It is estimated that fifty percent of the marriages in the United States end in divorce.
Divorce is a long, emotional and stressful process. People routinely fail to update their estate plans after divorce. Failure to update your estate plan will have devastating results upon you family such as your former spouse ending up with life insurance, assets, or retirement plans that you intended to leave your children or other family members.
At Hymanson Law, we help clients navigate the pitfalls that occur when you do not update your estate plan after divorce.
Here are 5 estate planning changes you need to make after a divorce.
- Change your power of attorney and healthcare proxy. It makes sense that a couple use each other as a power of attorney both financially and medically. If your former spouse has a durable power of attorney or healthcare proxy, it gives your former spouse control over your assets and medical decisions. After divorce, you should immediately update your power of attorney and healthcare proxy so you former spouse cannot make financial and medical decisions for you.
- Amend your trust. If you have a revocable trust, it can be amended at anytime. If you do not amend your revocable trust after divorce, your former spouse will be receiving assets from the trust, or managing assets for your children or other family members. After divorce, you need to update your trust to avoid your former spouse from receiving assets or from managing your assets for your children or other family members after your death.
- Revisit your will. It is important to update your will after divorce so your former spouse is not the executor of your estate or a beneficiary of your assets.
- See what else you can alter. After divorce, you need to change your beneficiary designations so your former spouse does not receive your life insurance or your retirement plan after your death.
- Reviewing joint tenancy. If you own property with your former spouse as joint tenants, upon your death, your interest in the property will automatically pass to your former spouse. It is important that you have the title changed so that your interest in the property passes to your chosen beneficiaries.
There is a lot to take into consideration when it comes to divorce, but amending your estate is critical. Contact our team to get started now!