The new year presents an opportunity for change; people are eager to set new year resolutions to aid personal and professional development. Though, it’s easy to overlook an important task: updating your will.
It’s advisable to review your will regularly, ideally every five years or after a significant event.
If it’s been a while since you updated your will or if 2024 brought significant changes to your life, now might be the perfect time to ensure your will aligns with your current wishes.
When to update your will
In addition to regular updates and reviews, several circumstances necessitate updating your Will to reflect changes in your family situation and estate:
Regularly reviewing your Will ensures it accurately represents your current wishes and circumstances.
Updating your will
There are generally two ways to update your Will, depending on the changes you need to make:
When writing a new Will or updating an existing one, it is crucial to have it properly witnessed and signed. If not, it may be considered invalid, and your estate might not be distributed according to your wishes.
Important recent changes
One of the notable changes to the UK tax code from the recent Budget involves updates to the Inheritance Tax (IHT) law.
Starting in April 2027, unspent pension pots will fall under the scope of IHT. This means that individuals who plan to use their pensions as a tax-efficient method to pass on money may need to rethink this strategy and possibly consider gifting instead.
Additionally, beginning in April 2026, Agricultural Property Relief will undergo reforms. Farms passed on will receive 100 per cent relief for the first £1 million of combined assets, and 50 per cent relief for any additional assets.
For advice on updating your Will in the new year, please contact our team.
