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Estate Planning Considerations Following a Divorce |
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By Letty Van Ert
Most people have three goals in mind when creating an estate plan: 1) getting the right stuff, 2) to the right people, 3) in the right manner.
Many clients wonder what happens to their wills and other estate plans following a divorce. I would advise these clients to review the above goals to make sure those goals can be met following a divorce.
Some basic points to keep in mind include the following:
Wills
- Once a divorce or annulment is final, the divorce automatically revokes the provisions of a will which leave property to your ex-spouse or which name your ex-spouse as the personal representative (formerly known as "executor") of your estate. Legal separation does not revoke the provisions of a will.
- If you do not have a person designated to fill the shoes of the personal representative other than your ex-spouse, then the court will appoint someone for you. The court may not choose the person you would prefer.
- If you re-marry your ex-spouse, then those provisions naming your ex-spouse (now current spouse) as beneficiary or personal representative of your estate are revived.
Powers of Attorney
- Upon commencement of divorce, separation, or annulment proceedings, the Power of Attorney naming your ex-spouse as the attorney-in-fact is automatically terminated.
- If you do not have a person other than your ex-spouse designated to be the attorney-in-fact under a Power of Attorney, the Power of Attorney document will be useless.
Health Care Directives
- Upon commencement of divorce or annulment proceedings, the Health Care Directive naming your ex-spouse as the agent is automatically revoked.
- If you do not have a person other than your ex-spouse designated to be the agent under a Health Care Directive, the Health Care Directive document will be useless.
Trusts
- A divorce or annulment automatically revokes a trust provision that names your ex-spouse as the beneficiary or trustee or which gives your ex-spouse a power of appointment. Legal separation has no effect on trust provisions.
- Property that is prevented from passing to your ex-spouse through a trust because of a divorce or annulment is treated as if your ex-spouse died on the date of the divorce decree or annulment.
- If you re-marry your ex-spouse, then those provisions naming your ex-spouse (now current spouse) as beneficiary, trustee, or which gives your spouse a power of appointment are revived.
It is a good idea to consult with an attorney to understand the implications of a divorce given your specific circumstances, and then to make any necessary changes to your estate plan to ensure that your goals are met.
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