How to Review and Update Estate Plans After Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

How to Review and Update Estate Plans After Divorce

Divorce marks a significant life transition, but finalizing your divorce isn’t the end of the road—especially when it comes to protecting your assets and ensuring your wishes are honored. One of the most important yet often overlooked steps after divorce is reviewing and updating your estate plan. This includes your will, trust, powers of attorney, healthcare directives, and beneficiary designations.

Tim Blankenship of Divorce661 emphasizes that leaving these documents unchanged can lead to serious complications, like your ex-spouse still being named as a beneficiary or decision maker. Here’s a detailed guide to help you navigate this crucial post-divorce task and safeguard your legacy.

Why Updating Your Estate Plan After Divorce Is Essential

Many people create wills or living trusts during their marriage, often naming their spouse as the primary beneficiary or trustee. After a divorce, if these documents are not updated, your ex may still have legal authority over your assets or be entitled to inherit significant portions of your estate. This can create confusion and conflict, especially if your intentions have changed.

Updating your estate plan ensures your assets go to the people you trust now—whether that’s your children, other family members, or close friends—and that your medical and financial decisions are in the hands of the right people.

Step 1: Review Your Will and Living Trust

Start by carefully examining your existing estate documents. If your will or living trust was created during your marriage, it’s likely that your ex-spouse is named as the primary beneficiary or the executor/trustee.

  • Remove your ex-spouse: Update beneficiary designations to reflect your current wishes.
  • Name new beneficiaries: Consider naming your children, other family members, or trusted friends as beneficiaries or trustees.
  • Consult an estate planning attorney: Changes to trusts and wills can be complex, so professional guidance is recommended.

Step 2: Update Powers of Attorney and Healthcare Directives

Powers of attorney and healthcare directives are legal documents that allow someone to make financial or medical decisions on your behalf if you become incapacitated. Often, these documents still list the ex-spouse as the agent after divorce, which can be risky.

  • Revoke old documents: Officially revoke any powers of attorney or healthcare directives that name your ex.
  • Create new documents: Execute updated versions with agents you trust, ensuring your financial and medical decisions are handled appropriately.

Step 3: Check Beneficiary Designations on Financial Accounts

Beneficiary designations on life insurance policies, retirement accounts, and investment portfolios override what’s written in your will or trust. This means that even if you update your will, outdated beneficiary designations can still result in assets going to your ex-spouse.

  • Review all accounts: Life insurance, 401(k)s, IRAs, and brokerage accounts should be checked for current beneficiary designations.
  • Update beneficiaries promptly: Change beneficiaries to reflect your new wishes.

Real Client Story: A Cautionary Tale

We worked with a client who had finalized her divorce but hadn’t updated her living trust. She was shocked to discover that her ex was still named as the successor trustee and primary beneficiary. This oversight could have resulted in her assets being managed and inherited by someone she no longer trusted.

We connected her with an estate planning attorney who helped update all her documents, ensuring her wishes were clear and her assets would be distributed to the right people. This story highlights how critical it is to review and update your estate plan right after divorce.

How Divorce661 Supports You Beyond Divorce

At Divorce661, our commitment goes beyond helping you finalize your divorce. We offer flat-fee divorce services that include post-divorce support, such as flagging important follow-up tasks like estate planning. We also provide trusted referrals to estate planning experts across California, ensuring you receive comprehensive guidance.

Our 100% remote services make it easy to stay on track and avoid missing crucial steps. If you’ve recently divorced and haven’t yet updated your estate plan, we encourage you to take action now.

Protect Your Assets and Peace of Mind

Updating your estate plan after divorce is a vital step in protecting your legacy and ensuring your wishes are honored. Don’t let outdated documents cause confusion or unintended consequences.

Visit Divorce661.com to schedule a free consultation. We’ll help you take the right steps to safeguard your assets, update your estate plan, and secure your peace of mind.

Have You Updated Your Estate Plan After Divorce?

It’s a question many overlook but one that can save you and your loved ones from future headaches. Share your experience or ask questions in the comments below—we’re here to help you navigate this important process.