Once you make an estate plan, you should review it every year or so to make sure it remains relevant. Yet the changes needed due to a divorce merit a revision then and there.
Here are some updates that you should consider making when you end your marriage:
Updating the assets your estate plan mentions
Let’s imagine your estate plan says you would like to leave the beach house to your daughter and $200,000 of technology stocks to your son. If you divorce and need to sell the beach house or pass some of the stocks to your spouse, you can no longer leave them to your kids. So, you should update your plan to reflect only the assets you emerge from the divorce with.
Updating your powers of attorney
Did you name your spouse as your power of attorney for legal matters or health decisions? If so, you may want to remove them when you divorce and replace them with someone else.
Updating your beneficiary designations
Specific assets allow you to designate a beneficiary so that upon your death, the asset passes directly to that named beneficiary rather than going through probate. If you divorce and forget to change these, nothing you write in your will can stop these assets from going to the currently listed beneficiary when you die – even if you divorced them years ago.
Remembering to update your estate plan after a divorce can save you and your loved ones trouble and distress in years to come. With appropriate guidance, you can do so more easily.