How Can Divorce Affect Your Estate Plan?
April 13, 2020
Your estate plan is most effective when you revisit it often enough to verify that it still stands true to your final wishes despite the ebbs and flows of your life. If you have been divorced, this may be a critical time to take a closer look at your plan and modify it to guarantee it still matches your desires.
Overstepping the necessity of following up on your estate plan could lead to disappointing consequences if your ex ends up inheriting assets or personal possessions because you forgot to remove his or her name.
Estate Planning and Your Divorce
When you initially created your estate plan, chances are you named your spouse as the beneficiary on assets including trusts and other valuable investments. As soon as it is apparent that your relationship has ended, rethink who you want to name as the beneficiary on the assets included in your plan.
Another aspect of planning to be aware of is who you have named as a power of attorney. If relationships have changed and you no longer wish to associate with people you once considered friends or trusted confidants because your marriage has ended, you may wish to select different people to oversee the execution of your plan and its various aspects.
Account for Legal Documentation
According to Forbes, one thing you should absolutely be aware of is the necessity to streamline your updated estate plan with any previously written prenuptial agreements. If you implemented a prenuptial agreement at the start of your relationship, your new estate plan should still honor the terms designated in your prenuptial to verify that your ex will get his or her share of whatever was originally decided on.