An estate plan generally reflects an individual’s resources and their family circumstances. Divorced or widowed individuals who remarry likely have drastically different needs than they did before solemnizing their new relationship.
Reviewing and updating estate planning documents can help remarried individuals protect themselves, their children and their new spouses from major complications after they die or in the event of a medical emergency. There are multiple important estate planning updates necessary when people remarry, with the three below being among the most critical.
1. Modifying testamentary instruments
Whether the allocation of property after a person dies relies on a trust or a will, they very likely need to update those documents to better reflect their current family circumstances. Removing deceased beneficiaries and people no longer in close relationships with the testator is generally necessary.
The scope of an individual’s holdings may have changed due to the end of a prior marriage, an inheritance or remarriage. They may have different assets to address. Even who they nominate as a personal representative or trustee may change due to a shift in their family dynamics.
2. Updating beneficiary designations
Life insurance policies and financial accounts can pass directly to designated beneficiaries without passing through probate court in most cases. While state statutes do allow for the automatic termination of a beneficiary designation for a former spouse, insurance companies may not be aware of an individual’s change in marital status.
As such, making the effort to update life insurance beneficiary designations promptly after remarrying is of the utmost importance. Any transfer-on-death beneficiary designations naming an ex-spouse as a beneficiary may also require correction to ensure that appropriate beneficiaries assume control over those financial resources.
3. Correcting advance directives
Powers of attorney, living wills and health care surrogate designations outline who should control an individual’s finances and medical decisions when they cannot act on their own behalf. Updating these documents to ensure that a former spouse does not have that authority may be of the utmost importance.
Working with an experienced estate planning attorney can help people ensure that appropriate protections are in place for their spouses and their property in the event of an emergency or their passing. Remarriage is one of several major life events that may necessitate a significant adjustment of existing estate planning paperwork.