Divorce significantly impacts estate planning, particularly when specific state laws come into play. Understanding how divorce might alter your existing estate plan is important to ensure your estate honors your wishes and distributes your assets according to your intentions.
Changes in beneficiary designations
One of the immediate effects of divorce is the need to review and possibly change beneficiary designations. In Maryland, the law automatically revokes any provisions in your will that favor your former spouse unless you explicitly state otherwise in the divorce agreement. This includes life insurance policies, retirement accounts, and other beneficiary-designated assets. Failing to update these designations could result in unintended consequences.
Revising wills and trusts
After divorce, revisiting your will and any established trusts is important. Maryland law treats any provisions in favor of a former spouse as if they predeceased you. As a result, your ex-spouse will not inherit any assets unless you mention them explicitly in a new will created post-divorce. If you have minor children, you may want to appoint a new guardian or trustee, especially if your ex-spouse no longer seems like the preferred choice.
Impact on powers of attorney
Divorce also affects powers of attorney. If you previously named your ex-spouse as your healthcare proxy or gave them durable power of attorney, those designations are automatically revoked upon divorce. You must appoint new individuals to these roles to avoid any legal complications or unwanted control by your former spouse in critical situations.
Moving forward
Navigating estate planning after divorce can be complex, but you must ensure that your assets and wishes are protected. By taking the time to assess your options, you can establish a secure and thoughtful plan that supports your long-term goals and priorities.