After a divorce, there are a lot of changes to make. One thing that often gets overlooked is updating your estate plan.
This can be a big mistake, as your previous estate plan may no longer reflect your current situation.
Significant life changes require an updated estate plan
You should review your estate plan regularly to ensure that it reflects your current situation. Major life events should also be a trigger for a plan review. Divorce is difficult, but it’s important to remember that it impacts your estate plan.
Here are some things to consider:
- Update your will. Be sure to remove your ex-spouse as a beneficiary and executor of your will.
- Change your power of attorney. If you have appointed your ex-spouse as your power of attorney, revoke that designation. You’ll need to select someone else as your power of attorney who you trust to make decisions on your behalf if you become incapacitated.
- Review your life insurance policy. If you have a life insurance policy, ensure that your ex-spouse is no longer the beneficiary. You may also want to consider changing the amount of coverage or the beneficiary if you have children from your previous marriage.
- Update your retirement accounts. Be sure to change the beneficiary on any retirement accounts, such as an IRA or 401(k). You may also want to consider whether you need to change the way the account is titled to avoid any complications down the road.
It is important to seek legal help before making any changes, as you want to be sure that your estate plan reflects your wishes and meets all legal requirements. These steps will ensure that your estate plan is up-to-date and provides for your loved ones the way you intend.