Divorce & Estate Planning

Divorce is not an easy process and when you finalize your divorce, you may not be ready to jump in and hire another attorney, but your estate plan may require it. Here are some things to think about if you are recently divorced.

Review Estate Distribution

If you are recently divorced, it is a good time to think about how you want your estate distributed. Any prior estate planning would have likely involved your ex and now you need think about what you should do now that they are out of the picture. And if you have kids, how are you going to set up an estate plan that takes care of them.

Establish Trusts for Minor Children

If you have minor children, you will want to ensue that your will establish a trust for your minor children that can hold any assets they inherit until they reach a certain age. Setting up the trust is important because you can select someone you know and trust as the trustee and not have to rely on your ex taking care of any assets they inherit from you.

Consider Naming a Guardian of your Children

When you pass, custody automatically goes to your ex. There could be issues with their ability to raise the child, for instance they may have substance abuse issues or instability issues. They may also not be live far away and it doesn’t make sense for your kids to change community and schools. In these instances you will want to name a guardian for your children in your will. You can even help set your guardian up with funds for legal fees if you think there is going to be a court battle regarding the guardianship.

Update Power of Attorney & Healthcare Proxy

Did you name your ex as your power of attorney and healthcare proxy? You will want to review these documents and name new individual who can take control of your assets and healthcare in the vent you are unable to make these decisions for yourself.

Change Beneficiary on Life Insurance & Other Accounts

You will want to review your life insurance and ensure you have the correct person named as your beneficiary. Your life insurance will go directly to the named beneficiary and will not be impacted by the will. Some bank accounts are also set up as Payable-on-Death Accounts that bypass probate. When you set up these accounts you name a beneficiary at the bank who is transferred the assets upon your death. You will want to review the beneficiary on any POD accounts in addition to your life insurance accounts. Your bank, insurance agent, or customer service should be able to help you process these changes.