Contentions are a part of the gamble of ending a marriage. Most spouses might enter the divorce process amicably, but something might come up that would cause tension. In times like these, it’s important to protect your interests by handling what you can control: your estate. Here are five key estate planning documents to update after your divorce:
- Your will: This is often the first document people think of when it comes to estate planning. After a divorce, you’ll want to revise your will to reflect your new circumstances and wishes. This might include changing beneficiaries or guardians for your children.
- Power of attorney: During your marriage, your spouse likely had the power to make financial decisions on your behalf. It’s crucial to update this document to designate a new trusted individual to handle your affairs if you become incapacitated.
- Health care directive: Similar to your power of attorney, you should choose a new person to make medical decisions for you if you can no longer do so yourself. This person could be a family member, close friend or another trusted individual.
- Beneficiary designations: Don’t forget your life insurance policies, retirement accounts and other financial accounts. These often pass outside your will, so it’s important to update the beneficiaries directly with each institution.
- Trust documents: If you have a trust, you’ll need to review and potentially revise it. This is especially important if you and your ex-spouse had a joint trust, as you may need to create a new individual trust.
Making changes to these documents can feel overwhelming, but it’s essential to protecting your assets and ensuring your wishes are respected, with or without your soon-to-be ex-spouse.
Addressing a complex divorce and estate planning
Estate planning becomes even more crucial when dealing with a high-asset divorce. For example, if you own a business, you may need to update your succession plan. This could involve restructuring ownership or revising buy-sell agreements. It may also involve creating new trusts to protect your business assets.
There are many important considerations to your estate plan post-divorce. A local estate planning attorney can guide you through this process and help update your plan according to Kentucky law.
