Putting together your estate plan gives you the opportunity to dictate what you want to happen to your assets after you die. But many people have yet to create their estate plan and make a plan for the future.
According to a survey conducted by Caring.com, only 4 out of 10 Americans have a living will or trust. Although creating these documents is a good place to start, there may come a time when you need to update certain facets of your estate plan.
1. You got married or divorced
If you get married, you should revise your estate plan so that it includes your new spouse. Likewise, if you get divorced, you should revisit your estate plan, so your documentation does not include your ex.
2. You became a parent
Creating a will allows you to name a legal guardian for any minor children as well as including them as beneficiaries. Every time you have a new baby or adopt, you should update your estate plan accordingly.
3. You experienced changes in wealth
If you experience a major change to your personal wealth, you should update your estate planning documents. For example, if you started a business or received an inheritance, you should include these wealth changes in your estate plan.
In addition to looking at your estate plan when you experience certain life changes, you should plan on reviewing your documents approximately once every year. Keep your estate planning documents in a safe, accessible place where you can get to them easily.