In a Florida divorce, people will automatically think about child custody, child support, spousal support and property division. It is easy to forget other areas that also need to be addressed. Specifically, that refers to estate plans drawn up during the marriage.
Forgetting to update estate plans after a divorce could be a mistake
During the divorce, people need to be alert regarding their long-term preparation. When there is an estate plan, it should be scrutinized to decide if changes are needed.
Even in amicable divorces, people frequently want to change their will to account for the new circumstances to prevent a former spouse from inheriting assets the testator would not want them to have. If there is a trust, the former spouse could have been named as the trustee. Since this is a vast responsibility with extensive powers, changing it to name another person may be advisable.
Insurance policies can be a source of discord if a person forgets to change them after the divorce. There is a designated beneficiary on a life insurance policy and they will get the proceeds. That could be problematic if it is not changed. Children or a new spouse could find that the beneficiary is the former spouse because it was not updated.
A power of attorney gives a person great powers to oversee another person’s life personally and financially. This too might need to be updated to name another agent after a divorce.
Key documents need attention after a divorce
Divorce is a life-changing event. It is easy to get caught up in preparing for a new landscape after a divorce and to let essential documents remain intact when they should be reassessed. It is wise to look at these documents and act quickly to avoid complications.