominations. Follow proper signing and witnessing formalities – informal additions or amendments may not be legally valid.
Store your updated will securely and maintain clear records. Let your executor or a trusted person know where to find your will when needed. Consider notifying relevant organisations such as your superannuation fund, bank, and financial advisers about your updated arrangements.
Timing and Urgency Considerations
The general rule is to update your will promptly after any major change affecting beneficiaries or executors. After marriage or registering a de facto relationship, aim to review within a few months. For divorce or separation, update once your legal status is clear. Following the birth or adoption of a child, review within a few months to add guardians and gifts.
Some situations call for more immediate action. If you’re facing a serious illness, planning extended travel, or about to complete major asset transfers, prioritise updating your will before these events occur.
Costs and Options in Australia
Several service providers can help update your will, including private solicitors, public trustees, community legal centres, and online services. Costs vary depending on complexity and provider. Simple updates might cost less than creating an entirely new will, while complex arrangements involving trusts or potential family provision claims typically cost more.
Timeframes for completing updates range from a few days to several weeks, depending on complexity. While DIY options exist for straightforward situations, they’re generally not recommended for complex family arrangements, substantial assets, or situations involving potential disputes.
Quick Post-Event Checklist
After a major life event:
- Confirm whether the event affects beneficiaries, executors, guardians or assets
- Update will wording or create a new will if required
- Review and update powers of attorney and advance care directives
- Update superannuation binding nominations and insurance beneficiaries
- Store the updated will securely and inform an executor of its location
Keeping Your Estate Plan Current
Life changes quickly, and your estate planning should keep pace. Regular reviews – ideally every 3-5 years or after any major life event – help ensure your will continues to reflect your wishes. This proactive approach can save your loved ones significant stress, potential disputes, and unnecessary costs down the track.
Maintaining an updated will is one of the most thoughtful things you can do for your family. It provides clarity during an emotionally difficult time and ensures your assets are distributed according to your wishes. Tonkin Legal can provide the guidance you need to keep your estate planning current and aligned with your life circumstances. Take action today to secure peace of mind for tomorrow.
