Review and Revoke Previous Wills and Trusts
Assess Existing Documents
It’s important to review any existing wills, trusts, and other estate planning documents to identify which need updating. Divorce often changes your intentions regarding who should inherit your assets.
Revoke and Redraft
Consider revoking old wills and drafting new ones to reflect your current desires and family dynamics post-divorce. This often involves changing beneficiaries, trustees, and executors who were named under different circumstances.
Update Beneficiary Designations
Financial Accounts and Insurance
Beneficiary designations on financial accounts (like 401(k)s, IRAs) and life insurance policies usually override what’s written in a will. Ensure these designations are updated to reflect your current wishes, removing your ex-spouse if necessary.
Consider the Impact on Minor Children
If you have minor children, it’s critical to make arrangements for their guardianship and any inheritance. This might involve setting up trusts to manage the assets they inherit until they are adults.
Powers of Attorney and Healthcare Directives
Revoke and Redraft Documents
Divorce should prompt a review of your durable power of attorney and healthcare directives. If your ex-spouse was named as your agent or proxy, you likely need to designate a new person to make financial or medical decisions on your behalf if you’re unable to do so.
Real Estate and Property Titles
Adjust Ownership Titles
Review how your real estate is titled. If you owned property jointly, you might need to ensure that the titles reflect any changes made per the divorce settlement, such as transferring ownership to one party.
Tax Considerations
Understand Tax Implications
Post-divorce, your tax situation can change significantly. Consult with a tax professional to understand how changes in your marital status, household composition, and asset divisions impact your tax obligations and planning.
Consult with Professionals
Legal and Financial Advice
Updating an estate plan can be complex, especially following the emotional and financial upheaval of a divorce. Engage with professionals who specialize in estate planning and divorce to ensure that your estate plan aligns with current laws and your new circumstances.