Beneficiaries for life insurance and assets automatically change after divorce. Instead of leaving money to your spouse, you will want to transfer those assets to your children. Many couples forget to update estate planning documents after a divorce. It is essential to make changes to your estate plan with any life event.
Estate Planning Checklist for Divorced Parents
Divorce is already a lot to go through with paperwork and admin. But have you thought about updating your estate plan? Or perhaps you have yet to create an estate plan and are ready to get started? Follow these tips to make sure you’ve checked all your boxes.
- Name a Guardian for Minor Children: If your co-parent is unfit or not your preferred guardian for your children, you can name a guardian in your estate plan. For example, if the child’s other parent does not want responsibility after your death or is not able to take on the children, you will be prepared with an appointed guardian.
- Update Beneficiaries of Life Insurance Plans: Your spouse is automatically your beneficiary to your life insurance plan. After divorce, you must change the names to your children or other loved ones.
- Appoint New Powers of Attorney: Who would you like to make medical decisions for you if you were unable? Who is able to act as your financial power of attorney and pay your bills if you are incapacitated? Choose a new medical power of attorney and financial power of attorney after divorce.
- Consider Changes with Remarriage: If you are divorced and remarrying, you can decide how your new spouse will play into your estate plan. The plan can be updated as many times as you need throughout your life. The key will be remembering to make the changes.
- Update Tax Planning: If you have a divorce settlement that requires more tax planning when it comes to passing down your assets to your children, set up a trust or include tax planning in your estate plan. A professional will know how to maximize your tax savings, so work with an estate planning lawyer today.
Don’t leave any page left unturned. Shoup Legal is here to help. We can guide you through your estate planning needs and ensure that everything is in order if the unexpected were to occur. Give us a call at (951) 455-4114 or emailing [email protected] to get started today!