Estate Planning and Divorce
One of the things that we do is create estate plans that are tailored to our clients lives. We try to build in flexibility, but there are certain life changes that are just not possible to plan around. Divorce is certainly one of those life changes.
For our Leawood Estate Planning clients that get a divorce, we walk them through all the new possibilities (including potential life changes ahead), plus asset changes that came from the divorce and then tailor a new plan around them.
See our Weebly page here.
See our Facebook page here.
Getting divorced? Get a new estate plan
What happens to your estate plan if you get divorced? In Arizona, divorce does not automatically remove your spouse or their family members from your estate documents; you must change your estate plan to remove unwanted beneficiaries. Failure to adjust these documents can result in unexpected transfers of property.
A current New York case illustrates the problems resulting from failure to update estate documents. The family of Robyn Lewis is fighting Ms. Lewis’s former in-laws over a home Ms. Lewis owned in Clayton, New York. Ms. Lewis executed a will in 1996, which named her husband as the primary beneficiary and her Father-in-law as the secondary beneficiary of the home. The parties divorced in 2007. Pursuant to New York law, Ms. Lewis’s ex-husband was automatically removed from her will after the divorce; however, the divorce did not disinherit her former Father-in-law. Ms. Lewis’s former Father-in-law presented a copy of the 1996 will to the probate court and claimed he was Ms. Lewis’s beneficiary. The court sided with Ms. Lewis’s former Father-in-law and awarded him the home. Ms. Lewis’s family appealed the decision. The case is still pending.
To avoid such hardships, stay current with your estate plans and make changes when necessary. Both spouses should seek independent advice and draft separate estate plans once the divorce is final. Make sure your attorney and other family members have copies of the new documents, including your will, powers of attorney and health care directives. Remember to properly revoke the previous version of your estate planning documents. Arizona law requires tearing up old documents and drafting new documents to revoke and replace the previous version.
You must also update any and all accounts that have a beneficiary designation. Insurance policies and retirement accounts will pass to the designated beneficiary regardless of what a Will provides. Change your trusts, retirement accounts, bank accounts, life insurance policies, and any annuities to remove any unwanted or unintended beneficiaries.
Once your divorce is final and the community property is divided, consult with an estate planning attorney and draft new documents. Making the appropriate changes now will prevent further heartbreak.
Estate Planning is all about peace of mind. What estate planning is everything about is finding the right tools to execute your basic requirements. What that really means is that we make use of the most innovative legal documents to properly implement your desires. We customize each and every strategy so that you get precisely what you desire. We do this making use of the most recent devices so that we can prepare a customized plan at the most affordable possible cost. Please call us today with any questions.
The Eastman Law Firm is an estate planning law firm. We concentrate on estate planning so that you can be assured that you are getting the most as much as date techniques. We train thoroughly so that we can offer the specific right match for your desires and desires. We do not force everybody into a single mold. Instead, we attempt and make certain that everyone is treated with the most personalized option that best fulfills their needs.
See our Weebly page here.