An estate plan is not something you sign and file away, never to look at again. Life happens, and things change. Your estate plan needs to reflect that. Life changes can include children, moving, deaths in the family, and divorce.
Think about it. You may have written an estate plan with your first spouse, assuming that the “till death do you part thing” made it so you never would need to even consider changing it. That idea is a nice one, but it does not always pan out. Say you get divorced but never revise your estate plan. You get remarried years later and assume that your new spouse will receive all of your property, but you never get around to making sure he or she is covered. However, if something happens to you and your spouse finds out later that all of your property is going to your first spouse and not him or her, that piece of news is not going to be pleasant. It happens all the time unfortunately, and the reason for this is people never get around to modifying their plans.
Your will should not be the only document updated either. Make sure your new spouse is on your power of attorney and healthcare directives. Your previous spouse may not want to be held responsible for your medical decisions, but if she or he is listed as your first point of contact, his or her hands may be tied unless you have a logical successor to that appointment. In addition to documents, make sure your retirement accounts and life insurance policies are updated as well. Speak with your financial advisor to ensure that your current plan reflects your current life situation.
Do you need a completely new document or an only amendment? You may only need a codicil, which serves as an amendment to your will where you state that your previous appointment of your spouse as beneficiary should be removed and replaced with new language. If you have a revocable living trust, this modification is referred to as an amendment to the trust. This change is easy and can be done for a smaller flat fee. If, however, mention of your previous spouse is scattered throughout your estate plan and is quite complex, you may need to revoke your previous estate plan and replace with a new set of documents. We can help you determine which choice is best for you.
In addition to the basic estate document review, also be sure to adjust your beneficiaries on your various retirement accounts and life insurance policies accordingly. Keep in mind, whatever has been agreed in your divorce decree or settlement agreement should govern the beneficiaries, but if your divorce documents did not state whether your spouse needed to remain a beneficiary, be sure to modify these, as well.
At Sullivan Law, we offer estate planning packages at a flat and reasonable fee. We also offer free consultations to discuss what your needs are, what you would like to do, and how that can be best accomplished. Everyone’s needs are different, and your wishes should be clearly listed and understood.
Call us at 248.917.1351 or email at asullivan@sullivanlawonline.com to schedule your free consultation today. We look forward to working with you!