How Often Should You Update Your Will? Key Factors to Consider for Canadians
A will is not a one-time document—it should evolve alongside your life circumstances. In Canada, it’s recommended to review and potentially update your will every few years or whenever a major life event occurs.
Changes such as marriage, divorce, the birth of a child, a death in the family, or significant shifts in your financial situation can all impact the effectiveness of your current estate plan.
This article explores how often you should update your will and the key factors Canadians should consider to ensure their intentions are properly reflected.
Recommended Frequency for Updating Your Will
The right time to review your will depends on changing personal circumstances and legal standards in Canada. Here are some guidelines.
General Guidelines for Reviewing Your Will
Most estate planners recommend you review your will every two to five years. This timeframe allows you to catch changes in your finances, family situation, or priorities. In some cases, even more frequent reviews are recommended if you face major life events.
Situations that should prompt a review or update include marriage, divorce, birth or adoption of children, significant changes in assets, or the death of a beneficiary or executor. Receiving an inheritance may also require changes to account for new property or wealth. Reviewing your will after any of these events helps ensure it stays current.
Even if none of these events have occurred, it remains wise to check your will regularly. Laws can change over time, and a review ensures your documents comply with current rules.
Legal Best Practices for Updates
Legally updating your will in Canada is not simply a matter of making notes or writing on your copy. Any changes must follow formal procedures to be recognized. You must either create a new will or add a legal document called a codicil, which amends the original will.
If you choose to draft a new will, it should clearly state it replaces any previous versions. All changes must be witnessed properly to be valid under Canadian law. Failing to follow these steps may result in confusion or disputes after your passing.
Consulting a lawyer or a trusted estate professional is strongly recommended when updating your will. Legal professionals can guide you and make sure that every update meets the necessary requirements to be upheld in court.
Potential Consequences of Neglecting Updates
If your will is out-of-date, it may not reflect new relationships, births, or major life changes. This can lead to assets being distributed in a way that you did not intend.
Family disputes can arise if beneficiaries feel the will is unfair or unclear. The legal system may distribute assets according to outdated wishes or, in some cases, in accordance with provincial laws for intestacy. This can delay the estate process and increase costs.
Failing to update your will can also mean missing out on recent changes in tax laws or estate regulations. Keeping your will current helps reduce the risks of conflict, extra expenses, and mismanagement of your estate.
Major Life Events Requiring a Will Update
Certain events have a direct effect on your estate plans.
Marriage or Common-Law Partnership
When you get married or enter into a common-law partnership, your current will might be affected or become invalid in some provinces. Marriage automatically revokes a will in some Canadian jurisdictions, unless the will states that it was made in contemplation of marriage. This can leave your estate without clear instructions.
If you start a common-law relationship, your new partner may gain specific rights to your estate, depending on where you live. Failing to update your will means your wishes might not be followed, leading to possible disputes or legal complications. Updating your will after marriage or starting a partnership helps you name your spouse as a beneficiary or adjust bequests to fit your new family structure.
Birth or Adoption of Children
Welcoming a new child, either by birth or adoption, is a major reason to update your will. You can name a guardian for your child in the event of your death, ensuring someone you trust will care for them. This is especially important if your children are minors.
An updated will lets you add your new child as a beneficiary. You can also set up trusts for their education and financial needs, protecting their future. If you do not update your will, your new child may not receive anything from your estate, or there may be confusion over who should look after them.
Divorce or Separation
A divorce or legal separation can change your legal obligations and affect your will. In many Canadian provinces, divorce may revoke gifts made to your former spouse and their appointment as executor. However, separation alone might not change your will's terms.
It’s important to revise your will after a divorce or separation to remove your ex-spouse as a beneficiary or executor if that matches your new wishes. Failing to do so may result in unintended benefits for your ex, potential conflicts, or legal challenges from other family members.
