Becoming newly single brings many changes. Amid the emotional and logistical adjustments, estate planning might not be top of mind.
However, it’s important to address your estate plan during this transitional phase. Updating or creating an estate plan ensures your assets are protected and your wishes are honored.
Assess Your Current Financial Situation
The first step is to evaluate your finances. This includes understanding your assets, debts, income, and expenses. Knowing where you stand financially helps you make informed decisions about your estate.
Update Beneficiary Designations
Beneficiary designations on accounts like life insurance policies and retirement plans override wills. It’s essential to review and update these immediately. If your ex-partner is still listed, they could inherit assets contrary to your current wishes.
Contact financial institutions to change beneficiaries. You might choose children, other family members, or charities. Ensuring these designations reflect your intentions prevents future disputes and complications.
Create or Revise Your Will
A will outlines how you want your assets distributed after your death. If you had a joint will or none at all, now is the time to create or revise it. This document allows you to specify who inherits your property and possessions.
Without a valid will, state laws determine asset distribution. This could result in outcomes you don’t desire. Working with an attorney can help you draft a will that accurately reflects your wishes.
Consider a Trust for Added Control
Trusts offer more control over how and when your assets are distributed. They can provide for beneficiaries over time or under certain conditions. This is especially useful if you have minor children or want to protect assets from potential creditors.
There are different types of trusts to consider. A revocable living trust allows you to make changes as your circumstances evolve. An irrevocable trust offers tax benefits and asset protection but cannot be altered easily.
Consult with a legal professional to determine the best option for your situation.
Appoint a Guardian for Minor Children
If you have children under 18, appointing a guardian is crucial. This ensures that someone you trust will care for them if you’re unable to do so. Without a designated guardian, the court will decide who takes custody, which may not align with your preferences.
Discuss this responsibility with the person you intend to appoint. Make sure they are willing and able to take on this role. Include the guardianship designation in your will to make it legally binding.
Update Power of Attorney Documents
Power of attorney documents grant someone the authority to make decisions on your behalf. This includes financial and medical decisions if you’re incapacitated. Review and update these documents to ensure the appointed person aligns with your current trust and relationship status.
Choose someone reliable who understands your values and wishes. Clearly outline the extent of their authority. This prevents misunderstandings and ensures your affairs are handled according to your preferences.
Plan for Long-Term Care
Long-term care planning is essential, especially if you don’t have a partner to rely on. Planning ahead reduces the financial and emotional burden on your family. It ensures you receive the care you need without depleting your assets, and we can show you how to do it.
Organize Important Documents
Keep all estate planning documents organized and accessible. This includes wills, trusts, insurance policies, and power of attorney forms. Inform a trusted individual about the location of these documents.
Having everything in order simplifies matters for your loved ones. It ensures that your wishes are followed without unnecessary delays or confusion.
Scheduling a Consultation Today!
We can help you develop a tailor-made plan that is ideal in light of your current life situation. You can schedule a consultation at our Glastonbury or Westport, CT estate planning offices if you call us at 860-548-1000.
There is also a contact form on this site you can use if you would rather send us a message
