Ensure your will or estate plan remains current with these 3 crucial reasons.

• It is advised to review your will and other end-of-life documents periodically, typically every few years, although there may be circumstances that require more frequent reviews.
• Despite the pandemic increasing interest in estate planning, over half of U.S. adults still lack a will.
• Here are some important parts of your estate plan that should be reviewed.

Remember to frequently review your estate-planning documents, including your will, to ensure they are up-to-date and accurate.

It is advised to periodically review end-of-life legal documents, such as wills and trusts, unless there are specific circumstances that require more frequent reviews. Events like marriage, divorce, the birth or adoption of a child, receiving an inheritance or lottery win, or moving to a state with different estate laws should prompt a review.

Nick Foulks, who oversees client engagement at Great Waters Financial in Minneapolis, stated that one of the main considerations for a review is when there’s a major change in your life.

An interest rate hike can be prepared for by following these steps.

Estate planning, including a will and other legal documents, has seen increased interest due to the pandemic. Specifically, 18- to 34-year-olds are now 16% more likely to have a will than people in the 35-to-54 age group, according to Caring.com research. In the 25-to-40 age group, only 32% have a will, as found in a survey from TrustandWill.com and 1Password.com.

A 2021 Gallup poll revealed that less than half of U.S. adults have a will.

If you have a will or an estate plan, it's important to review it regularly.

People and situations change

While your will primarily reflects your desires, it's crucial to assess who you've designated as executor to ensure your wishes are carried out.

The executor of an estate typically handles tasks such as liquidating accounts, ensuring assets go to beneficiaries, paying off debts, and selling the home.

I have named a guardian to take care of my children, and I am confident that they will be in good hands with this person.

As part of estate planning, it is common to create documents related to end-of-life issues, such as assigning powers of attorney to trusted individuals to make decisions on your behalf if you become incapacitated.

It is common for the individual responsible for making healthcare decisions to be different from the one chosen to manage financial matters. Therefore, it is crucial to review both options carefully.

Even if you haven't experienced any significant life changes, you may need to reevaluate the individuals you've assigned certain responsibilities to and consider new options.

Account beneficiaries need a review

Retirement accounts, such as 401(k) plans and individual retirement accounts, as well as life insurance policies, are not included in a will.

Generally, the beneficiary named on those accounts will receive the money, regardless of what your will states.

Foulks stated, "We've witnessed accounts being left to an ex-spouse, resulting in the family having to undergo a court process in an attempt to retrieve it."

Unless your spouse legally agrees otherwise, your 401(k) plan requires them to be the beneficiary.

Your bank can provide payable-on-death forms for regular bank accounts to list beneficiaries.

If there is no beneficiary for non-will items or the named person has passed away without a contingent beneficiary, the assets will go into probate. This process involves paying off debts and distributing the remaining assets to heirs, which can take several months to a year or more depending on state laws and the complexity of the estate.

To ensure that your home is titled correctly and protects you from potential creditors or tax implications, it's important to understand the applicable laws and considerations in your state.

You may need to consider a trust

To ensure that your kids receive money without giving an adult with poor money management or concerning behaviors unfettered access to a sudden windfall, you can create a trust as the beneficiary of a specific asset.

A trust is a legal entity created by documents that holds assets on behalf of your beneficiaries. If you choose to create a trust, your assets will be transferred to the trust rather than directly to your heirs. The trust's distribution of assets is governed by the terms you specify in the trust documents.

According to LegalZoom.com, the cost of setting up a trust with an attorney can range from $1,000 to $1,500 for an individual and $1,200 to $1,500 for a couple. Using online software to do it yourself could cost at least several hundred dollars.