The Impact of Divorce on Your Estate Plan

From rethinking beneficiary designations to updating wills and trusts, here’s how divorce impacts your estate plan and what you should do to stay on top of it.

1. Review and Revise Beneficiaries

Your estate plan might still list your ex-spouse as a beneficiary when a marriage ends. Your retirement accounts, life insurance policies, or other financial assets could inadvertently go to your former partner. Be sure to update these designations to reflect your current wishes.

2. Update Your Will

Your will is likely to need a makeover post-divorce. If your ex-spouse was named executor or trustee, you must appoint a new individual. Additionally, reassess how you want your assets distributed among family members, friends, or charitable organizations.

3. Revisit Trusts

If you had set up trusts during your marriage, they may need adjustments. Divorce can impact the terms of the trust, the trustees, and the beneficiaries. Ensure your trusts are realigned with your new situation to function as intended.

4. Examine Powers of Attorney

Divorce may also necessitate changes to your power of attorney documents. These legal documents designate individuals to decide on your behalf if you cannot do so yourself. Ensure these are updated to reflect new trusted individuals who can act in your best interest.

5. Consider Tax Implications

Divorce can have tax consequences that affect your estate planning. For example, alimony payments or asset transfers can impact your tax situation. Consulting with a tax advisor can help you navigate these changes effectively.

6. Communicate with Your Estate Planning Attorney

During such a significant transition, it is crucial to maintain open lines of communication with your estate planning attorney. They can provide guidance on necessary updates and ensure your estate plan accurately reflects your current wishes and circumstances.

Ready to Revise Your Estate Plan?

Divorce can be challenging, but ensuring your up-to-date estate plan can provide peace of mind. Don’t leave your future to chance—contact us today to review and revise your estate plan.

Call us at (602) 262-4357 or visit wesbrookslaw.com/contact-us/ to schedule a consultation. Let’s ensure your estate plan aligns with your new chapter!