Updating Will and Estate Planning Documents After a DivorceMarybeth Sampsel
After a divorce is finalized in Montana and a dissolution decree entered, many clients forget that there are other financial issues that need to be dealt with. Here are a few financial issues you should consider:
Who is the pay on death beneficiary for my bank account, life insurance policy or retirement account?
Remember, updating your will or getting divorced does not automatically change the beneficiary designation. You have to be proactive.
If you want to make sure those accounts do not designate your former spouse, contact your bank and insurance underwriters to make the necessary changes.
Do you have a will and have you updated the will to reflect the changes in your life?
I always recommend clients do some estate planning, even if they do not think it is necessary. Anytime there are major life changes, including divorce, the birth of a child, or death of a family member, clients should revisit that document and make any needed changes.
Along with a will, clients should also have:
- Power of Attorney for Health Care
- Health Care Directive or Living Will
- Durable Power of Attorney
Do you need to set up a trust account for your children?
Often times, clients do not want their children to inherit large sums of money all at once. In order to address that concern, many clients set up a trust to handle the funds or property until the children are older. The largest sum is often proceeds of a life insurance policy. In order to transfer the funds to a trust, you will need to set up a trust and name the children’s trust as the beneficiary.