How Divorce Affects Your Estate Plan
Finder Law Serves Clients Across Jefferson City, Columbia, and Central Missouri
When spouses separate, there are many assets that will need to be divided. On top of that, divorce brings with it lots of stress emotionally & financially. One thing that can sometimes get overlooked in all the chaos is how your divorce may require an update to your estate planning.
Trusts
If you have a trust, it’s important to determine if it’s an Irrevocable Trust a Revocable Trust. Most trusts are Revocable, meaning they can be altered during one’s lifetime. In that case, you can simply change the name of the Trustee on the document to name someone other than your spouse. However, if you have an Irrevocable Trust, that could prove difficult, if not impossible. Irrevocable Trusts sometimes have tax benefits, but can only be changed by court approval, as well as the approval of all beneficiaries. Unless your spouse signs off on the removal as beneficiary, you may be stuck.
Understanding the difference between these types of trusts is essential and something your attorney should discuss with you prior to signing. Unless you incredible wealth, it is rarely advisable to create an Irrevocable Trust.

Powers of Attorney
Most estate planning includes documents called Medical Powers of Attorney and Durable Powers of Attorney. These allow someone to make medical and financial decisions on your behalf if you are incapacitated. Usually, spouses are given that designation. After a divorce, you will likely want to name someone else to do that for you.

Beneficiary Designations
It is common to name beneficiaries on car titles, home titles, retirement accounts, etc. When you get divorced, some of these are automatically removed, but you will need to ensure you have a contingent beneficiary to take their place. To make sure everything is changed properly, you will want an attorney to review all your accounts, titles, etc. so nothing is missed or forgotten.
Custody
If you were to pass away prior to your children becoming adults, you may want to consider naming them in your trust. A trust is the only want to protect their assets from your spouse until your children are old enough to control the funds themselves. Without a trust, it is likely your ex will end up with access to that money and can decide what they want to do with it.
Have an Attorney Review Your Estate Plan
If you are getting divorced, you should probably consider drafting new estate planning documents. Sometimes you can use the same attorney for your divorce and your estate plan; however, it will require a separate payment. Having an attorney look over your documents will protect your assets and provide you with peace of mind. Every situation is unique, so working with an experienced attorney is vital. Daniel Finder at Finder Law, LLC is both a family law and estate planning attorney. He has the expertise and knowledge to walk you through both of these important legal matters and advise you of how best to proceed.
