A will is a legal document that outlines how to distribute your assets after you pass away, and if you have minor children, it gives you the opportunity to name a guardian. A will is the foundation of an estate plan, but many people have yet to create one of these legal documents.
According to CNBC, approximately 67% of people in the U.S. have put together an estate plan. If you already have a will, there are certain situations in your life where you should revisit and update this document.
A change to your personal wealth
If you experience an unexpected windfall, there are estate tax considerations that may come into play. A change in your wealth may also prompt you to change your beneficiaries. Use this as an opportunity to look at your estate plan and update your will.
A change to your family
If you bring a new child into your family either through birth or adoption, you should update your will. Not only should you update the way to distribute your assets, but you will also want to name a legal guardian for the new child.
A change to your marital status
Getting married or divorced should prompt you to change your will. If for example, you do not change your will after you get divorced, your assets could still go to your former spouse when you die.
Ultimately, your will should not remain a stagnant document. Look it over approximately once a year and make changes to it as your life evolves from year to year.