There are many changes that come with a divorce. One of these is having to set up new plans for the future. You will likely need to change your estate plan once the divorce is final.
You may not be able to make significant changes to your estate plan prior to the finalization of your divorce both because of limitations imposed by an automatic stay and uncertainty about what assets will remain yours in the future. However, this is something that should be handled as promptly as possible.
What estate plan components should you review after your divorce?
One of the first things you need to check is who is designated as your beneficiary on any payable-on-death accounts, like your checkings or savings. Since most people name their spouse, you might need to change this as quickly as possible so that it’s someone you’d like to get the benefits of the account if you pass away. Insurance policies, investment accounts and pension holdings may also need to be checked.
You also need to review your will and any trusts that you have established. It’s imperative that you only have assets named that you own included in your plans so that your estate doesn’t struggle to meet your directives.
Finally, you need to check the powers of attorney you’ve given, especially if you had your ex named. You need to set a power of attorney for health care and another one for finances. Whether you rely on the same individual for both or name two different people, they should be people who you trust to make decisions in your best interests and according to your wishes.
Is it time to review your estate plans?
Once you have your new estate plan set up, any life change can necessitate a review and updates. Working with an experienced advocate can help ease the process.