Divorce brings significant changes to your life, and your estate plan should reflect these changes. After separating from your spouse, you must update your legal documents to ensure they align with your new circumstances. This process may seem daunting, but it is essential for protecting your assets.
Create a new will
The first step in updating your estate plan is to create a new will. If your ex-spouse is named as a beneficiary in your existing will, they may no longer inherit under certain state laws. To avoid any confusion, draft a new will that clearly states your intentions. Choose beneficiaries who reflect your current relationships and priorities.
Revise guardianship and directives
If you have minor children, revising guardianship is crucial. You need to appoint a guardian who will care for your children if something happens to you. While your ex-spouse will retain custody, it is important to have a backup plan. Additionally, change the agents named in your power of attorney and health care directives. You may have previously designated your spouse to make financial or medical decisions. Now, select trusted individuals who will act in your best interest.
Update beneficiary designations
Beneficiary designations on accounts and policies often bypass your will. Review all accounts, including bank accounts, investment portfolios, retirement plans, and life insurance policies. Ensure these designations reflect your current wishes. Contact your financial institutions and request forms to change beneficiaries. This step prevents unintended inheritance by your ex-spouse and secures your assets for those you choose.
Consult with family members
Your family members might have included your former spouse in their estate plans. Encourage them to review their documents and make necessary changes. They should ensure that no unwanted individuals remain as fiduciaries or beneficiaries.
Simplify your estate planning updates
Updating your estate plan does not have to be difficult. You can consult an estate planning attorney for personalized guidance. If you plan to remarry, discuss your estate plan with a family law attorney to determine if a prenuptial agreement is beneficial.
While divorce is challenging, updating your estate plan can be straightforward. Take these steps to secure your financial future and ensure your wishes are honored. By addressing these important changes, you can embrace your new beginning with confidence.