Divorce is a challenging chapter in life. Once it is over, the last thing you want is more paperwork. Yet, reviewing your estate plan post-divorce is crucial. Significant life events like divorce necessitate this review to ensure your wishes are honored.
Draft a new will
If your will names your ex-spouse as a beneficiary, it is time for a change. Many states automatically treat an ex-spouse as if they predeceased you. However, this is not universal. To be safe, create a new will. Update your beneficiaries to reflect your current wishes. Your beneficiaries should be the people you want to inherit your assets.
Update guardianship for minor children
If you have minor children, ensure their future is secure. Name guardians who will care for them if something happens to you. Typically, a surviving parent gains custody. But what if both parents are gone? Designate a responsible guardian to oversee your children’s well-being, education, and health care.
Revise power of attorney and health care directives
During marriage, many appoint their spouse as their financial power of attorney or health care surrogate. Post-divorce, you may not want your ex-spouse making these critical decisions. Some states automatically remove an ex-spouse from these roles, but do not rely on that. Draft new documents to appoint trusted individuals for these responsibilities.
Consider the case of Gary Coleman. Despite his divorce, he did not update his health care power of attorney. This oversight allowed his ex-spouse to make critical health decisions for him. It is a cautionary tale highlighting the importance of timely updates.
Review beneficiary designations
Assets like bank accounts and life insurance do not transfer through a will. They rely on beneficiary designations. Post-divorce, review these designations. Ensure your accounts and policies reflect your current wishes. Otherwise, your assets might unintentionally benefit your ex-spouse. Contact financial institutions for beneficiary change forms to make necessary updates.
Your divorce might affect more than just your estate. Family members may have included your ex-spouse in their plans as well. Encourage them to review their documents. Ensure their plans align with their current wishes, excluding any unintended beneficiaries.
Updating your estate plan is not as daunting as it seems. Many resources, like online forms or local attorneys, can simplify the process. If you are considering remarriage, consult a family law attorney. A prenuptial agreement might be a wise addition to your new plan.
While divorce is tough, updating your estate plan is a vital step. It ensures your assets and wishes are protected and honored.
