The Importance of Reviewing Your Estate Plan After Major Life Events
An estate plan isn’t something you can set and forget. Your circumstances change, and your estate plan should change with them.
Marriage, separation, divorce, the birth of a child, changes in your finances, health changes, and moving interstate or overseas can all affect your estate plan and the way you want your affairs managed.
Here are some of the key life events that should prompt you to review your estate plan.
1. Marriage or De Facto Partnership
“What happens to my Will if I get married?”
“What happens to my Will if I start a new relationship?”
Getting married is an important time to review your estate plan.
In Queensland, marriage can revoke an existing Will, subject to certain exceptions. One of the key exceptions is where the Will was made in contemplation of the particular marriage, and the Will includes the appropriate wording.
An Enduring Power of Attorney can also be affected by marriage in certain circumstances.
If you’ve started a new relationship, it’s worth reviewing your estate plan even if you’re not getting married. Your new partner may become an important part of your estate planning strategy, particularly if you live together, own assets together, or want them to make decisions for you if you lose capacity.
You should consider whether:
Your Will provides for your new spouse or partner in the way you intend.
The right person is appointed as your executor.
Your Enduring Power of Attorney appoints the person you trust to make decisions for you.
Your superannuation and life insurance nominations reflect your current wishes.
Your overall estate planning strategy works for your particular family circumstances.
Key changes to consider after marriage or entering a new relationship:
Review your Will and Enduring Power of Attorney.
Review your superannuation death benefit nominations.
Review your life insurance beneficiary arrangements.
Consider how jointly owned assets will be dealt with.
Consider how your new relationship affects any existing estate planning structures.
2. Divorce or Separation
“What happens to my Will if I get divorced?”
“What happens to my Will if I separate from my spouse?”
Separation and divorce are two of the most important times to review your estate plan.
In Queensland, separation does not automatically remove your former spouse from your Will or Enduring Power of Attorney.
That means if you separate and then die before your divorce is finalised, your existing Will may still operate, including provisions that benefit your former spouse or appoint them to a role in your estate.
Your Enduring Power of Attorney also needs particular attention. Separation alone does not automatically prevent your former spouse from acting under an existing appointment.
If you no longer want your former spouse making decisions for you or benefiting from your estate, you should obtain legal advice and update your documents as soon as possible.
Divorce has different legal consequences. Once a divorce is finalised, certain provisions in your Will involving your former spouse may be revoked, subject to the applicable Queensland legislation. There can also be additional considerations where you have children together.
Key changes to consider after separation or divorce:
Review and, where appropriate, update your Will.
Review your executor and trustee appointments.
Review your Enduring Power of Attorney.
Review your superannuation death benefit nominations.
Review your life insurance arrangements.
Consider your children’s financial and care arrangements.
Review any trusts, companies, or jointly owned assets affected by the separation.
Don't wait for the divorce to be finalised before reviewing your estate plan.
3. Birth or Adoption of a Child
“What happens to my Will if I have a new baby?”
“Do I need to update my Will when I adopt a child?”
The birth or adoption of a child is a major life and estate planning event.
If you have children under 18, your estate plan should consider both who will care for them and how their inheritance will be managed.
You may want to:
Nominate a testamentary guardian in your Will.
Record your parenting wishes in a Letter of Wishes.
Consider how your children’s inheritance should be managed.
Consider whether a testamentary discretionary trust is appropriate.
Review your superannuation and life insurance arrangements.
Make sure your estate plan works if one or both parents die.
A testamentary discretionary trust can be particularly useful where you want to provide financial support for your children while giving trusted people responsibility for managing their inheritance.
Key changes to consider after the birth or adoption of a child:
Review your Will.
Consider testamentary guardianship.
Consider whether a testamentary discretionary trust is appropriate.
Review your superannuation and life insurance.
Record important parenting directions in your Letter of Wishes.
4. Significant Changes in Financial Circumstances
“What happens to my estate plan if my financial circumstances change?”
Your estate plan should reflect what you own, how you own it, and the people you want to benefit from it.
A significant change in your financial circumstances could include:
Buying or selling a property.
Receiving an inheritance.
Starting or selling a business.
Receiving a significant financial windfall.
Acquiring shares or other investments.
Taking on substantial debt.
Establishing or changing a trust structure.
A change in your assets can affect the strategy behind your estate plan. For example, a testamentary discretionary trust may become more or less appropriate depending on your circumstances, or you may need to reconsider how particular assets will pass to your beneficiaries.
Key changes to consider after a significant financial change:
Review your Will and how your assets are distributed.
Review ownership structures.
Consider whether existing trusts or other structures still achieve your objectives.
Review superannuation and life insurance.
Obtain financial or tax advice where appropriate.
5. Significant Health Changes
“What happens to my estate plan if I become seriously ill?”
A significant change in your health is another reason to review your estate plan.
This is particularly important if you’ve been diagnosed with a serious illness, experienced a significant injury, or your circumstances have changed in a way that could affect your ability to make decisions in the future.
Your Enduring Power of Attorney and Advance Health Directive are particularly important here.
An Enduring Power of Attorney allows you to appoint someone you trust to make financial and personal, including health, decisions on your behalf in circumstances where they have authority to do so.
An Advance Health Directive allows you to make decisions about your future healthcare while you have capacity. It can provide clear directions about the treatment you would or would not want if you later become unable to make those decisions yourself.
Your Will should also be reviewed if your health circumstances have changed, particularly if you want to reconsider who you provide for or whether your existing estate planning strategy remains appropriate.
Where financial or superannuation strategies may also be relevant to your circumstances, you should obtain appropriate financial advice.
Key changes to consider after significant health changes:
Review your Enduring Power of Attorney.
Review your Advance Health Directive.
Review your Will and overall estate planning strategy.
Consider whether your arrangements for children or dependants still work.
Review your Letter of Wishes where your circumstances or wishes have changed.
6. Moving to Interstate or Overseas
“Does my Will still work if I move?”
Moving to another state or country can be another reason to review your estate plan.
Estate planning laws differ between Australian states and territories, and the position can be even more complicated if you move overseas or acquire assets in another country.
You should obtain legal advice about your estate plan when you move, particularly if:
You establish a permanent home in another jurisdiction.
You acquire property overseas.
You establish bank accounts or investments overseas.
Your business interests change.
Your family circumstances change at the same time.
Key changes to consider after moving:
Review your Will and other estate planning documents.
Consider whether your documents remain appropriate in your new jurisdiction.
Review property ownership and other significant assets.
Obtain appropriate advice about overseas assets or tax considerations.
Estate Planning is an Ongoing Process
Your estate plan should reflect your life as it is now.
That means reviewing it when something significant changes, rather than waiting until something goes wrong.
As a general rule, we recommend reviewing your estate plan about every five years, even if nothing major has changed. A review can also give you the opportunity to check that the people you've appointed are still the right people, your assets and structures are still as you remember them, and your strategy still reflects what matters to you.
At Sun Wills & Estates, we help you review your estate plan, identify what has changed, and work through what needs to be updated.
If you’ve recently experienced a major life event, or it’s been a few years since you last looked at your estate plan, it may be time for a review.
Ready to review your estate plan? Book our heart-to-heart initial consult through our online calendar and choose a time that suits you.