Divorce is increasingly common, and so is remarriage. If you’ve gone through a divorce and have remarried, it’s crucial to understand how these changes can impact your estate planning. Whether you’ve already planned for your estate or are considering it now, let’s explore how a new marriage could affect your plans and what steps you need to take to ensure everything is up-to-date and aligns with your current situation.
Understand Your Existing Estate Plan
First things first: how will your current estate plan work if you or your ex-spouse passes away? In many states, the law automatically assumes that you wouldn’t want your ex-spouse to inherit anything from you. Even if your will, trust, or life insurance policy names an ex-spouse as a beneficiary, state law might prevent them from receiving anything from your estate.
However, this isn’t the case in all states. It’s essential to review your estate plan and beneficiary designations for your life insurance and retirement accounts. Make sure that an ex-spouse isn’t listed as a beneficiary unless your divorce settlement specifically requires it. If you want to ensure your ex-spouse benefits from your estate, consult with an attorney to make sure your wishes are met according to state laws.
Don’t forget to update beneficiary designations if you want your current spouse or other family members to be the beneficiaries. If you’re considering designating beneficiaries other than your current spouse, make sure these updates are reflected in your estate documents and financial records.
Consider the Impact on Government and Pension Benefits
Remarriage can also impact your eligibility for certain government and pension benefits. For example, your ability to qualify for Veteran’s Administration benefits, Social Security benefits, or survivor’s pension benefits from a deceased spouse’s employer might be affected. Review these aspects to ensure your estate plan reflects your current situation and expectations.
How Your Current Spouse Affects Your Estate Plan
If you and your current spouse have opted for a “what’s mine is mine, and what’s yours is yours” approach to property, it’s crucial to understand how your state handles property division at the death of a spouse. Even if you’ve crafted an estate plan to keep property separate from your spouse, many states have laws that could override your plans to ensure a surviving spouse isn’t entirely disinherited.
If you do want your current spouse to receive some or all of your property, make sure your estate planning documents clearly communicate this. Clear communication can help preserve good relations between your children from a previous marriage and your current spouse, reducing potential conflicts about how your estate is divided.
When Beneficiaries and Fiduciaries Remarry
Remarriage can also disrupt estate planning when a beneficiary or fiduciary remarries. For example, if a beneficiary remarries and their new spouse has financial issues, it might be wise to update your estate plan to protect the inheritance you’ve planned for them. Consider specifying that any inheritance must be held in an asset protection trust to shield it from creditors or divorce settlements.
Similarly, if you’ve named a married couple as guardians for your minor children, you should update your estate plan if they divorce and remarry. Failing to update guardianship nominations could lead to disputes over custody, especially if significant assets are involved.
Learn from Real-Life Cases
A Texas case recently highlighted the importance of updating estate plans after a beneficiary remarries. In this case, a mother’s trust provided for her son and his “spouse.” When the son divorced and remarried, the trust still referred to the ex-spouse, leading to a legal battle. Clear and updated estate planning documents could have prevented this costly and contentious situation.
We Can Help
Remarriage is a significant life event that requires careful consideration of your estate plan. Working with an experienced estate planning attorney ensures your documents reflect your current situation and intentions. If you need help updating your estate plan or addressing any issues related to remarriage, please contact us. We’re here to help you navigate these changes and ensure your estate plan works for you and your family exactly as you intend.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.