Your will is an essential estate planning document that outlines how you want the court to distribute your property upon your death. Although creating a will is essential, only 4 in 10 people in the U.S. have one of these documents, according to a survey conducted by Caring.com.
Not only should creating a will be a priority, but you should also remember to update it regularly. Here are a few situations that warrant a review of your estate planning documents.
You have a child
After you have a child, your focus during the estate planning process should be on naming a guardian and creating a trust. Make sure your will is flexible enough to accommodate the possibility of adding more children to your family in the future.
You get divorced
Change your will as soon as possible after you get divorced. If you die without changing your will, your former spouse could maintain rights to a portion of your estate.
Your executor or beneficiaries die
If your executor or named beneficiaries in your will die, update this document. You should also make edits to your will if you decide to change your executor or beneficiaries for personal reasons.
Your financial circumstances change
If you inherit money, your annual income changes significantly or you purchase real estate, change your will to reflect your new financial situation. Consider who you want to leave these assets to or consider leaving a legacy by gifting funds to a charitable cause or organization you believe in.