Estate Planning for Divorce and Remarriage

 Posted on October 22,2020 in Estate Planning Blog

In life, there are few absolute truths; the fact that things change is one of them. When such change includes divorce or remarriage, other aspects of your life—including your estate plan—must be adjusted to accommodate. Failure to do so can result in negative consequences, particularly for those who stand to inherit. So, if you are planning a major life change, it is important to know how you can address it accordingly in your Illinois estate plan.

Estate Planning After a Divorce

After a divorce, all of your financial documents must be reviewed and updated as needed. This, of course, includes all aspects of your estate plan, including your health or financial powers of attorney, beneficiaries, life insurance policies, and retirement accounts. Keep in mind, however, that these changes should be done according to the agreement made during your divorce. In some instances, the judge may rule that your ex-spouse remains a beneficiary on certain policies or accounts—possibly as security for maintenance or child support payments. Clarify these agreements whenever possible, and always request written confirmation from insurance companies or life insurance companies to ensure they have received your change requests.

Also, remember to make considerations regarding any family members of your ex-spouse. Under Illinois law, any provisions in your will and many other estate planning documents that pertain to your spouse are automatically voided when your divorce is finalized. However, this is true for your spouse only. Any provisions that you made in your estate plan regarding your spouse’s family will remain in effect until you change them. Failure to do so could mean that your in-laws will inherit a portion of your estate upon your death, and there will be little anyone can do about it at that point.

Estate Planning for a Second Marriage

At the time of divorce, a second love probably seemed rather unlikely. Yet more and more people are remarrying these days (due, in part, to longer lives and high divorce rates). If you are one of the fortunate and lucky in love, then your estate plan needs may be rather complex. This is especially true for those that must retain certain assets for their former spouse or any children from their previous marriage. With the help of proper tools, resources, and legal advice, a creative solution can be found. Your estate plan can be customized to protect the inheritance rights of your children, your ex-spouse (as applicable), and anyone else to whom you wish to give a portion of your estate.

Our Lombard Estate Planning Lawyers Can Help

With decades of experience in both family law and estate planning, the team at A. Traub & Associates is ready and willing to help you update your estate plan to keep up with your changing life circumstances. Knowledgeable and committed to crafting creative, working solutions for divorce and second-marriage estate plans, we provide personalized service and high-quality legal counsel. To learn more, schedule a confidential initial consultation with a Lombard estate planning attorney at our firm. Call 630-426-0196 today.

Sources:

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2104&ChapterID=60

https://www.cnbc.com/2019/01/17/estate-planning-for-second-marriages-when-you-have-kids.html