A divorce often necessitates major estate planning. The division of property, custodial rights and the establishment of spousal support all need to be considered and finalized. In addition to economic and emotional rifts, it is often easy to overlook the estate plan. This negligence, however, can be very detrimental to all who are involved. Following are a few essential components in an estate plan that must never be ignored.
Start modifying your estate plans by altering your will. This document may have been executed prior to marrying your partner, establishing a family and acquiring your current level of financial stability and thus, there have likely been a number of considerable changes in your circumstances. The areas of your will that will need to be amended include the appointment of a personal representative and asset distribution. It is very easy to alter your will, either by executing a codicil or by rewriting it entirely.
Whether before or during your marriage, make certain to review the terms of established trusts with an estate planning attorney in the state of Florida. It may be necessary to name new beneficiaries or trustees. Revocable Living Trusts can be easily altered to fit your changing circumstances and needs.
Other trust types such as Qualified Personal Residence Trusts, charitable trusts and Irrevocable Life Insurance trusts can be far more difficult, if not impossible to alter. This is due to the fact that the original motivation for the inception of these trusts is the execution of irrevocable elections. Instruments like these are normally structured to provide mutual benefits for both parties. If either spouse assumes legal authority to change any elections thereunder, there is usually a reversal of tax advantages as well.
If you have named your spouse as the beneficiary, you likely want to designate another party to receive the death benefits should you pass away. In many instances, it is only necessary to contact the insurer. Keep in mind that Domestic Relations courts routinely deem any cash value for life insurances as part of the marital estate. For this reason, these monies are subject to equitable division. It is additionally common for divorce courts to order that a minimal amount of life insurance be maintained for the protection of all minor children.
Learn about the payout options for death benefits that are offered by your carrier. As an example, if your children are still fairly young, think about getting a structured benefit rather than requesting a lump sum payout. This ensures continuing subsistence payments for a much longer period than a single, lump sum payout is likely to last. It is often possible to additionally include a combination of single payments and period payments in order to ensure that future living costs such as college tuition are covered.
The best source for accurate legal assistance and advice is a reputable Florida estate planning attorney. This professional can make a comprehensive exploration of the available revisions for your estate plan in order to find options that best suit your personal circumstances. Creating an optimal strategy makes it necessary to review complex legal documents such as estate and statutory tax previsions, prenuptial agreements, Social Security regulations and even the terms of private retirement plans like pensions and 401k plans. Avoid procrastination and oversight. Get in touch with a trusted provider to begin creating a stable foundation for a brighter and better future right now.
If you are fortunate enough to live in South Florida, visit http://wfplaw.com, call the estate planning attorneys of Wild Felice and Partners at (954) 944-2855 to set your estate plan right.