Divorce undeniably marks a significant turning point in life. For women navigating this challenging transition, recalibrating financial plans is often a top priority.
A frequently overlooked aspect of financial planning post-divorce, however, is estate planning. Many women find themselves uncertain about how to manage their estate effectively. But fear not, because we are here to guide you through the essential steps in estate planning after a divorce.
Don’t Procrastinate
First and foremost, revise your will immediately after your divorce. It’s crucial to remember that your ex-spouse might still be listed as a beneficiary or executor in your current will. This change can ensure that your assets don’t end up in the wrong hands.
Update Representatives
Next, remember to update your power of attorney. If your ex-spouse currently holds this role, consider whether you want this to continue. After a divorce, you have the freedom to appoint someone else who can better align with your current wishes and needs.
Beneficiary Designations
Life insurance policies also demand your attention. You likely named your former spouse as the beneficiary. Post-divorce, you may want to name your children, siblings, or parents instead. Make it a priority to review and update these policies as soon as possible.
Your retirement plans are another key area that needs revision. If you have individual retirement accounts (IRAs) or employer-sponsored plans, your ex-spouse may still be listed as your beneficiary. Speak with a financial advisor about making necessary adjustments.
Incapacity Planning
Estate planning after a divorce also encompasses planning for incapacity. This planning involves making decisions about who will manage your finances and make health care decisions for you if you become unable to do so. Carefully choose someone you trust, and update these directives.
Consider a Trust
Lastly, you may want to establish a trust as the centerpiece of your estate plan. This tool can ensure that your estate directly benefits your intended recipients, like your children. You may opt for a revocable living trust that allows for changes as your circumstances evolve.
Key Takeaways
To recap, these are the steps you need to take:
1. Revise your will.
2. Update your power of attorney.
3. Review and update life insurance policies.
4. Revise retirement plans.
5. Plan for incapacity.
6. Establish a trust.
Divorce, while challenging, offers a chance for women to seize control of their financial future. By implementing these estate planning strategies, you can protect your assets, uphold your wishes, and secure peace of mind.
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You found your way to this site because you are looking for information about estate planning, and you are definitely in the right place. We have many blog posts that you can explore, we add fresh, timely content on an ongoing basis, and there are other written resources.
All of our offerings are free of charge, and you can really build on your knowledge if you take advantage of our materials. In addition to the info you can find on the site, we conduct webinars on an ongoing basis.
They cover over the most important topics, and they are very well received by attendees. There is no charge to attend our webinars, but we do ask that you register in advance so we know how many people to expect. To learn more, head over to our estate planning webinar page.
Need Help Now?
If you have already learned enough to know that you would like to work with a Burbank, CA estate planning lawyer to develop a plan, we can help.
We know it can be disconcerting to speak with an attorney you have just met about personal and family matters. This is one of the reasons why people procrastinate about estate planning, and it is understandable.
However, when you choose our firm, you will find that we treat others the way that we would want to be treated if we were in their position. We will listen as you explain your objectives, make recommendations, and help you actualize a plan that suits your needs.
You can set the wheels in motion right now if you call us at 818-937-2335, and you can alternately use our contact form to send us a message.
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