The process of a divorce is complex and overwhelming. There are so many nuances and steps that must be taken, and one of the most important ones is to update your estate plans. It is critical to update your estate plan after a divorce to ensure that your former spouse does not have authority over your assets anymore. Contact our experienced New York estate planning attorneys today to get started on yours.

Why Updating Your Estate Plan After Divorce Is Essential in NY

After your divorce is finalized in Putnam County, you may be excited to move on from this difficult chapter of your life. However, before you can fully close the book, it’s necessary to ensure you’ve made all necessary changes to your estate plan. It is imperative to understand that divorce does not automatically update estate planning documents. As such, failure to modify your plans can have serious, long-term consequences. 

Why Spouses Are Often in Estate Plans

In most cases, a person’s spouse is in charge of handling the administration of the estate plan, while also being the person’s healthcare proxy. Additionally, spouses typically have joint assets like wills or trusts. 

Similarly, many spouses leave a considerable portion of, if not the entirety of, their estate to their spouse. In some instances, this can be a means of delaying estate taxes, while in other cases, it is simply because that is what they wish. It is important to understand that, under NY Est Pow & Trusts L § 5-1.4, these designations remain active under New York law unless they are formally changed. 

How Your Ex Could Still Have Decision-Making Power

If you fail to update your estate planning documents, your ex-spouse can hold a considerable amount of power over your estate. This means they may be entitled to make important financial, medical, and legal decisions over you and your estate. Similarly, they may inherit assets that you no longer wish for them to obtain. This means that your intended heirs may be left without the assets you intend for them to receive following your passing. 

What Estate Planning Documents Should You Update After a Divorce?

If you are interested in modifying your estate plan after a divorce in New York, it is important to understand that there are several documents that need to be updated. 

Wills

In the event that a considerable portion of your estate is left to your ex-spouse, or you created a mirror will with them, it is in your best interest to revoke your current will and create a new one. Though minor updates can be made by adding codicils, a substantial change often requires a complete revision of these documents. 

Trust Agreements

As with a will, you should remove your ex as the trustee or beneficiary of any trust funds. You should also update the instructions regarding the distribution of assets. 

Healthcare Proxy

A healthcare proxy is a person of your choosing appointed to make medical decisions based on your wishes. If this is your ex-spouse, failure to update this document means they can be responsible for making life-or-death decisions. As such, you should choose a new, trustworthy individual to appoint to this role.

Power of Attorney

Your power of attorney has the ability to make important legal and financial decisions on your behalf under certain circumstances. As such, if your ex-spouse is your current power of attorney, you should revoke this designation and appoint someone new to the role. 

Beneficiary Designation

Many different accounts, like retirement accounts, investment accounts, life insurance policies, and Social Security, will allow you to name a beneficiary to obtain your benefits following your passing. These designations override the information in your will, so if your ex-spouse is the named beneficiary, you should update these documents to reflect your current wishes. 

If you have questions regarding your documents, do not hesitate to reach out to our firm today to gain clarification and guidance through this process.

Update Assets Lost or Gained in the Divorce

When you go through a divorce, your marital assets will be divided in accordance with your prenuptial or postnuptial agreement, or if you did not establish one, New York’s equitable distribution laws. As such, you should update your estate plan in accordance with the assets lost in the divorce and post-divorce acquisitions. 

Remove Assets Awarded to Your Ex

If your ex-spouse obtained any of the following parts of your Putnam County divorce decree, you should update your plan to remove these from your documents:

  • Real estate
  • Bank or investment accounts
  • Cars
  • Personal property

Add Newly Obtained Assets

However, following your divorce, you may acquire new assets that should be included in your estate plan. Failure to include new property can result in it being considered intestate property. As such, it will be distributed under New York’s intestate line of succession, even if you have a will in place. Common assets you may want to include are as follows:

  • New real estate
  • Post-divorce investments
  • New bank account

When Should I Update My Estate Plan After a Divorce?

If you are going through a divorce, the last thing you may want to think about is more legal paperwork. Though you may want to take a break between your divorce and updating your estate planning documents, this is not recommended. 

Why Timing Matters After a Divorce

If you are in the process of finalizing your divorce, it’s in your best interest to update your estate plan immediately after the final judgment is issued. This can help prevent accidental gaps in your inheritance instructions or authority over important decisions. The sooner you update your documents, the more peace of mind you can have for the future. 

Contact Our Putnam County Estate Planning Firm

Going through a divorce is incredibly difficult and stressful. As such, learning that you need to take additional legal action can turn this process downright overwhelming. As such, if you need assistance updating your estate plan, the Law Office of Andres D. Gil, PLLC can help. We can walk you through this process to ensure that your plans reflect your wishes so you can have peace of mind for the future. Do not hesitate to contact our experienced firm today.