What estate planning updates are needed after a divorce? Use this guide.
Divorce brings many changes, including the need to update your estate plan. After a significant life event like divorce, reviewing and revising your estate planning documents to reflect your new circumstances and protect your future is crucial. This includes updating your healthcare proxy, reviewing your Will, selecting new beneficiaries, and revisiting guardianship choices. By taking these steps, you can ensure that your assets and healthcare decisions align with your post-divorce wishes and that your loved ones are properly cared for. If you are ready to make estate planning updates after your divorce, work with your Millman Law Group attorney to cover your bases.
Revoke Your Current Will
If you started estate planning with your former spouse, you will want to update your Will once your marriage ends. For example, you will want to update your Will if your spouse was appointed as your personal representative or a trustee of a trust. Generally, it is recommended that you review your Will and check that all the details, including your spouse, are updated if necessary. There may be things you overlook, so combing through the details with your estate planning attorney is important.
Update Your Health Care Proxy
You most likely appointed your spouse as your Healthcare Proxy, which means they would have the power to make healthcare-related decisions on your behalf when you are incapacitated. You can leave your choice as is, but it depends on your post-divorce relationship. Otherwise, this is one of the estate planning updates most people require after a divorce. You need a Healthcare Proxy you can completely trust to understand your wishes and be there to make important decisions when you cannot.
Select New Beneficiaries and Powers of Attorney
Your beneficiaries will receive assets or money from your Will or Trusts, so it’s important to decide whether your spouse should still be included. Additionally, don’t forget to make estate planning updates after a divorce to the following:
- Life insurance policies
- Retirement accounts – IRAs and 401ks
- Pay on death (TOD) accounts
Review who you gave Power of Attorney to, so you may revise that decision to find someone more appropriate for your needs.
Consider Setting Up a Trust
If you don’t already have a Trust established to handle alimony or child support, this may be a wise move post-divorce. This Trust can help direct funds to your heirs after your death. Trusts can also be used if you don’t want your ex-spouse to be your children’s guardian after your death or incapacitation. A Revocable Trust can name someone besides your ex-spouse as a Trustee so they can manage money and assets in your estate for the benefit of your children.
Revisit Guardianship Decisions
If you have valid concerns about how fit your ex-spouse would be as the sole provider of your children, you should take care to put grievances in writing and select guardians you prefer in your Estate Plan. It’s not always easy to remove custody from a biological parent, but with your concerns in writing in a legally valid document, a judge can review your concerns after your death to make the appropriate decisions.
Understand Your Life Insurance Policy
Review your life insurance policies, so you know how they are paid for and what they guarantee. You may not need to make any adjustments, but you should clearly understand the policies and who will benefit from them.
As always, if you are concerned about making the best decisions for your estate plan, partner with your estate planning attorney. The Millman Law Group lawyers can help you understand the best estate planning updates to make after your divorce.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.