Creating a will is a necessary part of putting together your estate plan. This document outlines how you want to distribute your assets after your death and who you want to care for any minor children.
But many people have yet to create a will – a survey conducted by Caring.com estimates only 4 in 10 adults in the U.S. have made this legal document. Not only should you make creating a will a priority, but after you have this document, you should update it when certain life situations arise.
1. When you become a parent
After you become a parent, you should update your will to name a legal guardian. This person will become responsible for your child if you unexpectedly pass away.
2. When you experience changes in wealth
You may have experienced changes in your assets or wealth as the years have passed. When you experience a significant change in your wealth, such as receiving an inheritance, account for this alteration in your will.
3. When you want to change your executor or a beneficiary
You may not want to use the same executor or have the same beneficiaries as when you first made your will. If your circumstances have changed and you want to rename an executor or change the people who receive your assets, revise your will.
Your will is not a stagnant document and will change throughout your life. In addition to altering your will in these circumstances, plan on reviewing this legal document approximately once a year.