Divorce marks a significant life change. Once the dust settles, revisiting your estate plan becomes crucial. It is easy to overlook this task amidst the whirlwind of legal proceedings, but updating your estate plan ensures your assets are managed according to your wishes.
Update your will after divorce
Start by creating a new will. If you name your ex-spouse as a beneficiary, some states treat them as if they predeceased you. However, this is not universal. You can specify current beneficiaries who will inherit your assets by drafting a new will. This step ensures your property goes to loved ones of your choice.
Update guardianship for minor children
If you have minor children, consider who should become their guardian if anything happens to you. Typically, your ex-spouse would take custody. But what if they pass away before you? Designate a guardian who will meet your children’s needs, covering education, healthcare, and daily living.
Change power of attorney and health care directives
During marriage, you might have named your spouse your power of attorney or health care agent. Post-divorce, these roles often need reassessment. Some states automatically disqualify ex-spouses, but it is best to appoint someone new. This way, you control who makes decisions about your finances and health care if you are unable.
Check beneficiary designations
Many assets transfer directly to named beneficiaries, bypassing your will. Review and update beneficiary designations on all financial accounts and insurance policies. This includes bank accounts, retirement plans, and life insurance. Without updates, your ex-spouse might still receive these benefits.
Your family members might have included your ex-spouse in their estate plans. Encourage them to review their documents and make necessary changes. This ensures their wishes align with current circumstances. Consulting an experienced attorney can provide valuable guidance and ensure your estate plan is legally sound and aligned with your intentions.
Updating your estate plan does not have to be daunting. You can use online resources for state-specific forms or consult an estate planning attorney. Taking these steps secures your future and provides peace of mind. If you plan to remarry, consider a prenuptial agreement to protect your assets.
Divorce is challenging, but addressing these estate planning tasks is vital. You safeguard your wishes and protect your loved ones by taking proactive steps.
