Divorce comes with significant implications not only for your future but also for the future of your assets and dependents. As such, it is critical that you review and revise your estate plan as soon as you decide to dissolve your marriage.
Here are four updates you need to make on your estate plan during or immediately after a divorce:
1. Your will
According to Texas law, the court may not prohibit you from executing a new will, revoking, or executing a codicil to an existing will. Your spouse should be removed as both an heir and as executor as soon as possible. (If you die before your divorce is final, however, your spouse may still retain some inheritance rights no matter what your will says.)
2. Your power of attorney
It is important that you update your power of attorney (POA) as soon as you decide to divorce. This way, you will be able to let someone you know and trust have control over your finances.
3. Your medical power of attorney
Without an updated power medical power of attorney, your ex might be the one who makes critical medical decisions on your behalf should you be incapacitated. Unless you’ve retained a close relationship with your spouse despite your marital problems, you probably want someone else making those calls.
4. Your trust
If you appointed your spouse as a trustee over your estate, you might want to review this decision. If your spouse is a beneficiary of a trust you established, you may also need to review its terms to see what changes are possible.
Your estate plan will definitely change due to a divorce. Knowing the components of your estate plan that you need to review and revise can give you peace of mind knowing that you are in control of your future and assets.