After a divorce, updating your estate plan is essential to ensure your estate distributes your assets according to your new wishes. Many people forget this crucial step, leaving their former spouse as a beneficiary or in control of important decisions.
Review your will and beneficiaries
The first step is to review your will. If you have your ex-spouse as a beneficiary, you’ll need to remove them and update your list of heirs. A divorce automatically removes your ex-spouse as a beneficiary under your will, but it’s still smart to make the changes official and clearly name new beneficiaries to avoid confusion.
Next, review any beneficiary designations on life insurance policies, retirement accounts, and payable-on-death accounts. These designations override your will, so updating them is crucial.
Update your documents
If your ex-spouse was your designated power of attorney or had control over your health care directives, you should update these documents. You’ll want to appoint a trusted individual to manage your finances and make medical decisions on your behalf, should you become unable to do so.
Change guardianship designations
If you have children, you may need to review and update any guardianship designations in your estate plan. Divorce doesn’t automatically change these arrangements, so it’s important to clearly specify who you want to care for your children if something happens to you.
Moving forward with your estate plan
Ensuring your estate plan reflects your current wishes after a divorce is a key step in protecting your future. By making thoughtful updates, you can have peace of mind knowing your assets and responsibilities are in order. Regularly reviewing these documents helps keep everything aligned with your evolving circumstances.