Death of a Beneficiary or Executor
If a beneficiary or executor named in your will passes away before you, your will may not work as you intended. The assets meant for the deceased beneficiary could go to someone you did not choose, or the executor role might go unfilled, causing delays in estate administration.
Updating your will lets you select new beneficiaries or executors and avoid complications in managing your estate. You can also name alternate choices in case your first picks are unable to serve, which keeps your estate plan clear and effective. Regularly checking that your chosen people are still able and willing to serve is essential for a valid will.
Changes in Assets or Financial Situation
Major changes in your finances can impact how your estate will be managed and distributed.
Significant Increase or Decrease in Assets
If you receive a large sum of money, such as an inheritance, bonus, or lottery win, your estate plan may no longer match your current wealth. It is important to update your will when you experience a sudden gain in assets like these.
A serious decrease in assets also matters. For example, if you lose money due to debts, business loss, or an economic downturn, some bequests in your will might no longer make sense. Beneficiaries expecting certain amounts may not receive what you originally planned.
Review your will soon after any large change in assets. Updating your estate plan helps you avoid conflicts among beneficiaries and reduces the risk of legal challenges. Many legal experts recommend this approach to keep your will accurate and effective.
Acquisition or Sale of Property
Buying a new home, cottage, or piece of land changes the assets in your estate. If you buy property, update your will to include the new asset and decide who should inherit it.
Selling real estate means your will may still mention property you no longer own. If you want to give another asset or money instead, it needs to be stated clearly to avoid confusion.
For property outside Canada, there may be special legal or tax considerations. It is important to discuss international assets with a lawyer. Timely updates to your will prevent misunderstandings among beneficiaries.
Changes in Investments or Business Ownership
Significant changes in investments, such as purchasing stocks, mutual funds, or other securities, should also prompt an update. If you start or sell a business, your estate plan needs to reflect who will handle these assets or receive the proceeds after your death.
If your business has grown or taken on new partners, you may want to include details about succession or buyout arrangements in your will. These instructions can prevent disputes among heirs and business associates.
It is also helpful to keep a list of major investments as part of your estate plan. This helps executors locate and distribute your assets smoothly.
Adjustments Due to Legislative or Tax Changes
Changes in laws and tax regulations can directly affect the validity and effectiveness of your will. Reviewing legal updates helps make sure your estate plan follows the current rules and avoids unexpected issues.
Updates in Provincial or Federal Inheritance Laws
Inheritance laws in Canada may differ between provinces, and both federal and provincial rules can change over time. For example, a province might update rules on who qualifies as a dependent, or how property is divided if you do not have a spouse.
If you move to a different province, your will may not meet that province’s legal requirements. This could impact whether your will is followed as you intended. Updating your will ensures that your wishes are legally valid and your loved ones are protected.
Significant legal updates—such as changes to laws about same-sex spouses, blended families, or common-law partners—can also affect who is recognized as a beneficiary. You should review your will with a legal professional when such changes occur. This helps you adapt to new legal definitions and requirements.
Impact of New Tax Regulations
Tax laws are subject to change at both the federal and provincial level. New regulations can influence the taxation on your estate, the value received by beneficiaries, and the process of transferring assets after death.
For example, a new tax law might increase the tax rate on certain types of investments or change the rules for tax-free rollovers between spouses. Ignoring these changes could result in higher taxes on your estate or unintended tax consequences for your heirs.
Review your will when significant tax law changes are announced. Keeping your estate plan current can help you reduce tax exposure and take advantage of available exemptions.
Selecting or Replacing Executors and Guardians
Choosing the right executor and guardians is essential. These roles directly affect how your estate is managed and how your children are cared for if something happens to you.
Appointment of a New Executor
An executor is responsible for carrying out the instructions in your will. You should select someone trustworthy, organized, and willing to take on the duties involved. If your current executor can no longer serve, becomes unsuitable, or is unwilling to continue, you should update your will promptly.
Common reasons to replace an executor include life changes such as your executor's health problems, moving to another province, or a change in relationship status. It is also important to review your will if your chosen executor passes away or becomes legally unable to act.
