If one creates an estate plan while they are married, they make it easier to pass assets to others upon death. Those who establish trusts and advance healthcare directives can avoid the time and money involved in probate, and they can avoid a controversy that comes when family can’t agree on decisions made concerning finances and health. However, a divorce can change all of these factors. Some obligations remain regardless of changes, but wills and other testamentary documents should be reviewed with an estate planning attorney from the Law Office Of Raoul J LeClerc Chico CA.
The Will
Many jurisdictions invalidate will provisions pertaining to ex-spouses, and alternate beneficiaries inherit those assets. If there is no alternate beneficiary, the property passes via state intestacy laws. However, not all jurisdictions do this, and relying on intestacy law can create uncertainty among heirs. The most effective thing to do is to revoke the old will and create a new one.
Think About a Prenuptial Agreement
If one remarries but has children from the previous marriage, an estate planning attorney with the Law Office Of Raoul J LeClerc Chico CA may advise them to consider creating a prenuptial agreement to keep the new spouse from inheriting the entire estate. Premarital agreements can protect children’s inheritance, and it can also protect the client in ways regarding debt and property division upon divorce.
POD and Life Insurance Accounts
POD (payable on death) accounts and life insurance policies should be revised to remove an ex-spouse as the beneficiary. Too many forget to do this, leaving the ex with a windfall and the intended beneficiaries with almost nothing. An estate plan can use a trust to hold the proceeds of a life insurance policy, to be held for named beneficiaries.
Guardianship of Children
If one has minor children, the will should name a guardian. If the other parent survives, they will naturally become the sole guardian, however. In cases involving unfit or abusive parents, one can attach a memo to the will to notify the court of the parent’s unfitness. The best time to Visit Website to resolve guardianship issues is while the estate planner is alive.
