Estate Planning After Divorce
Following any significant life change, you should review and update your estate plan as necessary. A divorce is a major life event that requires you to update your estate planning documents. Failure to do so is likely to result in your ex-spouse serving in important positions of power upon your death or incapacity and receive assets you no longer want him or her to receive. Make the following adjustments to your estate plan as soon as possible following a divorce:
Last Will & Testament
In all likelihood you do not want your former spouse to inherit your assets when you pass away. State law typically treats a divorced spouse like a deceased spouse, so they are not likely to inherit even if they remain in your will. However, you will want to reconsider who is to serve as your executor. If your spouse was your primary choice, who will you move to that position? You should always name at least 2-3 people to serve in case someone you name is not available.
Also, after a divorce, your financial situation may be very different than it was when you originally signed your will. You may no longer own assets listed in your prior will or you may need to adjust amounts or percentages following a divorce.
Beneficiary Designations
There is nothing worse than having a former spouse listed as a beneficiary of a life insurance policy, annuity or retirement account. You must look at every single financial account you have (checking, savings, money market, CD, investment, IRA, 401K, annuity, life insurance or any other account) to make sure your ex-spouse is not named. Update each beneficiary designation with your financial institutions and save a copy of the update with your other estate planning documents. If you make the change online, check back in a week to make sure the change was recorded properly.
Powers of Attorney
Make sure your former spouse is no longer listed as your agent under your financial (Durable Power of Attoreny) or your health care power of attorney.
HIPAA Waivers
You should also update any HIPAA waivers you signed giving your former spouse the right to access your private medical information.
Property Titles
Most divorce settlements are finalized in a written agreement, but somehow the actual change of legal ownership is not fully accomplished when the agreement is signed. Quite often in these agreements the parties promise to sign whatever documents are necessary to make all the terms of the agreement fall into place at some time in the future. You do not want to have to track down your ex-spouse to get a signature to change legal titles long after your divorce. Get all of the legal work and signing done as soon as possible. Check the titles on real property (deeds), cars, boats, and all financial accounts to make sure ownership is properly updated immediately after your divorce.
If you have not updated your estate plan after your divorce, make an appointment as soon as possible so that we can review your current situation and make all the required changes to protect your assets and family from unnecessary and unintended consequences!
Book a consultation with an attorney at Robbins Law Firm today!
Call 704-892-4098 or email us at info@robbinslawfirm.com.
We look forward to hearing from you!