How to change a will and update your estate plan

By Joseph M. Dionisio, CFP®, Senior Wealth Strategist | Citizens Private Wealth

^{As a Senior Wealth Strategist, Joseph has more than three decades of experience working with high-net-worth individuals, families, and business owners to provide comprehensive personal financial planning services.}

Major life changes such as purchasing a home, marriage, birth of a child, selling a business, or starting retirement often come with a pile of paperwork. In addition to updating your insurance and making changes to your household budget, it's a good idea to add a quick review of your estate plan to your to-do list.

How to change a will

Before you attempt to revise a will, it's helpful to write out an informal list of changes you would like to make. Do you need to add your children as beneficiaries? Have you considered updating who you've designated as executor, trustee, or guardian? Has your estate grown to the size where you're thinking about placing some of your assets in a trust?

When updating a will, you generally have two options: adding a codicil or creating an entirely new document.

Add a codicil to a will

You can amend your will with a document called a codicil. It's an addendum of written instructions that add, revoke, or change the current stipulations surrounding your final wishes for asset distribution. As with a will, it's wise to consult with an estate lawyer to ensure the codicil is formatted correctly, includes all necessary legal clauses, and is properly executed. Once completed, you should store it with your original will.

Advantages of a codicil include:

• Requires less time to complete than drafting a new will
• Provides cost savings due to reduced time and paperwork, especially for small revisions
• Preserves the original will while allowing for specific updates

To guarantee its validity, a codicil must adhere to state law, which often requires witness signatures and notarization. This is a formal document included in your estate plan. It generally won't hold up as legal document if you only handwrite changes and attach them to your existing will. An estate lawyer can help you be sure you've met all legal requirements.

Create a new will

Writing a new will allows you to incorporate expansive changes into your estate plan, so it's a good option if you have more than just a few minor changes.

Advantages of making a new will include:

• Consolidates all your wishes into a single, updated document
• Allows you to modernize language, structure, and legal references
• Eliminates potential contradictions that could result from multiple codicils
• Provides an opportunity to fully review and update your estate plan based on recent life changes

Having multiple versions of your will can be confusing. You'll want to be sure the newest document is legally valid and properly executed. Wills generally state that all previous wills and codicils are revoked, though all old versions of the will should be destroyed. The best way to avoid potential pitfalls is to work with an attorney on updating your estate documents.

When to change a will

Consider changing your will when a major life event affects how you would distribute your assets. Marriage, divorce, new children or grandchildren, and career changes are some reasons to review your estate plan. You may also want to review your will if you experience substantial growth of your personal assets or if you want to change your charitable giving strategy.

Even if nothing significant has happened, it's a good idea to check your will every three to five years. It can give you a regular opportunity to assess your asset distribution plans and touch base with your executor, trustees and beneficiaries to update their information.

Other estate plan aspects to review

In addition to considering how to change a will, you may need to periodically revisit other elements of your estate plan, including:

• Directives: It's vital to have ancillary documents such as power of attorney, health care proxy and living will to direct your future medical care. You may also want to consider including a letter of final wishes.
• Tax planning: Review recent tax changes to determine if they affect your estate plan. Remember to consider state tax provisions, which can differ from federal regulations.
• Gifts: Gifting a portion of your assets to people, causes or institutions that are meaningful to you may offer tax-saving benefits. Carefully consider your charitable giving strategy and whether it should be included in your will or trust or if gifts should be directly bestowed to a beneficiary.
• Guardians: If you have minor children or take care of someone with disabilities, your will should designate a guardian and a successor guardian for their custody.
• Trusts: If you want to gain greater control of your assets and how they're distributed, consider using a trust as part of your estate plan. A trust is a legal document governed by state law that creates a legal arrangement to hold your assets — either before or after your death — that is managed by a trustee that you select. Different types of trusts have different rules about operation and administration and how those assets can be used by or on behalf of named beneficiaries.

How to create a sound strategy for your legacy

As your life changes, so should your financial, retirement and estate plans. A Citizens Wealth Advisor* can help you every step of the way to organize and update your strategies as you work toward your financial goals.

Request A Call