Your will should document your wishes for how your assets and responsibilities will be handled after death. However, “Simply making a will isn’t a one-and-done task,” says Harshdeep Jakhar, Associate Lawyer at Juriscorp Law. “Over time, life changes can render your will outdated or even contradictory to your current wishes.”
An estimated 2.95 million Canadians have “out-of-date” wills, and only about 49% of people aged 55 and older have a will that’s fully up to date. That’s a concerning gap, given how laws evolve and personal circumstances change.
A will that hasn’t been reviewed in years may no longer do what you intended, defeating the very purpose of having one.
Why Reviewing Your Will Regularly is So Important
“We get so busy in life that we forget to take the time to pause and review the plan we may have made long ago, and whether it’s as effective or is still relevant or not.” Regularly reviewing your will (ideally with a will lawyer) ensures it keeps up with your life.
As a rule of thumb, perform a will review every 3–5 years, even if you haven’t experienced a major life event. A periodic check-in will help confirm that your will still reflects your current wishes.
An outdated will can inadvertently leave out new family members, such as grandchildren born after the will was written.
It’s not just wills, you should also keep beneficiary designations up to date. Many assets, such as life insurance policies, RRSPs/RRIFs, TFSAs, and pensions, may pass outside your will. Depending on the wording of your will, these may pass on directly to the beneficiaries you designated.
Those designations override what’s in your will for those particular assets unless addressed in your Will. This means if you named someone years ago and forgot to change it, they could still receive that asset even if your will says otherwise.
“If, for instance, you forget to update the beneficiaries on your life insurance after a divorce, your ex-spouse may still get the payout if you have them listed as your beneficiary,” warns Harshdeep.
In grey areas, such as during separation (but before a separation agreement or divorce is finalized), estate planning becomes all the more complex. It’s important to work with trusted advisors who can advise you on the implications of all the documents that give effect to your plan.
9 Life Changes After Which You Should Update Your Will
Caption: Not having a will has the same disruptive impact whether your assets are large or small; Angus Reid Institute
Aside from routine periodic reviews, certain major life events absolutely require you to update (or at least review) your will. This is by no means an exhaustive list, but it includes common life many Albertans live through.
- You’ve Changed Your Mind
It’s natural that your intentions change over time, and you should update your will to align with your wishes. Perhaps you’ve had a change of heart about who should inherit certain assets, or you no longer trust the person you named as executor, or you simply want to adjust how your estate is divided.
- Charity/Donation
Wills are a common way to leave donations or bequests to charity. Anytime you decide to add or remove a charitable bequest, update your will so it clearly reflects that intent. Similarly, if you planned a donation for tax planning reasons and tax laws change, you’ll want to adjust accordingly.
- Tax Planning
Tax laws–federal and provincial–change frequently and can silently impact the tax implications of your estate planning. For example, changes to Alberta’s capital gains tax in 2024. While they may not directly affect the estate, they can have a significant impact on how much your beneficiaries receive.
“What may have been an effective strategy to minimize fees for the estate and tax liabilities on beneficiaries can fall out of its sweet spot over time.” New estate planning techniques to save taxes can evolve, such as setting up trusts, altering how assets with capital gains are distributed, and using charitable donations for tax credits.
Incorporating these into your will may require re-drafting some clauses. Always consult with your will and estate planning lawyer and a tax professional when updating your will for tax planning reasons.
- Changes in Family Life
Changes to personal circumstances are among the most common reasons for updating the will. In Alberta, getting married or entering a common-law (or adult interdependent relationship) no longer revokes an existing will automatically, which means your spouse could be unintentionally left out if your will isn’t updated. Similarly, separation does not automatically remove an ex-spouse from your will.
Births and adoptions also call for updates, especially to appoint guardians or include them as beneficiaries. If someone named in your will dies or experiences major life changes (such as developing special needs or becoming financially independent), you may need to adjust distributions or responsibilities accordingly.
