Divorce is a significant change for the whole family. During and after divorce, a lot is going on, and important things can be overlooked. Something that often escapes people’s attention is estate planning.
Post-divorce, it’s important to consider how you can protect your children’s inheritance. Here are some key points to remember.
Updating your will
One of the first things you may want to do is update your will. Your former spouse was likely named as a beneficiary. They may even have been named as your executor. This means that they will be set to inherit some of your assets and oversee your estate.
Updating your will post-divorce means that it more accurately reflects your wishes. There should be no room for misinterpretation in your will.
Utilizing trusts
Post-divorce, you may want to consider setting up trusts for your children. Trusts have multiple benefits. First, unauthorized parties cannot access them. Your former spouse will have no control over your children’s inheritance if it’s in trusts. Trusts can also have very precise instructions. You can take steps to ensure that your children use the funds responsibly over a long period.
Guardianship designations
If you have minor children, custody arrangements will be set during the divorce. However, you may still want to name guardians. These are individuals tasked with looking after your children and managing their finances should something happen to both parents.
These are just three estate planning steps to consider post-divorce. It’s important not to neglect this area after your divorce to help ensure that your final wishes are honored in your new family dynamic. Seek legal guidance to find out more about the estate planning process.