Divorcing later in life is more than just the end of a chapter; it marks the beginning of a whole new story. After decades of marriage, it almost feels like you’re starting over.
As you enter this new stage of your life, you bring experience, wisdom and lifelong friends and family connections. And while some things will remain the same, others need to be changed, such as your estate plan.
Your existing estate plan may no longer reflect your wishes
Many people create an estate plan while they are married and their children are young. It’s then put in a safe place and never revisited.
However, after a divorce, your wishes may change significantly. You may want to assign important roles to your children, siblings or trusted friends that your spouse previously held. Reviewing your estate plan ensures that your documents reflect your current wishes rather than the decisions you made years earlier.
While Ohio law automatically revokes certain provisions for former spouses after a divorce, relying on those automatic rules is not a substitute for actually reviewing and updating your documents. A revised will provides clarity and helps reduce the potential for confusion or disputes among family members.
Another area to review is your beneficiary designations. Unlike a will, a divorce doesn’t automatically remove your ex-spouse as a beneficiary to some of your financial accounts. Furthermore, regardless of what your estate planning documents say, those assets will pass directly to the named beneficiary. This includes:
- Retirement accounts
- Life insurance policies
- Transfer-on-death investment accounts
- Payable-on-death bank accounts
It’s essential to review these documents to ensure they are passed on to the intended recipients.
Another area that needs review is your powers of attorney. Most spouses name each other as financial and healthcare agents. However, after a divorce, you may no longer want your former spouse making decisions on your behalf. Therefore, you will want to review your:
- Financial power of attorney
- Healthcare power of attorney
- Advanced healthcare directives
Gray divorces represent a new beginning; your estate plan should reflect that. Working with someone experienced in estate planning can help ensure your documents accurately reflect your wishes, comply with the law and preserve your legacy as you move into the next stage of your life.