Updating Your Wills, Trusts and Other Legal Documents

Update Wills and Legal Documents

Rewrite your will to name an heir other than your spouse. While divorce decrees generally revoke any prior disposition of property to a former spouse under a will, you may want to do this while the divorce is pending.
Change the beneficiaries on retirement savings accounts such as 401(k)s and IRAs, unless your property settlement agreement states otherwise.
Review and change all legal documents that named your ex-spouse to act on your behalf, such as a durable power of attorney or health-care power of attorney and living will.
Make sure all estate planning documents reflect current choices for designees to manage and receive your property in the event of death or incapacity.

Consider Guardians and Trusts

Seek legal advice on the best way to pass property to minor children upon death in lieu of distributions to an ex-spouse.
Two commonly used strategies are to name a guardian in your will to manage the child’s property and to set up a trust to receive property for the benefit of the children. The trust would be managed by a trustee (e.g., family member, bank) named by the owner (parent).