Updating your will after divorce is an essential step in estate planning, and one that people often fail to consider at an early stage. Similarly, should you remarry, putting in place the right measures in your estate to protect your assets and ensure that the right people benefit from your life is often overlooked.
In this article we take a look at just some of the key points that you must consider both after divorce, and when you remarry.
Importance of Updating Your Will After Divorce
Updating your will after divorce is crucial to ensure that your final wishes are followed. Many people believe that a will is automatically revoked after divorce. This is simply not the case, nor is it the case that a will that was in place before getting married will be reinstated.
Your former spouse will, for the purpose of your will, be treated as if they had died. What this can mean is that any clauses in your will that deal with this eventuality and leave your assets and belongings to someone else will remain in place.
So, your will is unlikely to be fit for purpose or to properly represent your new wishes.
You must also consider naming new guardians for your children, and reflect your new financial situation in your will.
In addition, you must consider anything where your former spouse is named, for example on your Lasting Powers of Attorney, beneficiary to life insurance, and so on.
Understanding the Legal Implications
After a divorce, it is crucial to update your will to reflect the changes in your personal circumstances. Failure to do so may have implications regarding the distribution of your estate that your grieving family will have to unpick. Updating your will ensures that your assets are distributed according to your current wishes and prevents unintended beneficiaries from inheriting. It is important to consult with an estate planning professional to navigate the complex legalities involved in updating your will after divorce.
Considerations for Updating Your Will After Divorce
When updating your will after divorce, there are several important considerations to keep in mind. Firstly, you should review and update your beneficiaries, as your ex-spouse may still be listed as a beneficiary on certain accounts or policies.
Secondly, you should reconsider who you would like to appoint as the executor of your estate, as well as any guardians for your minor children, as your circumstances may have changed.
Lastly, it is crucial to consult with an estate planning professional to ensure that all necessary changes are made, that your wishes are properly reflected in your updated will, and that your new will does not leave the possibility of legal challenge open from your former spouse or any former beneficiaries.
Estate Planning and Updating your Will After Remarrying
When updating your will after remarrying you will face several challenges that you must address. Failing to update your will can leave significant risks:
Sideways disinheritance: assets intended for children from a previous marriage may be unintentionally transferred to a new spouse. The greatest risk of this happening is where a couple create mirror wills where everything is left to the surviving spouse. There is then nothing to stop them from drawing up a new will that removes children from a former marriage (i.e. your children) from their new will. They will receive nothing from your estate when the surviving spouse dies.
Inheritance tax: a couple who remarry may have two or more properties, and other assets accumulated before remarrying. This could push the value of an estate above the threshold for Inheritance Tax easily, particularly when the current value of property is considered.
Generational disinheritance: sideways disinheritance effectively redirects the estate away from some beneficiaries. In this case, anything that you may have wished to leave to future generations; grandchildren, for example, would not happen. Your assets would be passed down a different line, who you may well have had no knowledge of.
Writing a Will After Divorce: Essential Steps
- When writing a will after a divorce, there are essential steps that should be followed.
- Remove your former spouse as a beneficiary and from any roles of authority within your will.
- Remove your former spouse from other legal responsibilities such as attorney in your Lasting Powers of Attorney, as beneficiary to life insurance and so on.
- Carefully consider any beneficiaries you may no longer wish to leave assets to, ensuring they are appropriately addressed.
- Consider the guardianship of your children.
- Always take professional advice from an estate planning professional
Writing a Will After Remarrying: Important Considerations
When writing a will after remarrying, there are several important considerations to keep in mind.
- Address the potential issue of sideways disinheritance, where assets intended for your children from a previous marriage may inadvertently go to your new spouse and their children but not yours.
- Consider the risk of generational disinheritance as a result of sideways disinheritance
- Carefully consider the inclusion of stepchildren as beneficiaries and stipulate their inheritance rights.
- Deliberate on who you want to appoint as the executor of your will, ensuring they are trustworthy and capable of fulfilling their duties.
- Consider the increased risk of Inheritance Tax due to the addition of property and other assets due to remarriage.
- Seek professional advice so that your estate planning with your new spouse mitigates the risks of estate planning with blended families, and ensures that the whole family is secure.
Seeking Professional Assistance
Seeking professional assistance in the estate planning process is crucial for ensuring a sound and legally secure will.
By consulting with an estate planning professional, individuals can reduce the risk of legal challenges and identify potential issues such as sideways disinheritance, considerations for stepchildren, changing beneficiaries, and exposure to inheritance tax.
Professional guidance will help you to make informed decisions about naming an executor and effectively managing the potential risks discussed in this blog.
