Divorce is challenging. It is emotionally taxing and often leaves a trail of legal paperwork. Amidst the chaos, updating your estate plan might not be at the top of your mind. However, revisiting it after such a significant life change is crucial. Here is how you can ensure your estate plan aligns with your new circumstances.
Revise your will and beneficiaries
First things first, check your will. If your ex-spouse is still a beneficiary, it is time for an update. While many states automatically disinherit an ex-spouse, not all do. Draft a new will that mirrors your present intentions. Equally important is updating the beneficiaries of your assets, including bank accounts, investment portfolios, and life insurance policies. Failing to do so might inadvertently benefit your former spouse.
Appoint new guardians and agents
When minor children are involved, selecting a guardian becomes critical. Divorce alters family dynamics, and an ex-spouse may not be the ideal choice. Consider who will best support and care for your children. Similarly, you must update your power of attorney and health care directives. Many people appoint their spouses for these roles, but post-divorce, it is wise to select someone else. You want someone you trust to manage your financial and health decisions.
Review and update trusts and real estate
Do not neglect trusts and property titles. If your ex-spouse is still a trustee, appoint a new one to ensure your assets are managed according to your wishes. Moreover, retitle any jointly owned real estate to exclude your ex-spouse, if necessary. This action safeguards your property and clarifies ownership.
Encourage family to update their plans
Divorce impacts not only you but also your family. Your parents or siblings might have included your ex-spouse in their estate plans. Urge them to review and update their documents to ensure their intentions are current and reflective of the new family structure.
While updating your estate plan post-divorce might seem daunting, it is straightforward. Utilize online resources for state-specific forms or consult an estate planning attorney. If you are contemplating remarriage, revisiting your estate plan becomes even more crucial, and a prenuptial agreement might be advisable. Remember, although divorce is challenging, updating your estate plan is not necessary. It is a step towards ensuring your future security and peace of mind.
