Adults who create estate plans can’t assume that these are make-it-and-forget-it events. Instead, there are specific times when an estate plan must be updated. One of these is when a person goes through a divorce.
Indiana state law specifies that the terms of a person’s will are cancelled upon divorce if the terms are in the favor of the former spouse. Because of this fact, it’s critical that anyone who has divorced revises their will so it reflects their most current wishes.
Do former spouses retain any rights?
It’s possible for spouses to retain the rights to certain assets if the beneficiary designations aren’t changed. For example, a payable-on-death designation on a checking account could still result in a payment to the former spouse if it isn’t changed. The same is true of retirement accounts and life insurance accounts.
People who are going through a divorce need to review more than just their will. They also need to look at power of attorney designations. Most people wouldn’t want a former spouse handling their financial or medical affairs, so they would need to change those designations as soon as possible.
Determining how to handle changes to an estate plan requires careful review of the current plan. Once the necessary changes are determined, the individual will likely need the assistance of someone who’s familiar with these matters so they can set everything up in a way that legally and accurately reflects their wishes.