Navigating Estate Planning for Post-Divorce Individuals in Georgia: What You Need to Know

Going through a divorce is a life-altering experience that affects many aspects of your life, including your estate plan. After finalizing a divorce in Georgia, updating your estate plan is not just a good idea—it’s essential. Whether it’s adjusting beneficiaries, modifying powers of attorney, or rethinking asset distribution, there are several critical steps that post-divorce individuals must take to ensure their estate plan reflects their new reality.

At Your Legacy Lawyer, an Atlanta Estate Planning law firm, we understand how overwhelming post-divorce changes can be, and we’re here to guide you through the estate planning process in Georgia to safeguard your future.

1. Revisiting Your Will

If you’ve recently gone through a divorce, one of the first things you should do is revisit your will. In Georgia, the law automatically revokes provisions in your will that pertain to your ex-spouse upon divorce. This means that any bequests to your former spouse are nullified unless you explicitly include them again.

However, your entire will won’t be voided, which is why it’s crucial to carefully review it and update:

– Beneficiaries: Remove your ex-spouse if desired and consider adding new beneficiaries, such as children, siblings, or even charities.
-Executor: If your ex-spouse was named the executor of your estate, you’ll need to appoint a new person to handle your affairs.
– Guardianship: If you have minor children, ensure that you’ve updated guardianship provisions that align with any new custody arrangements.

2. Updating Beneficiary Designations

A common mistake people make post-divorce is forgetting to update beneficiary designations on financial accounts, such as life insurance policies, retirement accounts, and investment accounts. These designations override what’s written in your will, so even if you change your will, the account may still go to your ex-spouse unless you update the beneficiary information directly.

Make sure to review and update the beneficiaries on:

– Life insurance policies
– 401(k), IRA, or other retirement account
– Bank and brokerage accounts with payable-on-death (POD) designations
– Pension plans

In some divorce settlements, you may be legally required to keep your ex-spouse as a beneficiary on certain accounts for a period of time, particularly when it comes to child or spousal support. It’s important to consult with both your divorce attorney and estate planning attorney to ensure your beneficiary designations comply with legal obligations.

3. Revoking or Revising Powers of Attorney and Healthcare Directives

During your marriage, you may have named your spouse as your agent under a durable power of attorney (giving them control over financial decisions) or your healthcare agent (giving them authority to make medical decisions on your behalf). Post-divorce, you’ll likely want to revoke these designations and appoint someone else.

In Georgia, divorce does not automatically revoke a financial or healthcare power of attorney. You will need to:

– Revoke the old documents: Officially revoke the prior power of attorney and healthcare directive to prevent your ex-spouse from having any authority.
– Create new documents: Name a new trusted person to handle your finances and healthcare decisions should you become incapacitated.

This step is especially important if you’re concerned that your ex-spouse may still have access to your financial accounts or medical information.

4. Reviewing and Updating Trusts

If you had a trust in place before your divorce, particularly a revocable living trust, you’ll want to review it immediately. Georgia law may revoke any provisions in you will in favor of your ex-spouse after a divorce, but that doesn’t mean your trust will automatically reflect your new wishes. Additionally, if you and your spouse created a joint trust, it may need to be dissolved or amended.

Consider these changes when reviewing your trust:

– Trustees: If your ex-spouse was named as the trustee, choose a new, reliable person to manage the trust’s assets.
– Beneficiaries: Remove your ex-spouse if necessary and update the beneficiaries to reflect your post-divorce wishes.
– Trust Terms If you want to change how assets are distributed, especially to children or other family members, work with an attorney to amend the terms of the trust.

5. Addressing Property and Asset Division

Divorce in Georgia involves the equitable division of marital assets, which may include real estate, businesses, investments, and other valuable property. Once the divorce is finalized and assets have been divided, your estate plan should reflect these new circumstances.

Make sure to:

– Update deeds and titles: If you’ve been awarded real estate, make sure your name alone is on the deed. If property was transferred to your ex-spouse, ensure that your name has been removed.
– *adjust your estate tax strategy: Depending on the size of your estate, you may need to update your tax strategy, particularly if you’ve lost access to the marital deduction, which allows spouses to transfer unlimited assets to one another without incurring estate taxes.

6.Planning for Minor Children

If you have children, updating your estate plan after a divorce becomes even more critical. You’ll want to make sure your children’s inheritance is protected, especially if you don’t want your ex-spouse to have control over their assets.

Consider setting up a testamentary trust or a living trust to manage the assets left to your children. This way, you can appoint a trusted third party as trustee to oversee the distribution of funds, rather than leaving everything to your ex-spouse. Additionally, you may want to revise who is named as the guardian for your children in the event of your death.

7. Complying with Divorce Settlement Terms

After a divorce, certain aspects of your estate plan may be dictated by your divorce settlement agreement. For instance, you may be required to maintain a life insurance policy with your ex-spouse as a beneficiary to secure alimony or child support payments. Ensure that your updated estate plan complies with these legal requirements to avoid potential disputes or legal consequences.

The Bottom Line: Protect Your Future After Divorce

Divorce changes many things, including your financial situation and the way you want your assets to be distributed. If you’ve recently gone through a divorce in Georgia, now is the time to review your estate plan to ensure it reflects your current wishes and complies with state law.

At Your Legacy Lawyer, an Atlanta Estate Planning law firm, we specialize in helping individuals update and create estate plans that protect their assets and their loved ones, especially during times of major life changes. Whether you need to revise your will, update beneficiary designations, or create new powers of attorney, we’re here to guide you every step of the way. Contact us today to schedule a consultation and take control of your future.