The High Price of Delay: Why an Outdated Will Could Cost Your Loved Ones Dearly

When it comes to estate planning, one of the most common, and costly, mistakes people make is failing to update their will. A will is not a “set and forget” document. Life changes, and when your will doesn’t keep up, the consequences can be emotionally draining, legally complex, and financially devastating for the people you care about most.

A Case in Point: Petrovska v Morrison [2021] VSC 153

In one stark example, the Victorian Supreme Court case Petrovska v Morrison highlights just how much damage an outdated will can cause.

James Finnie died in 2017, leaving behind a will that failed to reflect the reality of his life at the time of his death, most notably, his 20year de facto relationship with Violetta Petrovska. His will, written 25 years before his death, made no provision for her, prompting Petrovska to bring a family provision claim against the estate.

The litigation lasted four years, involving significant legalfees, emotional distress, and delays in distributing the estate. The Courtultimately ruled in Petrovska’s favour, acknowledging her financial dependenceand long-term relationship with the deceased, a relationship that was formedafter the drafting of will, and awarding her forty percent of the estate.

The case is a textbook example of what can go wrong when wills are not kept current. Not only was the deceased’s intended distribution of assets contested, but it also burdened his loved ones with years of avoidable litigation.

When Should You Update Your Will?

Reviewing your estate planning documents annually is a smart starting point. This doesn't need to be done with the assistance of a solicitor, it can be done as a personal reflection on whether the document still indicates your intentions.

However, there are specific life events that absolutely should trigger a formal review with a solicitor:

1. Change in Relationship Status

• Marriage: In many Australian states, marriage can revoke an existing will unless it   expressly states otherwise.
• Separation: Separation doesn’t revoke your will, so it’s important to update it. Your ex-partner  may no longer be the best choice as executor or main beneficiary.
• Divorce: This may partially or fully revoke your will or enduring power of  attorney.

2. New Family Members

• The birth or adoption of children or grandchildren should prompt a review to ensure they are adequately provided for.
• Conversely, estrangement from family members may lead you to alter existing provisions.

3. Changes to Assets or Financial Structures

• Acquiring new property, businesses, or large sums of  money.
• Creating trusts, companies, or self-managed super funds each of these can have implications for your estate.

4. Changes in Name

• If you or someone named in your will (executor or beneficiary) changes their name.

5. Deaths or Loss of Capacity

• If a nominated guardian, executor, or beneficiary dies or can no longer fulfil their role.