| Your will may be the most important document you'll ever create.
Many people, however, either didn't get or read the memo. It's shocking, but about 68% of Americans do not even have a will.
So, if you do have will or some sort of estate plan, kudos to you, because you are way ahead of many others when it comes to planning. But please don't get too full of yourself and start to pat yourself on the back. Here's why: After many of us draft that all-important will, we put it somewhere for safekeeping and don't look at it again. Setting it and forgetting it is a big mistake.
Life changes and financial changes should prompt people to review their wills to make sure the documents are still consistent with their current life situations and also align with their wishes after their death.
Here are some life changes that should push you to update your will: You've moved to another city/state. You bought a second home. A charitable relationship you have has changed. Your financial situation or the value of your assets have changed. One of your children has now become your primary caregiver. A beneficiary listed in your will has died. You have new grandchildren that were not in the original will.
Even without any significant life changes, it's advisable to review your will every five years or so, ensuring your current wishes are reflected. It's also a good idea to check for any recent changes to the law that may affect your will.
As for those without a will, what exactly are you waiting for?
If you die without leaving a valid will, it means you die intestate. If that happens, you'll leave your family with no personal instructions. They'll have to go through a probate process to work out who owns what or who has to take care of your estate's liabilities. It's long and costly, which is not something any family wants to deal with after a death.
For more stuff like this, be sure to visit CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. |
EmoticonEmoticon