When you and your spouse are finalizing your divorce, there are many things to add to your post-divorce checklist, which can sometimes feel very emotionally and financially overwhelming.
Nevertheless, it is important to complete and/or update your estate plan after your divorce is finalized.
In the past, estate planning was a simple process, but in today’s world, it is a very different, complex process. So many factors can play a part in your planning, from complex financials, blended marriages, multiple marriages and stepchildren.
Each of these situations warrants working with an estate or trust planner who not only understands estate planning but also comprehends how divorce can affect the terms of the estate.
Here are some reasons why to update your estate plan after your divorce has been finalized:
- Your former spouse may have been listed as your financial or medical Power of Attorney (POA)
- If your former spouse is listed as the beneficiary, this needs to be updated to another family member, such as your children or your siblings
- Confirm that the wording in your estate plan aligns with your finalized divorce agreement
- Create a new Will that outlines your wishes – this will help to avoid confusion once you have passed
- Review and update your Revocable Living Trust and Living Will
- Update who the executor will be, along with who the guardian will be for any under-age children
While estate planning may not be something our clients look forward to thinking about, it is a vital step that must be completed. Estate planning will outline your financial wishes and help your friends and family understand how you would like your estate executed and your personal property distributed.
A Better DivorceTM is an interdisciplinary group of professionals committed to non-court, non-confrontational solutions for family law matters.
Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.