Divorce can be a significant turning point in anyone’s life, and it’s becoming increasingly common. According to data from the CDC, around 39% of marriages will end in divorce in 2023. While the divorce rate has been declining, many people face the challenge of updating their estate plans to reflect new family dynamics. In Ohio, as in many states, failing to update these documents after a divorce can lead to unintended consequences.
Consider the following scenario: you’ve divorced, remarried, and started a new chapter with your spouse and children. Years have passed, and life is good, but your estate planning documents remain unchanged from your previous marriage. Suddenly, you’re incapacitated due to an accident or illness, and your former spouse is still listed as your agent in your Health Care Power of Attorney. This could result in your ex-spouse making crucial medical decisions on your behalf, creating unnecessary stress for your family.
Should the unthinkable happen and you pass away, your family may face additional difficulties. Your current spouse might expect that your 401(k) savings would automatically benefit your family, only to find that your ex-spouse remains the named beneficiary. Federal law maintains that beneficiary designations on qualified retirement accounts like 401(k)s are not revoked upon divorce unless actively changed. Consequently, your ex-spouse could inherit these funds, leaving your current family without vital financial resources.
While Ohio law automatically invalidates bequests to an ex-spouse in wills after a divorce, complications can still arise. If your ex-spouse is appointed as a trustee in your estate planning documents, the divorce does not automatically remove them from this role. This could allow them to control the assets meant for your children, disrupting your family’s financial security.
These potential pitfalls underscore the importance of revisiting and updating your estate plan following a divorce. By removing your ex-spouse from roles such as beneficiary, trustee, or decision-maker, you can ensure your assets are distributed according to your present wishes, protecting your family’s future.
Engaging with an experienced estate planning attorney in Ohio is essential to navigating these complexities. They can assist you in revising your estate plan to reflect your current family structure and priorities, providing peace of mind that your loved ones are protected. By taking proactive steps, you can prevent unintended outcomes and ensure that your estate plan supports the people who matter most in your life today.
At Krugler Law, we understand how life changes like divorce can impact your estate planning needs. Our experienced estate planning attorneys in Ohio are here to help you navigate these changes and secure your family’s future. If you’ve recently gone through a divorce or haven’t updated your estate plan in years, now is the time to act. Call our office today (513) 916-1600 to schedule a consultation and ensure that your estate plan reflects your current wishes and protects those you love.