After any important life event, including divorce, the majority of estate planners suggest amending a will and other documents. Making modifications to an estate plan after a divorce can assist to prevent hassles in the future and protect your wishes, as we explain below. Divorce affects almost every element of a person’s life, including their mental well-being and financial situation. The effect of a divorce on one’s estate plan is one matter that might not be at the top of someone’s thinking. Few of us would prefer that our ex-spouse receive our property in the same manner that we did throughout our marriage. But, things might not go as planned if your estate planning documents aren’t updated. Get help from a divorce lawyer in Birmingham, AL today.
Previous powers of attorney:
It is crucial to revoke previous powers of attorney and appoint a new agent to guarantee that your desires are carried out. Otherwise, the incorrect person can be put in charge of making decisions regarding your care in the event of an accident or unanticipated sickness. Most people give their spouse financial power of attorney or designate them as their healthcare proxy. Nonetheless, these designations ought to be changed upon dissolution for numerous reasons.
Amending a will and trust:
After a divorce, it is advisable to amend your will to ensure that property is distributed precisely following your preferences. A divorce rescinds all inheritances given to the former partner in a will, according to Alabama Code Section 43-8-137. In essence, the distribution of assets under the will happens as if the former spouse passed away first.
Several couples create joint trusts or appoint one another as trustees to manage the trust’s assets following the death of one partner. Your ex-partner can also be a trust beneficiary. In wake of your divorce, it’s crucial to review any revocable living trusts you may have created for your children or yourself. This indicates that your ex might get your assets when you do not update your trust. Alternatively, your ex might decide how your funds are used on your kids.
Although divorce affects your ties with your ex-spouse and your ex-in-laws, it does not necessarily alter your inheritance plan. Take the time to update your powers of attorney, wills, trusts, and beneficiary names to suit your new life to prevent unwanted future consequences.