ISSUE #13
When to Update Your Will

You may feel that your final affairs are in good order, simply because you have a will. However, if your will is not updated regularly, it may not accomplish your goals. Life situations do change, and a will that was appropriate a few years ago may no longer reflect your current intentions. Here are some important points to keep in mind:

1. Change in Marital Status -- Make sure you have your will reviewed and updated whenever you get married, divorced, remarried or your spouse dies. Most people plan to leave their entire estate to their surviving spouse, yet they forget to change their plans when their marital status changes. Otherwise, you may end up leaving your assets to the wrong person, such as your former spouse. You may also unintentionally disinherit your children from a previous marriage.

2. Taking Care of Your Minor Children -- When you have minor children, you can use your will to name a legal guardian for your children, in case you and your spouse die prematurely. Without a will that names the guardian of your choice, this very important decision will be made by the court. With a will, the choice is yours. You can also set up a trust in your will that will provide financial support for your surviving children. Make sure to review your will with the birth of each child.

3. Financial Parenting -- You can use a trust to control when your children (and grandchildren) will receive their inheritance. With a trust in your will, you can stagger the distributions so that a child receives portions of the inheritance at different ages. For example, you may wish to distribute one-third at age 25, another one-third at age 30, and the final one-third at age 35. This prevents an immature child or grandchild from receiving, and spending, an entire inheritance at age 18. Have your will reviewed if you have an adult child who may not be able to handle money wisely.

4. Your Financial Situation Changes – Your will should be reviewed after any significant change in your financial situation, especially if you have received a large inheritance. We sometimes forget that the size of our estate may increase considerably toward the end of life. If this happens, it is important to think about how you want to distribute any additional wealth. Likewise, if the value of your estate shrinks, you may wish to reallocate your distributions.

5. Other Reasons -- You should have your will reviewed if one of your named beneficiaries dies, if you decide to disinherit a family member, or if you need to change your personal representative (or executor). Please note that in most states you cannot disinherit your current spouse. It is also a good idea to have your will reviewed if you move to a different state. Your out-of-state will may be just fine, but you need to ask your attorney, who can advise you on your new state’s law.

6. Regular Review -- Even if none of these concerns seems to affect your own situation, it is important to meet with your attorney every 3-5 years to make sure your will is still appropriate. There may have been changes in state or federal law that would affect your plans. Your estate may also have grown to the point that it is subject to estate tax, in which case your attorney can take some simple steps to reduce your taxes. It is also important to regularly review and update your other planning documents, such as your living will, your durable power of attorney and your health care surrogate designation.

7. Add a Charitable Beneficiary -- Another good reason to get your will updated is to add a charitable beneficiary. Naming a favorite charity to receive a part of your estate is a great way to ensure that your financial support will continue, even after you are no longer here. When you name a charity in your will, make sure you obtain the exact legal name and address of the charity, so your lawyer can properly draft the charitable bequest. It is also a good idea to discuss your plan with the charity, so that they will know to expect your charitable gift.

8. Getting Professional Help -- A will is a fairly simple and inexpensive document, which your attorney can prepare after a brief conversation with you. Avoid the mistake of trying to write your own will, or using a fill-in-the-blank form. The role of your attorney is to assess your situation and protect your best interests. Without an attorney, you may make a major mistake that will cause considerable harm to your loved ones. The price of a will is a very small price to pay for the peace of mind that your affairs are in order and will be handled the way you want.

Fraud and financial exploitation have become serious problems for older Americans. Clever criminals have developed ingenious methods for preying on retired people and stealing from them. Some seniors have lost their life savings. Here are some ideas for reducing your vulnerability to fraud.

This publication has been prepared as an educational resource to help the reader identify areas of potential concern. The publisher is not engaged in rendering legal, accounting or other professional services. The information contained in this publication should not be acted upon without first obtaining the advice of a professional adviser. 2004 © Florida Philanthropic Advisors, LLC. Material may not be used without permission.

Our planned giving director, Paul Ditlevson, can be of tremendous service in helping you integrate your giving goals with your overall estate plan. He can also help you prepare to visit your attorney. You can reach Mr. Ditlevson by calling 419-289-5090 or by email to pditlevs@ashland.edu or regular mail at 401 College Avenue, Ashland, OH 44805.