Don’t Forget to Review Your Estate Plan After Divorce

Divorce, undoubtedly, is a life-altering event. Beyond the emotional upheaval, it brings about significant changes in an individual’s financial and legal circumstances. One aspect often overlooked in the post-divorce transition is the necessity to review and update one’s estate plan. Failure to do so can lead to legal complications and unintended beneficiaries.

The Bellinger Law Office understands that amidst the turmoil of a divorce, estate planning might not be at the forefront of your concerns. However, it is a crucial step that cannot be ignored. Divorce does not merely end a marriage; it necessitates a thorough review of your estate planning documents to ensure they align with your current circumstances and wishes.

Beneficiary Designation

Many individuals name their spouse as the beneficiary in their Last Will and Testament or on their insurance policies and retirement accounts. However, after divorce, these designations can lead to unintended consequences.

Indiana law treats the ex-spouse as being predeceased once the divorce is finalized. This means that the provisions naming them as a beneficiary will be voided. However, this law does not apply in cases of legal separation or pending dissolution proceedings.

To avoid issues, it is critical to review and update beneficiary designations across all platforms. Simply updating your will is not enough; the beneficiary designations on your life insurance policies, retirement accounts, and investment accounts must also be revised.

Review and Amend Other Estate Planning Documents

In addition to beneficiary designations, it is essential to review and amend other estate planning documents, such as powers of attorney and advance directives. Update any designations that include your ex-spouse to reflect your current wishes. Consider appointing someone else as your healthcare proxy and financial power of attorney.

Additionally, if you have minor children, it is crucial to review and update guardianship designations in case both parents pass away or become incapacitated. This ensures that your children are well taken care of by someone you trust.

Review Trust Documents

If your estate plan includes a trust, it is essential to review and update this document as well. In many cases, trusts are created for the benefit of a spouse or children. After divorce, you may want to amend these provisions and appoint new trustees or beneficiaries.

Update Ownership on Accounts and Property

Another crucial step is updating the ownership of accounts and property. Failing to do so can cause enforcement issues and potential legal battles with an ex-spouse over provisions issued in the divorce decree.

Seek Legal Advice

Navigating these complexities can be overwhelming, but seeking legal advice can ease the process. The Bellinger Law Office is committed to providing the necessary guidance to help you manage these updates effectively. Our experienced attorneys can review your estate plan and ensure it matches your current wishes and circumstances.

Contact Us Today

Reviewing and updating an estate plan after a divorce is imperative to avoid legal issues and unintended consequences. The Bellinger Law Office is here to provide the best possible service and support during this challenging time. Contact us today to schedule a consultation and ensure your estate plan is up-to-date.