When should you review and update your Will?
At a minimum, it is a best practice to review a wills and other estate planning documents annually to ensure the terms continue to reflect your wishes accurately. Due to the frequency at which the law changes, reviewing your estate plan regularly ensures that your estate planning strategy remains relevant and takes into account changes in the law. For example, annual amendments to the Income Tax Act can create new strategies to consider within your estate plan. However, the anticipation or occurrence of a significant life event should also trigger a review of your estate plan. Examples of life events where reviewing your will and estate plan are essential may include, but are not limited to:
Childbirth or Adoption
If you are a new parent, revisiting your will to ensure there is a plan in place for your child’s care is essential if something happens to you.
Grandchildren
While many wills can consider the inclusion of unnamed grandchildren by default, it is prudent to review your estate plan during these milestones.
Changes in your financial circumstances
Circumstances such as inheriting a large sum of money, or getting a significant promotion, may require a change to your estate planning strategy.
Changes in personal circumstances
Both positive and negative changes in personal circumstances should trigger a review of your estate plan. For example, if your child is getting married, you may want to consider whether changes to your will are necessary. Sadly, family dynamics can also turn sour, leading will-makers to rethink their estate planning strategy.
Changes of heart
Over time, feelings can change. You may have previously decided to leave assets to one beneficiary, but later determine that you would prefer to distribute them differently.
Changes to executors or beneficiaries
If an executor or beneficiary moves, develops a critical illness, goes through a separation or divorce, or passes away, you may need to consider how this will impact the instructions in your will.
When you divorce in Ontario, the provisions in your will referring to your ex-spouse are revoked. However, it is imperative to revisit your will to ensure that the assets intended for your ex-spouse are distributed following your wishes.
Getting married or entering a common-law relationship
While getting married or entering a common-law relationship does not negate an existing will, reviewing your will to ensure it still reflects your wishes and provides for your spouse or common-law partner is important.
Gifts of property or assets that are named in your will or other estate planning documents
If, for example, you gift property to your children that is specifically mentioned in your will while you are still alive, you should remove references to that property to avoid future confusion or disagreements.
Illness
If you become ill, review your estate planning documents to ensure they meet your needs and include the proper documentation. For example, powers of attorney allow you to appoint individuals to handle decisions if you lose the capacity to do so and substitute decision-maker cards allow substitute decision-makers to make healthcare decisions if you are incapable of doing so yourself.
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