Divorce can be a painful and difficult process for you and your family. Once the big decision to go separate ways has been made, there are more decisions and seemingly endless paperwork separating and re-titling assets, selling or refinancing the family home and/or relocating to a new one, custody issues if there are minor children, college expenses for older children... These tasks and more must be completed to be able to move on with your lives.
Often forgotten after everything is settled are changes that need to be made to your beneficiaries and estate planning documents. No matter how well your relationship is with your ex-spouse, most people would agree that their ex-spouse is the last person they want to inherit when they die or to have that person make life and death decisions for them. Unfortunately, that is exactly what can happen if your estate planning documents are not updated. Below is a list of items to review and update to ensure that the correct person/people are named.
Beneficiaries on Retirement Plans and Insurance Policies
Even if you never created an estate plan while you were married, you may likely have a retirement plan or life insurance policy. Many times the named beneficiary on those accounts is your spouse. After a divorce, your spouse is not likely the beneficiary you would like named unless required pursuant the divorce decree. As these plans are contracts, the named beneficiary benefits upon your passing unless you update the policy or plan documents accordingly.
Power of Attorney for Healthcare and Property
As most people will not want their former spouse to have authority over end-of-life decisions or access to medical records it is, therefore, important for someone going through a divorce to update their power of attorney documents. Most importantly for someone going through a divorce or soon thereafter, is to make sure their power of attorney for property is updated. The POA for property could allow an ex to have access to bank, brokerage and retirement accounts, or possibly make financial transactions without your consent. If a client does not have a health care or property POA, it is encouraged that they prepare one so that they can name a trusted individual.
Executor and Trustee
Similar to your health care and property POA documents, revising your will and revocable trust should be at the top of your list. Most people probably don't want to leave everything to an ex-spouse and will want to revise their will and trust to provide for their children, parents, siblings, and/or charities.
The ex-spouse is also likely named as Executor and Trustee in these documents, you will want to name someone else for these positions as well as naming a guardian and successor guardian for your children.
It is important to review and update your estate planning documents accordingly after a life-changing situation. If you would like to have one of our attorneys review your current estate plan or if you have any questions, please feel free to contact Glick and Trostin, LLC at 312-346-8258.
Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein. No one should rely upon the information contained herein as constituting legal advice. The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.
Similar to your health care and property POA documents, revising your will and revocable trust should be at the top of your list. Most people probably don't want to leave everything to an ex-spouse and will want to revise their will and trust to provide for their children, parents, siblings, and/or charities.
The ex-spouse is also likely named as Executor and Trustee in these documents, you will want to name someone else for these positions as well as naming a guardian and successor guardian for your children.
It is important to review and update your estate planning documents accordingly after a life-changing situation. If you would like to have one of our attorneys review your current estate plan or if you have any questions, please feel free to contact Glick and Trostin, LLC at 312-346-8258.
Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein. No one should rely upon the information contained herein as constituting legal advice. The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.
No comments:
Post a Comment