Estate Planning After Divorce
6 Steps to Protect Your Future
After a divorce, it’s important to reassess your estate plan and ensure your assets and wishes are protected as you move into the next chapter. By taking action and updating, or creating a new estate plan after divorce, you can avoid unintended consequences.
The team at The Parents Estate Planning Law Firm has created this Guide to help you understand the important steps to take to ensure your estate plan aligns with your future goals.
Here are the steps you must take to make sure your estate plan reflects your current life and wishes:
1. Name Guardians for Your Kids
One of the most important steps when estate planning after divorce, is naming short and long term guardians. Long term guardians are the people who will raise, love and care for your kids until they are adults. Short term guardians, also known as First Responders, are the friends and neighbors close to your home who can stay with your kids until your long-term guardians arrive.. Make sure you carry a Family Emergency ID Card in your purse or wallet that lists the names and telephone numbers of your First Responders.
2. Make A New Will
Start by revoking your old will (tear it up or shred it) and making a new one. If you don’t already have a will, now is the best time to make one. A will is where you leave property to the people of your choice and name the person you want to handle your Estate.
3. Create A Living Trust
If you own a house or have more than $25,000 in the bank or investments, life insurance or retirement accounts, you want to have a living trust. A living trust keeps all of your assets private. It also makes it as easy as possible for your family to manage things after you’re gone. You can set up your living trust to protect your kids’ inheritance from being lost to divorce, creditors and lawsuits.
4. Update Your Health Care Proxy
Next, choose who will make health care decisions for you if you become incapacitated and cannot make decisions for yourself. Make sure to include language that authorizes your agents to obtain full access to your medical records.
5. Update Your Durable Power of Attorney
Name the people you want to make legal and financial decisions for you if you become incapacitated and cannot make decisions for yourself.
6. Change Your Beneficiary Designations
The sixth tip we have when estate planning after divorce is to update your beneficiaries. Many assets pass outside of a will – to your designated beneficiaries. Make sure to update your beneficiary designations for life insurance, retirement accounts, and bank.
If you need more wealth advice, or have questions about these, we encourage you to schedule your Family Wealth Planning Session with The Parents Estate Planning Law Firm at 978-263-6900!
And, if you have specific questions or need assistance with your divorce in Massachusetts, it’s always best to consult with an experienced family law attorney, like those at our firm, who can help guide you through the process based on your unique situation. Get started with us by scheduling a Free Discovery Call today!
Additionally, we offer FLAT FEE DRAFTING SERVICES. If you are looking for high-quality professional legal services that’s flexible for your budget. We invite you to explore our Tier Service Offerings.