The Effect Of Divorce On Your Estate Plan
If you previously drafted an “A/B” trust leaving all your assets to your spouse after your death, after your divorce you presumably will not want your ex to receive all your assets. What do you do? You cannot do nothing; your spouse would stand to receive all your assets despite your divorce. Hire San Diego Estate Planning Service for handling cases and providing quality services related to divorce or child custody.
You need a family law and estate planning attorney to undo and redo your estate plan.After your divorce, if you and your ex have minor children, you will still want to ensure that they are protected with a trust. But you probably do not want your ex to be the trustee. You can designate a trusted family member or friend to be the trustee.
Additionally, people often remarry and have additional children with the new spouse. Those children should also be accounted for in your new family trust.Married couples have certain tax advantages which can be exploited before and after the first spouse dies (for example, untaxed gifts to spouses during their lifetimes).
After divorce, you lose these advantages. You will need to employ different tax avoidance strategies in your reconfigured estate plan.Divorce attorneys are often aware of the potential issues with estate plans, but few practice in both areas of law.
A divorce attorney would likely recommend you change the beneficiary of your life insurance policy and retirement plan, and any other account or policy with a beneficiary designation. But as far as restructuring your estate plan to account for your divorce, you should contact an estate planning attorney.
Whether you’re already in the middle of a divorce, or contemplating one, by contacting family law and estate planning attorney Michael C. MacNeil, you will be able to address your legal needs.