Divorce can be an emotional and overwhelming process, and dealing with legal matters like estate planning might be the last thing on your mind. However, you must update your estate plan after a divorce to ensure. After divorce, here are five important moves to protect yourself and your loved ones.
1. Make a new will
If your ex-spouse is a beneficiary in your will, most states will treat them as if they had passed away. While not all states follow this rule, making a new will after your divorce is best. Review your beneficiaries and update them to reflect your current wishes. You will want to ensure that your assets go to the right people.
2. Change your power of attorney and health care agents
During your marriage, you may have named your spouse your financial power of attorney or health care agent. After a divorce, it is vital to change these designations. While some states automatically revoke your ex-spouse’s role as your agent, you should create new documents to name someone you trust in these roles. You do not want an ex-spouse making decisions about your money or health care.
3. Update beneficiary designations
Your will does not cover all assets. Beneficiary designations transfer things like bank accounts, retirement funds, and life insurance policies. After your divorce, review all your accounts and policies. If you do not make these changes, your ex-spouse could end up with your assets.
4. Revise your trust or executor
It is time for a change if you had a trust or named an executor before your divorce. Make sure your new trustee or executor is someone you trust. You do not want your ex in charge of your estate after you are gone. This revision can help ensure your property is handled according to your current preferences.
5. Review family members’ estate plans
Divorce does not just affect you; it can also impact your family. If your family members named your ex-spouse in their estate planning documents, such as a guardian, health care agent, or beneficiary, they should review and update their plans. This step helps avoid any confusion or potential issues down the line.
Divorce may be difficult, but updating your estate plan does not have to be. Taking these steps will clearly outline your wishes and help you avoid any legal complications in the future. If you are unsure where to start, consider consulting an estate planning attorney to guide you through the process.