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By Eric Kallio
Founding Attorney

Life changes, such as marriage and divorce, significantly impact your estate plan. Whether you’re newly married, considering a prenuptial agreement, or going through a divorce, it’s essential to adjust your estate plan to reflect your new circumstances.

Marriage: Updating Your Estate Plan for Your New Life

Marriage is a joyous occasion that often prompts many changes, including the need to revisit your estate plan. If you’re newly married, here are the key areas that may need your attention:

Updating Beneficiaries and Guardianships

One of the first things to address is updating the beneficiaries on your will, life insurance policies, and retirement accounts. By naming your spouse as a primary beneficiary, you ensure that your spouse receives the proceeds of your insurance policies and the rest of your assets. Additionally, if you have children from a previous relationship, you’ll need to clearly outline your wishes about what assets should go to them to avoid any potential conflicts.

Creating or Revising a Will

If you didn’t have a will before marriage, now is the time to create one. A will helps outline how you want your assets divided and ensures that your spouse, minor children, and any stepchildren are protected. If you already have a will, review and revise it to include your spouse and to reflect any joint property or assets acquired through marriage.

Establishing Powers of Attorney and Health Care Directives

Marriage usually means entrusting your spouse with critical decisions, especially during emergencies. Setting up powers of attorney and health care directives allows your spouse to make financial and medical decisions on your behalf if you’re incapacitated. Without these documents, your spouse might face legal hurdles during times of crisis.

Reviewing Joint Property and Community Property Laws

Louisiana’s community property laws mean that most assets acquired during marriage are owned equally by both spouses. This legal framework impacts how property is distributed upon death. Understanding how these laws affect your estate plan can inform your decisions about asset division and protection.

Divorce: Revisiting Your Estate Plan After Separation

Divorce brings significant changes, and those should be reflected in your estate plan. It’s crucial to act swiftly to revise your plan to ensure your wishes are met and to prevent an ex-spouse from receiving unintended benefits.

Changing  Beneficiaries

After divorce, updating your beneficiaries should be a top priority. Many individuals forget to change the beneficiaries on life insurance policies, retirement accounts, and payable-on-death accounts, which could result in the ex-spouse receiving those funds even after divorce. Ensure that all beneficiary designations are updated to reflect your new wishes.

Revising Your Will and Trusts

Divorce necessitates revising your will and any existing trusts. Remove your ex-spouse from positions of control, such as executor or trustee, and update your asset distribution plan. If you have children, you may also want to establish trusts to protect their inheritance and ensure it isn’t mismanaged.

Updating Powers of Attorney and Health Care Directives

If your ex-spouse is currently named in your powers of attorney or health care directives, these documents need immediate revision. Failing to update these documents can lead to your ex-spouse making critical decisions about your finances or medical care, which is likely not what you want after a divorce.

Reassessing Guardianship Provisions for Minor Children

Divorce can affect guardianship decisions, particularly if you have minor children from a previous marriage. Ensure that your updated estate plan reflects your current wishes regarding who should care for your minor children if you are no longer able to do so. Clarifying these details now can help avoid legal disputes later.

Keep Your Estate Plan Current

Marriage and divorce are transformative life events that necessitate taking a close look at your estate plan. Regularly reviewing and updating your plan ensures that it aligns with your current life circumstances and protects and provides for your loved ones according to your wishes. If you’ve recently married or divorced, consult an experienced estate planning attorney at Kallio Law Firm, LLC, to make the necessary updates and secure your future.

About the Author
Attorney Eric Kallio is the founder of Kallio Law, focusing his practice on estate planning, wills, successions, business law, tax law, aviation law, and veterans benefit law. Eric brings the depth of his professional and educational experience to bear for his clients, advocating passionately on their behalf.