Divorce is a challenging life transition that often brings significant emotional and legal changes. Amidst the upheaval, updating your estate plan might not be top of mind, yet it is crucial. Life events such as divorce necessitate a review of your estate documents to ensure they reflect your current wishes and protect your interests.
Make a new will
After a divorce, it is essential to revisit your will. You might need to update your beneficiaries if you previously included your ex-spouse. Creating a new will allows you to clearly designate beneficiaries who align with your current intentions. This ensures your assets and property go to the individuals you choose, rather than defaulting to outdated designations.
Update guardianship for minor children
If you have minor children, it is important to update your guardianship preferences. Typically, your surviving spouse would gain custody if you pass away, but circumstances can change. Designate a guardian who can provide for your children’s support, maintenance, education, and health care if needed.
Revise power of attorney and health care directives
During marriage, it is common to appoint a spouse as your agent for financial and health care decisions. Post-divorce, you may not want your ex-spouse to maintain this authority. Some states automatically disqualify ex-spouses as agents, but it is wise to proactively update these documents. Assign trusted individuals who can handle your financial affairs and make health care decisions if you become incapacitated.
Review beneficiary designations
Many assets, such as bank accounts and life insurance policies, transfer outside of a will through beneficiary designations. After a divorce, review and update these designations to prevent your ex-spouse from receiving unintended benefits. Contact your financial institutions and insurance companies to obtain and submit change of beneficiary forms.
Encourage family members to reassess estate plans
Your divorce might impact estate plans beyond your own. Family members, such as parents, may have named your former spouse in their estate documents. Encourage them to review their plans to align with their current wishes. This proactive approach helps avoid potential conflicts or unintended outcomes.
Updating your estate plan after divorce may seem daunting, but it is straightforward and essential. You can utilize state-specific online forms or seek guidance from an estate planning attorney. By taking these steps, you secure peace of mind and ensure your estate reflects your current life circumstances.