You are not required to ask your executor for permission to make a change. However, it is best practice to inform your executor of any updates, so they are aware of your wishes and the location of the latest will.
Naming Guardians for Minor Children
If you have children under the age of 18, your will should state who you want to act as their guardian if you die. Select someone with similar values and the ability to care for your children’s emotional and financial needs. This could be a sibling, parent, or a trusted friend.
You should update your will if there are significant changes in your family, such as births, divorces, or if a current guardian is no longer able to take on the role. If you do not name a guardian or the named guardian cannot act, the court will decide who becomes responsible for your children.
List anyone you do not want as a guardian if relevant. Providing clear instructions gives your children protection and stability.
Reviewing and Updating Beneficiaries
Beneficiaries are the people or groups who will receive your assets when you pass away. Changes in family, relationships, or personal wishes can make it necessary to review who you have named in your will and what you have chosen to leave them.
Adding or Removing Beneficiaries
You should consider adding or removing beneficiaries when there are important changes in your life, such as marriage, divorce, the birth of a child, or the death of someone named in your will. If a beneficiary’s situation changes, for example, if they become financially independent or develop special needs, you may want to update their share or role. Regularly reviewing who will inherit your estate ensures your assets go to the right people. If you decide to remove someone, make sure you clearly state this in your will to avoid confusion or possible legal disputes.
It is also important to keep in mind any changes to laws that could affect how and to whom your estate is given.
Updating Specific Bequests
Specific bequests are gifts of certain items or sums of money that you leave to individuals or charities. You should update these if you buy, sell, or lose valuables, or if you wish to give new gifts to someone different. For example, you may want to leave new personal belongings, a new home, or a family heirloom to a child or friend. If an item named in your will no longer exists, be sure to change your will to avoid confusion for your executor.
Charitable giving can also change over time, so review your will if your choices about donating have changed. Consider listing the current full names and addresses of your beneficiaries to avoid misunderstanding or delay in distributing specific gifts. Keeping your bequests up to date helps make sure your exact wishes are followed.
Periodic Will Review and Maintenance
Regular reviews of your will are important to keep it up to date with your current wishes and legal requirements. Legal professionals suggest reviewing your will every three to five years, even if you have not experienced major life changes. This allows you to adjust your will if your personal or financial circumstances have changed.
Key points to consider during a periodic review include:
Changes to your assets, such as buying or selling property
Changes in your family, like marriage, divorce, or the birth of children
Updates in executor or guardian choices
Any legislative changes that could impact your estate plan
A simple checklist can be helpful:
If you find differences between your current wishes and what your will states, it may be time to make updates. Writing on your will after signing does not always make changes valid. Specific steps must be followed to ensure any updates are recognized legally.
Professional Assistance in Will Updates
Getting help from a legal professional can make updating your will much easier. Lawyers and estate planners have the experience to make sure your new wishes are clear and properly recorded. This can help you avoid mistakes that may cause problems for your family later.
You do not have to guess about legal paperwork if you use a professional. They can explain the steps and guide you through every change.
Some reasons to work with a professional when updating your will include:
Understanding new laws and rules about estates.
Making sure all your assets and beneficiaries are listed.
Avoiding unclear or confusing language.
Properly signing and witnessing updates, such as with a codicil.
A lawyer can also discuss the benefits and limits of tools like codicils versus writing a new will. Codicils are short documents that let you make simple updates to your existing will, but you may need a new will if you have many changes or complicated wishes.
The Final Verdict
Regularly reviewing and updating your will is essential to ensure it reflects your current wishes, relationships, and financial circumstances. Making timely updates helps avoid confusion, prevent disputes, and ensure your estate is distributed according to your intentions.
For professional assistance with reviewing or updating your will, contact the lawyers at Parr Business Law. Our team is here to help you maintain a clear, current, and legally sound estate plan at every stage of life.
