Most people look forward to the day when they are able to retire. While this is often a wonderful turning point, a curve ball may come into the picture if you find yourself facing the divorce process.
Divorce after retirement calls for many things, including a review of your estate plan. If you neglect to take this step, your assets could end up in the wrong hands after your death.
Here are three of the most important things you can do if you find yourself in this position:
1. Alter your beneficiary designations
You will need to review any assets that let you name a beneficiary, such as a life insurance policy or retirement account. If you don't want to leave the asset to your ex-spouse, it's essential to immediately change the beneficiary designation.
2. Your will or living trust
It doesn't matter if you have a will or living trust, it goes without saying that you'll want to review it in great detail to determine if changes are necessary.
3. Powers of attorney
Do you have a power of attorney that grants your former partner power in the event that you become incapacitated? For example, a medical power of attorney allows someone to make health care decisions on your behalf if you are unable to do so.
If your ex-spouse is your the agent, you don't want to leave this as is any longer. If you do, this person could step in and be in charge of making important decisions if you are incapacitated.
There is a lot to consider when it comes to creating and managing an estate plan. Even if you have a plan in place, it doesn't mean that it can remain the same until the end of your life. Instead, it may require some changes over time, such as if you go through divorce.
As a retiree, keep one eye on your estate plan at all times. If you go through a major life change, don't wait to review your estate plan for changes that could benefit you and your family. Divorce at this point in your life is never welcomed, but it may be something you face nonetheless. Don't let this Top of Form cause you problems with respect t o your estate plan. Bottom of Form