Divorce brings significant life changes, and updating your estate plan should be a priority. As you adjust to your new circumstances, it is crucial to address estate planning issues. Here are key steps to consider.
Revise your will and beneficiary designations
Your divorce impacts your will and beneficiaries. If your ex-spouse is listed as a beneficiary, update your will. While some state laws prevent ex-spouses from inheriting, it is best to create a new will. Clearly designate who will inherit your assets.
Review and update beneficiary designations on accounts like life insurance, pensions, and IRAs. If you do not, these assets may unintentionally go to your ex-spouse. Contact financial institutions to change these designations.
Update guardianship and power of attorney
If you have minor children, you need to update guardianship arrangements. Choose someone you trust to care for your children if you pass away. Your ex-spouse may gain custody, but it is important to have an alternate guardian.
Change your power of attorney and health care directives. During marriage, your spouse may have been your agent. Create new documents naming someone else for financial and health decisions. You want someone reliable to manage these aspects of your life.
Review family estate plans
Ensure your family’s estate plans align with current wishes. Your parents or relatives might have named your ex-spouse as a fiduciary or beneficiary. Encourage them to update their documents to reflect their intentions.
Updating estate plans after divorce is straightforward. You can consult an estate planning attorney. This step is crucial for safeguarding your assets and ensuring your wishes are honored.
Divorce is challenging, but these estate planning moves are vital. Acting now prevents complications later. If you plan to remarry, consider a prenuptial agreement and review your estate plan again. Consult legal professionals for guidance tailored to your situation. Estate planning ensures your financial security and peace of mind.