A Colorado divorce can have far-reaching implications, including on your estate plan. Thus, it is important to revisit and update your estate plan to reflect your new circumstances and ensure your wishes still come to fruition.
Failing to make necessary changes could result in unintended consequences down the line.
Beneficiaries and heirs
Be sure to take a second look at your beneficiaries and heirs amid divorce. Your current spouse may be a beneficiary on various accounts or in your will. However, you may now wish to remove this individual or adjust his or her share of your estate. Similarly, if you had designated your spouse as the executor of your will or as a trustee for any trusts, you may want to appoint someone else.
Power of attorney and health care directives
During a divorce, be sure to review and potentially update your power of attorney documents and health care directives. These legal documents appoint people to make financial and medical decisions on your behalf if you become incapacitated. You may no longer want your soon-to-be ex-spouse to have these responsibilities, so you may need to designate new agents whom you trust to act in your best interests.
Guardianship designations
If you have minor children, your estate plan likely includes provisions for their care in the event of your passing. This may include naming a guardian to raise your children if you and your spouse are unable to do so. Given the changes in your family dynamics due to divorce, you may want to reconsider your choice of guardian and ensure it aligns with your current wishes and circumstances.
Taking the time to make these necessary adjustments can provide peace of mind and protect your interests in the future.