Many people overlook estate planning after divorce, but it’s a critical step in securing your future and protecting your assets. In fact, half of Americans pass away without ever writing a will, and this is even more common among those who have recently gone through a divorce. If you’ve finalized your divorce, here are five essential estate planning strategies you need to tackle right away:
1. Revoke Your Old Will
After your marriage dissolution, your first step should be to revoke your previous will. Simply tearing up the old document won’t suffice. Draft a new will that explicitly states the revocation of any prior wills. The old will likely left property to your ex-spouse and named them as the executor. Now, you’ll need to select new beneficiaries and appoint a new executor.
2. Designate a Guardian for Minor Children
Wills do more than just name beneficiaries—they also allow you to designate guardians for minor children. While the co-parent typically assumes this responsibility, not all parents may want or be able to take custody. If needed, you can select an alternative guardian for your children in your will. This informs the probate judge of your wishes in case you pass away while your children are still minors.
3. Update Your Life Insurance and Retirement Account Beneficiaries
Like your will, your life insurance and retirement account beneficiaries are likely still set as your ex-spouse. Many people forget that, regardless of divorce, the Employee Retirement Income Security Act (ERISA) requires administrators to give funds to whoever is named as the beneficiary. Without explicitly updating these designations, your ex could still receive these funds. Make sure to update your beneficiaries promptly.
4. Designate Power of Attorney
You probably assumed your spouse would handle your finances or health care decisions if you became incapacitated. After a divorce, this is no longer the case. Designating a power of attorney is critical, and it’s often recommended to appoint separate individuals for financial and health care decisions. This ensures that your affairs will be managed according to your wishes.
5. Review Your Trust Options
If you and your ex-spouse established an irrevocable trust, unfortunately, you cannot make changes to remove them as a beneficiary. However, if you created a revocable trust, you can update it by removing your ex as a beneficiary or trustee and selecting new individuals who align with your current circumstances.
Taking prompt action with these estate planning steps can relieve a great burden post-divorce, helping you to start fresh without the worry of lingering estate issues. If you’re ready to tackle your estate planning after divorce, Contact DiPietro Family Law Group today to get started.