An estate plan can help you plan for the future and ensure your assets get distributed according to your wishes after you die. But many people have yet to put one of these plans together.
According to a survey conducted by Caring.com, only 33% of Americans have put together an estate plan. Even if you are one of the few who have an estate plan, you should update and review your plan regularly, especially if you experience any of the following life situations.
1. Marriage or divorce
If you recently got married or divorced, make changes to your will and other estate planning documents to reflect this life change. If, for example, you do not update your will after you get divorced, your assets could go to your ex following your death.
2. Beneficiary changes
If you decide that you want to alter your beneficiaries after you create your estate plan, look over your will and all other related documents. If any of your beneficiaries pass away before you, make sure you update your estate plan to reflect this as well.
3. The addition of more children
One of the most important parts of estate planning if you have children involves designating a legal guardian. Review your guardianship plans every time you add a new child to your family.
Even if you do not experience a major life change, you should still review your estate plan regularly. Generally speaking, you should look over your estate plan on an annual basis to make sure it reflects your wishes.