Divorce is a catastrophic decision, and its impact is not limited to the sentimental or individual aspects. It can also create a major upheaval in an existing estate plan, which can complicate matters should you die and leave behind a set of instructions as to the division of your property. Click here for more information about the significance of changing your estate plan after a divorce.
Here’s why you should review your estate plan after a divorce:
What You Should Know About Updating Your Beneficiary Forms?
Again, many people include their spouse as the beneficiary on items like life insurance, retirement savings, and investment accounts. They usually annul these designations for your ex-wife/husband after giving a divorce decree. Here are some of the important areas where you need to update these designations once the divorce is finalized:
That being the case, who will handle your estate?
Your will normally has your spouse as the executor or the personal representative through whom your affairs are administered once you are gone. In case of a divorce, it also means that you may have to find another person for this very important position. Unlike other people, the best person should be dependable, responsible, and efficient, and can interpret your intention.
Who will look after your children?
If you have children of tender age, your estate planning probably provided that your ex-spouse should take care of the kids if you are no more. If not, then one should review this designation after the divorce has taken place. Find a person who can nurture your children as per your desired standards.
But does your will reflect your current wishes?
A pre-divorce will mean that the ex-spouse will be entitled to a large portion of your assets when you die. This is not what you would wish to happen after a divorce. Review any legal documents to verify your estates are going where you want them to go.
Conclusion
When it comes to estate planning after a divorce, here are some of the things that you should take to guarantee your new plans to show your intentions of distributing your property as you wish. This will prevent possible mishaps or misunderstandings in the future for your loved ones and hence give you peace of mind.
