Fix Your Estate Plan During Your Divorce

Divorce is a significant life event that impacts many aspects of your life, including your estate plan. Adjusting your estate plan is an essential step in protecting your assets and ensuring your wishes are honored as your personal and financial circumstances change. A lawyer, like a family law lawyer, can attest to the importance of addressing these changes promptly and carefully.

Review Your Will

An estate planning lawyer knows that one of the first documents to revisit is your will. Many people name their spouse as a primary beneficiary or executor, but after a divorce, this may no longer align with your intentions. Consider updating the following aspects:

• Beneficiaries. Remove your former spouse as a beneficiary if you no longer want them to inherit your assets. Instead, you can name other family members, children, or charitable organizations as beneficiaries.
• Executor. If your ex-spouse is listed as the executor of your will, you may want to appoint someone else you trust, such as a sibling, adult child, or trusted friend.
• Guardianship. If you have minor children, confirm or update your choice of a guardian. While your ex-spouse may naturally retain custody, it’s still important to designate a guardian in case both parents become unable to care for the children.

Update Your Power Of Attorney

During marriage, spouses often designate each other as their power of attorney for both financial and healthcare decisions. If this is the case in your estate plan, you’ll likely want to change these designations.

• Financial power of attorney. Assign someone you trust to manage your financial affairs if you are unable to do so.
• Healthcare power of attorney. Choose someone who understands your healthcare preferences and will act in your best interest.

Updating these documents ensures that someone other than your former spouse will make critical decisions on your behalf if needed.

Review Trusts

If you have established any trusts as part of your estate plan, you’ll need to assess their terms and beneficiaries.

• Revocable trusts. These trusts can typically be modified or revoked during your lifetime, allowing you to remove your former spouse as a beneficiary or trustee.
• Irrevocable trusts. These trusts may be more challenging to adjust, depending on their terms. Consult with a qualified attorney to explore your options.

Address Beneficiary Designations

Estate plans often include assets that pass directly to beneficiaries, such as life insurance policies, retirement accounts, and payable-on-death accounts. These designations override the instructions in your will, so it’s crucial to update them after a divorce.

Remove your former spouse as a beneficiary if desired, and consider naming children, other family members, or trusted individuals instead.

Finding Help Through Your Divorce

Reworking your estate plan during a divorce is an important step in protecting your interests and aligning your plans with your new reality. Our friends at Robinson & Hadeed discuss how taking proactive steps to update your documents can provide peace of mind and clarity for you and your loved ones. If you’re going through a divorce, consider working with an experienced attorney to help you make these necessary adjustments. By addressing your estate plan promptly, you can move forward with confidence, knowing that your wishes are properly reflected.