Newly Divorced? Do Not Forget to Change Your Estate Plan

 Posted on January 20, 2023 in Complex Divorce

One of the most overlooked financial areas for people who are in the process of getting divorced is estate planning. Most people become so focused on child custody, child support, spousal support, and division of assets, that drawing up a new estate plan gets lost way down on the bottom of their to-do list. But failing to update or create a new estate plan can be disastrous for your family should something happen to you.

Beneficiary Designations

There are likely multiple places where you have chosen your now ex-spouse as the beneficiary, including annuity funds, pensions, IRAs, life insurance policies, and other financial accounts. Although some of these accounts may have been involved in the divorce asset distribution and no longer have your ex’s name as beneficiary, other documents, like life insurance policies, will need to be changed. There have been many cases where a person has failed to change the beneficiary, remarried, and passed away, and had funds go to their ex-spouse, not their current spouse.

Wills

If you have a will in place that leaves everything to your ex, you will want to make sure to have a new will drawn up with new heirs. If you named your spouse as executor of your estate, make sure to change that, as well.

Power of Attorneys

Many people have healthcare power of attorneys and durable power of attorneys as part of their estate plans. A healthcare power of attorney allows that person to make all medical decisions should the individual no longer be able to make those decisions for themselves. A durable power of attorney names the person who will make all the financial decisions should the individual become incapacitated and unable to do so.

If you named your spouse in the original of these documents, you will want to make sure new documents are drawn up naming another individual to entrust these duties to.

Trusts

Many people take advantage of trusts in their estate plans. There are many benefits to setting up trusts, including avoiding having the assets contained in the trust go through the probate process. Every trust has a beneficiary, so if your now ex-spouse was named as a beneficiary in trusts you have established or named as a trustee to oversee the trusts, you will want to speak to an attorney about changing these items.

Contact a Travis County Complex Divorce Attorney

There are many financial issues to consider in a high asset divorce. Make sure you have a skilled and dedicated Austin, TX high net worth divorce lawyer protecting your interests. Call Powers Kerr & Rashidi, PLLC at 512-610-6199 to schedule a confidential consultation.

Source:

https://guides.sll.texas.gov/sb.php?subject_id=60393