In an article published in The Legal Intelligencer, Paul Riekhof discusses important estate planning considerations when going through a divorce.
Riekhof explains that people in the process of getting a divorce or who have just become divorced need to address five main elements related to their estate plans: their last will and testaments or revocable trusts, financial powers of attorney, health care powers of attorney and medical directives, life insurance and retirement plan beneficiary designations, and jointly owned assets.
Riekhof explains that divorce, estate and trust laws differ substantially between states. More than 40 states have laws that automatically revoke provisions of pre-divorce estate planning documents upon divorce. However, only 26 states have laws regarding whether a divorce produces an automatic effect on predivorce beneficiary designations. To ensure that your assets pass according to your wishes, it’s important to quickly change all estate planning documents and beneficiary designations upon divorce, Riekhof writes.
Planning for children and other beneficiaries is also an important part of divorce estate planning, Riekhof says, and it’s especially critical if minor children are involved. That includes determining who will manage the assets, who will be involved, and when the assets will be turned over to the children.
Divorces are stressful, and many people don’t consider estate planning when going through a divorce proceeding. If done correctly, Riekhof concludes, estate planning doesn’t have to add to that stress. He further states that taking steps to change the five important elements of an estate plan is a crucial part of fully severing the legal relationship with and avoiding unintentional benefits to a former spouse.
Read the full article “The Keys to Estate Planning During and After Divorce” on the Law.com website (subscription required).
