If you go through the divorce process later in life, such as after you retire, it's imperative to make a variety of changes to your estate plan. Neglecting to do so could result in a number of challenges and mistakes, such as your ex-spouse receiving your assets upon your death.
Here are several changes to make to your estate plan after a gray divorce:
- Review your will and/or trust: For example, you may need to remove your ex-spouse as the executor of your will or trustee.
- Think about your children: If you have any children under the age of 18, think about creating a trust for them. Also, consider naming a guardian in your estate plan.
- Review your life insurance policies: Before your divorce, your spouse may be named as the beneficiary of your life insurance policy. If you don't change this designation after your divorce, your ex will still be in line to receive your death benefit. Contact your life insurance company to learn more about the process of changing your beneficiary.
- Think about the future: If you're interested in remarrying, take steps to avoid future complications. For example, you can create a prenuptial agreement to avoid unnecessary challenges if your next marriage ends in divorce.
Although you're busy with the divorce process and getting your life in order, you shouldn't hesitate to review your estate plan with the idea of making changes in a timely manner.
As you review your estate plan after divorce, you'll come to find that several adjustments are necessary in order to ensure that your ex-spouse is no longer part of it.