How Estate Planning May Be Affected by a Divorce Settlement
There are a number of life events that can have a major bearing on estate planning. Getting a divorce is one of those events. How may a settlement affect the planning that you already have in place, and how can you make sure that any changes to your estate are properly handled?
The Effects of Divorce on an Estate Plan
There are several elements of your estate planning that may be affected. Here are a few examples:
- Retirement Accounts – Because the beneficiary on a retirement account receives the money directly without it going through probate, you may need to change your beneficiary to avoid the money transferring to your ex.
- Trusts – Some property or other assets may have been part of a revocable living trust. However, if those assets were shared or had to be liquidated as a part of the divorce settlement, you will have to update the trust accordingly.
- Shared Accounts – Shared bank accounts transfer automatically on death, so you will need to close these accounts if they have not already been closed as a part of the settlement and open new bank
You may also need to make arrangements if you get remarried so that children from the previous marriage still receive any assets you wish for them to inherit. Otherwise, many things that may be put in your new mate’s name might pass directly without going through probate. This new spouse may feel no attachment to your children from another mate once you are gone, so you can’t leave it to chance.
Help in Arranging Complicated Estate Planning
Estate planning may at times be complicated, but it doesn’t have to be difficult. The patient estate planning attorneys at Petrov Law Firm can walk you through the process so that you can be confident your wishes will be carried out. To learn more, contact our San Diego, California attorneys at 619-344-0360.