Amid the complexities of divorce, it is important to review and update your Florida estate plan to align with the changes in your personal and financial circumstances. Failing to revisit and adjust your estate plan during this significant life event can lead to unintended consequences. It may, too, result in your assets undergoing distribution in undesirable ways.
Key aspects of your estate plan warrant careful consideration when navigating a divorce.
Life insurance policies, retirement accounts and payable-on-death or transfer-on-death designations on bank accounts all require careful scrutiny after a split. Failing to update these beneficiary designations can result in your assets passing to an ex-spouse unintentionally, which may contradict your current wishes. Reviewing and updating your will may also be necessary. Removing your ex-spouse and redefining the distribution of your assets ensures that your wishes align with your current circumstances.
Power of attorney and health care directives
During a divorce, you may want to reconsider who will act on your behalf in financial and health care matters if you become incapacitated. Reviewing and updating your power of attorney and health care directives allows you to appoint individuals you trust to manage your affairs.
Guardianship designations for minors
If you have minor children, your estate plan likely includes guardianship designations. A divorce may prompt a reassessment of these designations to ensure they remain appropriate. Changes in living situations, relationships or personal circumstances may influence your choice of guardians. Reviewing this aspect of your estate plan helps ensure you prioritize your children’s welfare in the event of unforeseen circumstances.
Per World Population Review, Florida’s divorce rate is the sixth-highest in the United States. Failing to update your estate plan after a split may lead to unnecessary hardships and avoidable legal challenges.