Common Estate Planning Mistakes to Avoid After Divorce
A divorce can change many aspects of your life on a personal, financial and legal level. When it comes to the legal side of getting divorced, it is important to recognize the effects it can have on your estate plan. Protect your hard-earned assets far into the future by avoiding the most common mistakes divorcees make when planning their estates. Adjust your estate plan effectively with the assistance of a St. Louis estate planning lawyer, ensuring minimized tax obligations after your divorce.
Forgetting to Update Your Will
One or multiple parts of your estate plan most likely have your now ex-spouse listed in important roles. This may include your will. If your will still names your ex-spouse as a beneficiary who will receive your assets or property in the event of your death, you may wish to update this. You should also choose a new executor or administrator of your will and estate plan if you assigned your ex-spouse to this position.
Failing to Remove Your Ex From Trusts
If your estate plan includes one or more trusts with your ex-spouse on them, remember to update these documents after your divorce. If your ex-spouse remains named as a trustee or beneficiary, this could benefit your ex more than the other members of your family in the event that you die or become incapacitated. Update your trust documents as soon as possible to remove your ex-spouse from any roles, and ensure that your beneficiaries are the correct individuals.
Leaving Your Ex as Your Health Care Proxy or Power of Attorney
Unless you want your ex-spouse to remain your health care proxy – the person you have chosen to make critical medical decisions for you if you become incapacitated – you will need to update this part of your estate plan. The same is true if your ex-spouse is named as a power of attorney and has the authority to make other decisions for you, including regarding important legal and financial matters.
Failing to Update Your Life Insurance Policy
Your life insurance documents need to be updated to remove your ex-spouse as a beneficiary on your plan. Otherwise, your ex-spouse may still receive your life insurance payout if you pass away. Be sure to contact your life insurance policy provider to update your plan to reflect your new wishes. Check the terms of your divorce settlement beforehand, as it may have terms you must follow regarding your life insurance policy.
Ignoring Potential Financial implications
Don’t ignore the impact your divorce may have on your financial situation. This includes how your assets will be taxed and how payments such as child support and alimony may impact you. You may be in a different tax bracket, and your gifts and inheritances may be taxed differently, as well. Make adjustments to your estate plan accordingly with help from a St. Louis. estate planning lawyer can help you minimize your tax obligations post-divorce.
Planning Your Estate Without Legal Guidance
Trying to navigate complex estate-planning issues on your own after a divorce in Missouri is one of the biggest mistakes you can make. Work with an attorney with years of experience creating and managing estate plans to make sure your plan is up to date according to your present situation and goals for the future. An attorney will help you avoid common mistakes that could lead to complications down the road.
To request a free consultation with an experienced estate planning attorney in St. Louis, contact TdD Attorneys at Law.