When you fall in love and marry, one of the things you need to do is update your estate plan to reflect your marital status. Some of the updates you may want to make on your estate plan include naming your new spouse as a beneficiary and giving them the power to make financial and healthcare decisions on your behalf should you be incapacitated.
But what happens when you fall out of love and decide to divorce or separate? If this happens, it is important that you review and update your estate plan again. Here are things you should consider revising following your divorce.
You last will
Your last will is a legal document that specifies whom you would wish to inherit your assets when you pass on. If you named your ex as a beneficiary of some of your assets, it is necessary that you update your will to remove them as your beneficiary. This includes removing your spouse from your retirement and bank accounts as well as your life insurance policy.
Your power of attorney
Most people assign their spouses medical and financial powers of attorney. After all, this is someone you can trust to make these important decisions on your behalf should you be incapacitated. However, if they are no longer your item of affection, and the trust is gone, you should reconsider having them in charge of these crucial decisions. This is where the modification of your financial and medical powers of attorney comes in.
Your trust document
If you have set up a trust for your children and named your spouse as the trustee, you may consider removing them from this role when the marriage no longer exists. This is especially important if you did not part ways on the best of terms.
One of the most important reasons for updating your estate plan is divorce. Find out more about the estate planning tools you should review and update as soon as your marriage comes to an end.