Did you know that divorces among Older Americans, often referred to as “gray divorces,” are on the rise? While ending a marriage later in life may bring a sense of newfound independence, it also brings unique challenges, especially when it comes to your estate plan. If you have recently gone through a gray divorce, now is the perfect time to give your Florida estate plan a fresh start.
Divorce impacts every aspect of your financial and legal planning, and your estate plan is no exception. Without proper updates, outdated estate planning tools could result in unintended beneficiaries, disputes, and complications for your loved ones down the road. Let’s review five reasons why you should revisit your estate plan after a gray divorce.
- Update beneficiary designations. Your divorce likely changes who you want to inherit your assets. Review and update the beneficiaries listed in your last will and testament, trust agreement, life insurance policies, and retirement accounts to reflect your new wishes.
- Revise your health care planning tools. A divorce may mean you no longer want your former spouse making medical or financial decisions on your behalf. Update your health care planning tools and durable powers of attorney to ensure the right person is designated to make these decisions if you are unable to.
- Protect your financial future. Divorce often alters your financial circumstances, which may impact your overall estate planning strategy. Work with a professional to assess your current finances and ensure your estate plan is aligned with your new goals, whether that is supporting children, grandchildren, or charitable causes.
- Plan for long-term care. Your marital status affects how you approach long-term care planning. A gray divorce may mean revisiting how you plan to afford care later in life. Florida offers unique planning opportunities that can help protect your assets while securing the care you need.
- Reassess guardianship provisions. If your estate plan includes provisions for dependents, such as grandchildren or disabled adult children, it is essential to reassess these arrangements after a gray divorce. Be sure that the individuals you have designated to manage their care and finances still align with your wishes and new circumstances.
We know this article may raise more questions than it answers. At Perlin Estate Planning & Probate, our credentials enable us to provide a multi-disciplinary approach to our legal services. By building relationships with our clients, we are also able to understand each client’s needs and desires, and we support such goals through thoughtful, comprehensive planning techniques. We encourage you to contact us and schedule a meeting.