Divorce is challenging, and revisiting your estate plan might feel like an additional burden. However, it is crucial to reassess your legal documents after significant life changes, including divorce. This ensures your assets and wishes are protected and aligned with your new circumstances.
Create a new will
After divorce, your existing will might not reflect your current wishes. If your ex-spouse is a beneficiary, it is essential to update this. Many states treat an ex-spouse as if they predeceased you, preventing them from inheriting. However, not all states follow this rule. Therefore, drafting a new will is necessary. Choose new beneficiaries who you want to inherit your assets.
Update guardianship and power of attorney
If you have minor children, designate guardians who will care for them if you pass away. While your ex-spouse might be the default guardian, it is wise to plan for other contingencies. Name a trusted individual who can provide for their needs in unforeseen circumstances.
Additionally, review your power of attorney and healthcare proxy. If your ex-spouse holds these roles, consider appointing someone else. This change ensures that someone you trust and who aligns with your current intentions makes financial and healthcare decisions.
Revise beneficiary designations
Accounts such as bank accounts, retirement funds, and life insurance policies transfer through beneficiary designations, not your will. After a divorce, verify and update these designations to prevent your ex-spouse from inheriting unintentionally. Contact financial institutions to request the necessary forms and make these changes.
Communicate with family members
Your family might have named your ex-spouse in their estate plans. Encourage them to review and update their documents. This step avoids unintended roles or benefits going to your ex-spouse, ensuring their estate plans reflect their current wishes.
Updating your estate plan post-divorce does not have to be complicated. You can consult with an estate planning attorney for guidance. If you are considering remarriage, it is also beneficial to discuss prenuptial agreements to protect your assets further.
By taking these proactive steps, you safeguard your future and that of your loved ones. Estate planning after divorce may seem overwhelming, but it is an essential part of moving forward and securing peace of mind.