You have a will, so you can rest easy, right? Not necessarily. If your will is outdated, it can cause more harm than good. Even though it can provide for some contingencies, an old will cannot cover every change that may have occurred since it was first drafted. Here are 17 reasons why it may be time for an update.
Account for What Is Different
Professionals advise that you review your will every few years and more often if situations such as the following have occurred since you last updated your will.
- Family changes. Events such as marriage, divorce, death, birth or adoption may affect how your estate will be distributed, who should act as guardian for your dependents, and who should be named as executor or personal representative of your estate.
- Relocating to a new state. Laws among the states vary. Moving to a new state or purchasing property in another state can affect estate plans and how property in that new state will be taxed or distributed.
- Changes in your estate’s value. When you made your will, your assets may have been relatively modest. Now the value may be larger, and your will no longer reflects how you would like to divide your estate.
- Tax law changes. Federal and state tax laws are constantly changing, so you will want to be aware of any updates that affect you. An outdated estate plan may fail to take advantage of strategies that will minimize taxes.
Support a favorite cause. If you have developed a relationship with an organization, such as Hospice of Central PA, you may want to benefit a particular charity with a gift in your estate. Contact us for sample language you can share with your attorney to include a gift to Hospice of Central PA in your will.
If you need to make or revise a will here are some things you can do with it.
- Make gifts. You can give jewelry, art or other prized possessions to those who will appreciate them.
- Create a trust for your loved ones. This is a good way to protect family and safeguard money. A professional trustee can manage your money wisely and make sure your beneficiaries receive enough income to maintain their standard of living.
- Name your executor or personal representative. Before you choose an executor or personal representative, weigh the qualifications of your choice against the many critical duties required.
- Name a guardian for a child or a dependent under your care. Choose someone who is willing and qualified to take the job and who shares your values and way of life.
- Take care of your pets. You can identify potential caregivers for your pet or set up a trust for their care.
- Pass on a closely held business. You can provide for the management and disposition of your interest in a closely held business to preserve its value and your family’s participation.
Do you want to help support Hospice of Central PA after your lifetime? If so, there are many ways you can do this in your will. Here are some suggestions.
- Give Hospice of Central PA a share of what is left in your estate after other obligations are met.
- Give Hospice of Central PA a specific amount of cash or securities.
- Leave certain personal or real property to Hospice of Central PA and allow the organization to decide whether to keep it or sell it.
- Make a contingent bequest. An organization will receive certain assets only if a named individual does not survive you. For example, you could provide for Hospice of Central PA to receive a gift only if your spouse does not survive you. Such a provision recognizes the need to provide first for family members or loved ones.
- Create a charitable remainder trust to pay an income to your spouse or other loved one(s) for life and designate the remaining principal for Hospice of Central PA.
- Create a charitable lead trust to pay income to Hospice of Central PA for several years, or another person’s lifetime, with the trust assets eventually being distributed to your family.
To ensure your will accomplishes all you intend, seek the help of an attorney who specializes in estate planning. If Hospice of Central PA fits into your plans, we can help you choose the method of giving that best satisfies your wishes and our needs. For more information, please contact Yvette Lynch, Director of Development, Hospice of Central PA at (717) 814-3412 or ylynch@hospiceofcentralpa.org.