Critical Post-Divorce Estate Planning Moves
Divorce can be a traumatic event. But you cannot rest once the divorce is final. You must immediately take action to update your estate plan to reflect your new marital status. A short article in Forbes online does a good job of summarizing what must be done with an estate plan following divorce. You need to review and revise your existing estate planning documents with the help of a competent estate planning attorney. These include your will, trust, power of attorney (financial and medical), and beneficiary designations on life insurance and retirement accounts. Your ex-spouse should be removed as a fiduciary (executor, agent, trustee, etc.) in your estate plan. Further, your ex should be removed as a beneficiary of your estate plan (including life insurance and retirement accounts). If you do not, part of your estate could pass to your ex, which may not be your intent. However, you need to make sure that any changes are consistent with the provisions of your divorce decree. As a legally binding instrument, you cannot make a change to your estate plan that contradicts the divorce judgment. Read the entire article here.