Starting over after divorce is difficult. You must adjust to a new way of living and learn to be independent again. Divorce often involves mental and emotional turmoil, but it is important to not neglect practical matters during this time.
Often, this means reevaluating your financial situation. One aspect which could be overlooked is a revision of your estate plan. Divorce can impact your estate plan in Illinois, making an update of your estate plan necessary.
The general idea behind updating an estate plan is to remove your former spouse from your estate planning documents. Once you are divorced, you likely do not want your former spouse to remain an heir or beneficiary to your assets.
Illinois law’s automatic revocation for wills
Fortunately, Illinois law automatically revokes any provisions in your will that benefit your former spouse. However, this revocation only applies to your will. It does not apply to any other estate planning documents such as powers of attorney, beneficiary designations or trusts.
Failing to update these documents after divorce could place you in a bad position, allowing your former spouse to potentially have the power to make major decisions about your finances and health.
Although any provisions of your will favoring your former spouse will be automatically revoked by law, it is still a good idea to review your will. Make any modifications necessary to remove and exclude your former spouse as an heir or beneficiary of your assets. If your former spouse was your chosen executor, you may want to choose a new executor, as well.
Review guardian provisions if you have children and determine if changes are needed. If your chosen guardians are members of your former spouse’s family, consider changing them.
Although you might still be on good terms with your former in-laws, situations can change, and being on good terms is different than trusting them to take care of your children if you cannot.
Reviewing and updating other estate planning documents
If you have a living trust, you might want to remove your former spouse as a trustee or beneficiary. Note that this can generally only be accomplished with a revocable living trust. Achieving this with an irrevocable living trust could be more complicated.
Illinois allows you to create medical and financial powers of attorney. Medical power of attorney allows someone to make medical decisions for you if you become incapacitated, such as deciding whether to keep you on life support.
Financial power of attorney allows someone to make financial decisions for you if you are incapacitated, such as paying bills or running a business. If you had appointed your former spouse as the person to make these decisions, you should update these documents to appoint someone else.
Review any other documents that contain beneficiary designations, such as bank accounts or life insurance policies. Ensure your former spouse is removed and new beneficiaries are named.
Estate planning after divorce is a careful process that requires thorough analyzation of many documents. During this emotionally fragile time, it is best to have the right advice and guidance.