Divorce is a life-altering event that brings about significant changes in various aspects of one’s life. One area often overlooked during this tumultuous time is the impact of divorce on an individual’s estate plan. An estate plan, which includes documents like your will, trust, and power of attorney, is designed to protect your assets and ensure they are distributed according to your wishes after your death. However, a divorce can significantly alter these arrangements.
Common changes to estate plans after divorce
Here are five changes people make to their estate plans after a divorce:
- Beneficiary designations: After a divorce, you may want to change the beneficiaries on your life insurance policies, retirement accounts, and other assets. For example, if your ex-spouse was the primary beneficiary on your life insurance policy, you may change it to your children or another family member.
- Trusts: If you have established any trusts, you may need to revise them. For instance, if you had set up a revocable living trust with your ex-spouse as the trustee, you should appoint a new trustee.
- Will: Your will is another document that will likely need updating. You may no longer want your ex-spouse to be the executor of your estate or inherit any of your assets.
- Power of Attorney: If your ex-spouse was your agent in your financial or healthcare power of attorney, you likely would designate a new person to make decisions on your behalf if you cannot do so.
- Guardianship: If you have minor children, you may need to reconsider the appointed guardian. While the other parent typically assumes full custody, this is not in the child’s best interest, so a different guardian may need to be named.
Tailoring your estate plan to your needs
It’s important to remember that estate plans are not one-size-fits-all. They are unique to the person who drafts them. The changes you make should reflect your current post-divorce circumstances and future goals. An experienced estate law attorney can provide valuable guidance for making these changes, tailoring your estate plan to meet your needs and providing peace of mind. Remember, updating your estate plan after a divorce is not just about protecting your assets—it’s about ensuring a more secure future for you and your loved ones.