Caption: Why Canadians don’t have or don’t update their wills regularly; Angus Reid Institute
- Changes in Your Beneficiaries’ Lives
If a beneficiary develops a serious illness or disability, you might want to create a trust or other provision for them rather than giving a lump sum outright.
For instance, if a beneficiary has shown they are irresponsible with money, you might alter the terms to protect the inheritance (again, maybe via a trust or staggered distribution).
- Executors/Administrators No Longer Able to Administer Will
The people you appointed as executor (personal representative) or trustee in your will play a crucial role in carrying out your wishes. Over time, you should consider whether those individuals are still willing, able, and trustworthy to serve.
Don’t assume an executor from 20 years ago will still be the best choice now.
- Major Changes in Your Financial Situation
Source: Unsplash
An old will likely will not account for new assets, such as if you bought a vacation home. Or if you now have a business, do you want to set up a succession plan for it in your will? On the other hand, you may have previously left specific gifts that no longer exist.
Update your will to avoid confusion and disappointed expectations.
- You Are Experiencing Significant Changes in Your Health
If you have a condition that could affect your mental capacity in the future, it’s critical to update your will while you are still of sound mind and legally capable of doing so.
You can only make and change wills while you have capacity.
So, updating after a health diagnosis ensures your estate plans are locked in according to your wishes. Conditions such as rapidly progressive dementia can impact your health in weeks, potentially depriving you of the opportunity to update your will.
A change in health can alter your priorities. It’s not uncommon for people to decide to provide more for a spouse or child who takes care of them.
It is advisable that you consult with your lawyer about any estate plan revisions if you have experienced changes in your health. They’ll be able to advise you on the interaction of the will with other documents–powers of attorney and personal directives. Moreover, working with an independent lawyer can lend credence to your update in case questions about mental capacity arise after your passing.
- Major Changes in the Law
If your will was made under old assumptions (like assuming a new marriage would cancel it), you need to update it in light of the new law. Not all legal and tax changes make waves in the media and can catch you unaware.
Even if you don’t intend to make any changes, it’s prudent to discuss your will with a lawyer to ensure it’s able to convey your intentions effectively.
Here’s How You Can Update Your Will
Source: Unsplash
So, you’ve decided to update your will. How can you achieve that, and how should you go about it?
Make a Codicil
A codicil is a legal document used to make a minor amendment to your will without re-writing the whole thing. It’s like an appendix that, once signed and witnessed properly, becomes part of your will.
- Ideal for small, simple changes
- Just states the modifications
- Must follow the same formalities as a will
Make a New Will
Re-drafting your will essentially replaces the old one with a new document. When you make a new will, you will include a clause that revokes all previous wills and codicils, ensuring the old terms don’t cause confusion.
- Ideal if you’re making significant revisions
- Keeps the will concise and straightforward
- Minimizes the risk of error compared to a codicil
It can’t be stressed enough: do not attempt to modify your will or attach a codicil on your own. An improperly executed codicil or will could be invalid, which can leave your estate in disarray.
Make Sure You Work with a Lawyer
It’s really simple–estate law is complex. Any mistakes or missteps in estate planning through a will or codicil will most likely come to light after you have passed, by which time your estate may have been distributed contrary to your wishes.
While working with a lawyer may seem like an unnecessary expense, it is the most foolproof way of preparing and managing a will.
- A lawyer will ensure your changes meet all legal formalities
- You’ll have the peace of mind that the will appropriately effects your wishes
- You’ll receive guidance and advice from an experienced professional
- In case of any capacity disputes, your lawyer can provide testimony defending your capacity
- Your lawyer can advise you of any major legal or tax changes that impact your will
Most of all, a lawyer can make estate planning that much easier. Be it for small or large estates, any tweaks to the will should be considered against the wider impact they may have on the distribution of assets.
To discuss changes to your will or if you are making a will for the first time, book a free consultation.