How Life Changes Affect Your Estate Plan
While Wills may not be the first thing we associate with personal relationships, your relationship status plays a critical role in how your estate is managed. From marriage to divorce and everything in between, each phase of your personal life can directly impact your Will. Staying informed and updating your estate plan accordingly is essential for safeguarding your assets and ensuring your intentions are honoured.
De facto Relationship
Entering a de facto relationship doesn’t have the same immediate legal impact on your Will as marriage. However, over time, your de facto partner may acquire rights to your property that could conflict with the instructions in your Will. If your Will isn’t updated to reflect your new relationship status, your de facto partner may make a claim against your estate for further provision from your estate after your death, especially if they believe they’ve been unfairly excluded or inadequately provided for.
Marriage
Marriage typically revokes any Wills made prior to the marriage, unless one of the following exceptions apply:
1. The Will is made ‘in contemplation’ of the marriage; and
2. Provision made under the Will to the new spouse is not revoked.
Revocation of a Will, means that the person dies ‘intestate’. The rules of intestacy will then determine how an estate is to be distributed which may have unintended consequences.
Separation
Although it’s often overlooked during separation, revising your Will to reflect your changed circumstances is a vital part of protecting your estate and intentions.
The period between separation and the finalisation of a divorce is one of the most crucial times to review and update your estate plan. If you pass away during this time without updating your Will, your estranged spouse may still inherit any assets you previously left to them and could remain as the appointed executor, even if that no longer reflects your wishes. Finalising a property settlement without formally divorcing is also not enough to revoke an earlier Will. To ensure your estate is distributed according to your current intentions, a new Will must be made.
Divorce
In NSW, the effect of divorce on your Will revokes any gift or appointment to an ex-spouse. Essentially, the rest of your Will remains valid, but your ex-spouse would not be appointed as an executor nor would they receive a gift from your estate. However, if the gift or appointment is made in contemplation of divorce, this is an exception.
Conclusion
It is a good idea to review your Will regularly, particularly when major life changes occur, such as a relationship ending, a new relationship beginning, or the birth of a new child. Entering into a new relationship, marriage, separation and divorce are major life events that could have unintended consequences on your Will. Staying on top of your estate planning during major life changes ensures your Will continues to protect your assets, reflect your wishes, and take care of the people who matter most.
Take the Next Step
If your relationship status has recently changed, or you’re unsure whether your current Will still reflects your wishes – now is the time to act.
Speak to our experienced legal professionals about updating your estate plan to ensure your assets are protected and your loved ones are looked after. Whether your situation is straightforward or more complex, we’re here to help. From simple Wills that cover the basics to more detailed estate plans involving blended families, multiple assets, or unique circumstances, our experienced team can guide you through the process with clarity and confidence
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