Have you considered what getting divorced means for your estate plan? If you don’t review and revise your plan to reflect the major changes in your life, all or part of your estate might still pass to your former spouse, leaving less for the beneficiaries you wish to leave your legacy. Here are some suggestions for updating your estate plan after a divorce.
What Parts of Your Estate Plan Does a Divorce Effect?
Getting divorced impacts your estate plan in countless ways, but some crucial components of your plan that need particular attention include:
- Your Will – If you don’t update your will after a divorce, it may still list your former spouse as a beneficiary or the executor of your estate. Failing to update your will could lead to lengthy, expensive conflicts between your ex-spouse and other heirs.
- Trusts – If you created a trust with your ex-spouse, you may need to modify or revoke it if you don’t want them managing or benefitting from the assets you placed in the trust.
- Powers of Attorney – It’s common for spouses to name each other as their financial or medical power of attorney. If you don’t update these documents, you could leave significant control of your affairs in your ex-spouse’s hands.
- Beneficiary Designations – Getting divorced doesn’t always remove an ex-spouse from life insurance policies, retirement accounts, or payable-on-death bank accounts. Double-check these designations to make sure your assets go to your preferred beneficiaries.
- Guardianship for Minor Children – If you have minor children, your estate plan may outline who will care for them if something happens to you. The other parent may have custody rights, but you can also name a backup guardian for your children in case something happens to your ex as well.
- Real Estate and Property Titles – If you and your former spouse owned property together, you may need to update the deeds or retitle the property to reflect the new ownership structure.
How to Update Your Estate Plan After a Divorce
If you’re concerned about your ex’s role in your estate after your death, follow these steps to update and protect your estate plan:
- Revoke and Draft a New Will – It’s often best to revoke your old will and create a new one instead of modifying an existing will. This extra step helps to ensure no outdated language accidentally remains in your will.
- Update Your Healthcare Directives – If you named your former spouse as your healthcare proxy in a living will or advance directive, replace them with someone you trust to make medical decisions on your behalf.
- Modify or Create a New Trust – If you had a revocable trust with your ex, you may need to dissolve it or amend its terms, which can be a complicated and lengthy process. If you don’t have a trust, consider creating one to protect your assets and make sure they go to your preferred beneficiaries.
- Adjust Asset Distribution Plans – Divorce may affect how you want to distribute assets to children, family members, or charities. An estate planning attorney can help you update these plans to reflect your new wishes.
- Secure and Store Updated Documents – Once you make these changes, keep your updated estate plan in a safe place and provide copies to your executor, trustee, or other relevant parties.
Contact Our Estate Planning Lawyers Now
The North Carolina and South Carolina estate planning lawyers of Monk Law Firm understand both the difficulty of divorce and the importance of updating estate plans afterward. We can help you update your plan to give you peace of mind and safeguard your legacy. Call now or complete our contact form for a confidential consultation.