Dying without a will can be a costly mistake, but dying with a will that is out of date can cause just as much of a headache for those you leave behind, as Christina Duck, associate at Ashton KCJ, explains.

If you’ve gone to the trouble of putting down your wishes in a legally binding document, it’s vital that you review your will from time to time to ensure that, in your present circumstances, it will still have the effect that you intend.

A will sets out what will happen to your assets when you die, but if those assets change over time, so can the effect of your will.

When should you review your will?

You may want to update your will if, for example:

• You’ve received a significant inheritance that pushes your estate above the inheritance tax threshold. IHT is charged at 40% on the value of assets in your estate above the tax-free allowance of up to £325,000 for an individual, or up to £650,000 for a married couple.
• Your inheritance came as a result of the death of a close family member who was mentioned in your will.
• You referred to a specific asset, such as a property that you have since sold, or an antique that you have donated to charity, or given away, in your lifetime. Otherwise, what may have been the intention to pass your assets on equally, may end up with one beneficiary getting nothing, because you didn't own the asset listed that was meant for them at the date of your death.

Changes to personal circumstances

When considering whether or not you need to review your will, it may not be your assets that have changed, but rather your personal circumstances:

• If you are in the process of getting divorced, you may want to remove references to your ex until the divorce is finalised.
• Getting married revokes a will on the wedding day, so it’s vital to prepare a new will if you’re due to tie the knot.
• You may need to update your own will if your son or daughter gets married. You may also want to make provision for future grandchildren. On the other hand, maybe you have reservations about an in-law that merits you considering trust funds, or other mechanisms, to protect your wishes in the event of a possible divorce.
• If you have young children, you’ll want to ensure that your will provides for them in the event of your death. A will gives you the chance to appoint guardians to look after your children until they are 18 years old, but what might be the right choice of guardian when they were babies may change if, for example, your parents have become too ill or elderly to cope with the role.

A will can also provide the opportunity for you to leave assets to children in a trust fund, so that you can set the age that the children will inherit, safe in the knowledge that the nominated trustees will look after the money. When you review your will, you may even want to later increase the age that a child would inherit, depending on your circumstances.  

Whatever your change of circumstance, you should update your will in line with your wishes. Failing to do so may mean that your assets go to someone that you didn’t intend to be a beneficiary.

About the author

Christina Duck is an associate at Ashton KCJ in Cambridge, and is a qualified trust and estate practitioner (TEP). She specialises in wills, trusts, tax planning and administering estates.