The importance of updating your last will and testament

Updating your will: Why it matters

The importance of updating your last will and testament – and revoking any previous versions – cannot be overestimated. It is as much a part of estate planning as having a valid will. 

One of the many reasons to update your last will is to ensure that it mirrors your wishes. Protecting your assets with an updated will is also one way to safeguard your legacy.

When to update your last will and testament 

Having considered the importance of updating your last will and testament, it’s also important to know when to update your last will. A general rule of thumb is to review your will annually. Updating your will is also based on certain key events.

• When you acquire assets.
• When you get married or divorced.
• When you become a parent.
• When you want to change beneficiaries or when a beneficiary dies.
• When your young family member becomes a responsible adult.
• With impending retirement.
• When you buy property in another country or emigrate to another country.

The consequences of not updating your last will and testament

The consequences of not updating your last will and testament can be far-reaching and can extend well beyond your lifetime. This is where the importance of updating your last will and testament comes into play. An outdated will can lead to a cascade of consequences, like the following:

• Your estate might not be distributed according to your current wishes, leaving your loved ones at a disadvantage.
• Changes in relationships or family dynamics might lead to unintended beneficiaries inheriting from your estate, which can result in family feuds and even legal battles
• Outdated wills can lead to legal challenges in estate administration processes, resulting in higher legal fees and delays in asset distribution.

Capitalising on tax-saving opportunities with a current will

Capitalising on tax-saving opportunities with an updated will can profoundly impact the financial well-being of your loved ones. This is where you can truly benefit from the help of specialists like Capital Legacy. Taking advantage of tax-saving opportunities in your will involves considerations related to the following:

• Estate duty: Understand exemptions, deductions, and thresholds to minimise estate taxes.
• Donations tax: Make tax-free gifts within the allowable exemptions and limits to reduce donations tax impact.
• Capital gains tax: Consider exemptions related to the sale of your primary residence.
• Trusts: Use trusts to protect assets with an updated will, reduce taxes, and manage specific aspects of your estate.

In a constantly evolving world, understanding the importance of an updated last will and testament and the assurance provided are what keep your legacy in line with the twists and turns of life. And Capital Legacy is here to help. 

Capital Legacy has already drafted up over 650 000 wills in just over 11 years of existence and saved families millions in the costs associated with dying. 

Contact your Financial Advisor or connect with us today for a complimentary will consultation.