If you get divorced, it’s important to update your estate plan. This plan defines what happens to your assets after you pass away, and it can address many other areas, such as your health care decisions.
But a divorce changes things significantly. Here are a few reasons that you want to update your plan if your marriage has recently ended.
Switching spouses
If you’ve gotten divorced and then married again, one of the main reasons to update your will is just to switch your spouses in the estate plan. Even if you haven’t remarried, you may still want to go through and remove your ex from that plan. You do not want to cause any confusion about who should inherit your assets.
Changing beneficiaries
Remember that you’re also going to want to change some of your beneficiaries who may not be listed in your will. For example, if you have a life insurance policy, it has its own beneficiary. You need to update that if you chose your ex – who was your spouse at the time that you bought the policy.
Powers of attorney
It’s also wise to update your powers of attorney. A medical power of attorney gives someone the ability to make medical decisions on your behalf, while a financial power of attorney allows them to access certain financial accounts and things of this nature. If your ex is listed in either of these documents, you certainly want to remove them and switch them out for a different family member or close friends whom you trust.
These are just three things that you want to consider at a time like this. Make sure you know about the legal steps to take to get your plan amended correctly.
