Divorce and Estate Planning: Ensuring Your Assets Are Protected
Going through a divorce can be overwhelming, with many legal and financial considerations to address. However, updating your estate plan should not be overlooked. It’s a crucial step to ensure your assets are distributed according to your wishes and not influenced by your ex-spouse.
Key Points to Consider
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Understand How Divorce Affects Your Estate Plan
Divorce generally revokes an ex-spouse’s rights to inherit through a will or revocable living trust. However, if you have minor children, your ex-spouse may still gain control over their inheritance unless safeguards are in place. -
Benefits of a Revocable Living Trust
Creating a revocable living trust can give you greater control over how and when your children receive their inheritance. You can appoint a trusted individual as the trustee to manage distributions, avoiding the default guardianship rules that might otherwise give control to your ex-spouse. Trusts can also shield assets from your children’s future divorces if structured appropriately. -
Update Beneficiary Designations
Retirement accounts and life insurance policies are governed by beneficiary designations, not your will or trust. Ensure your ex-spouse is removed as a beneficiary and new beneficiaries are named to prevent unintended claims on these assets. -
Act Quickly
Delaying estate plan updates can create legal and financial vulnerabilities. Take proactive steps to review and revise your plan to ensure it reflects your current wishes and protects your children’s future.
For guidance on real estate matters during a divorce or help navigating your estate planning, contact Karly Chavez at Key Connections Real Estate. With expertise in helping clients during life’s transitions, Karly provides personalized and compassionate support. Reach out to Karly to ensure your real estate and estate planning needs are met seamlessly.
