What estate planning moves should you make after a divorce?

On Behalf of | Jul 21, 2020 | Estate Planning | 0 comments

Divorcing your partner can lead to new responsibilities and obligations. One of these responsibilities is to update your estate plan. Any major life change requires you to alter your will or trust. By changing these entities, you are keeping them up to date.

Here are a few different changes Forbes insists that you should make to an estate plan after a divorce.

Make beneficiary changes

According to Forbes, you need to consider your beneficiary designations on your retirement plan and any insurance plans you may have. If you die without changing the beneficiary designation, then your former spouse may still be the beneficiary.

Update your intentions for your children

If you have minor children, you may want to consider a trust. If you die while your children are minors, then your former spouse will have control of their inheritance until they are 18 years old. If you have a trust, then you can name someone else as the trustee so that your spouse does not have control of the assets you leave to them.

Likewise, you may want to think about guardianship. In most cases, guardianship transfers to the other parent. If the other parent is unfit, however, you may need to name someone else.

Change your healthcare proxy and power of attorney

Your healthcare proxy provides you with the means to name someone that can make medical decisions on your behalf. If you originally named your spouse, you will want to change it. You will also want to change your power of attorney to a family member or trusted advisor, rather than your former spouse.

Updating all pertinent documents ensures that your ex-spouse will not receive any benefits from them in the future.