Tip #9: Estate Planning IsA Very Important Part of The Divorce Process

Estate Planning Is Part of Divorce

Of all adults in the United States, 70% have never written a will. You can't afford to be one of the majority.

You should change your will after divorce or remarriage. And you should consider an interim will immediately upon separation to insure that the estate will not pass to an estranged spouse. And make sure to change the beneficiaries on your life and accident policies...whether at work or individually owned. Don't put it off.

Your estate can be structured to provide for minor children by use of trusts, springing durable powers of attorney, and guardianships. Check into this because it is an important part of your transition...and if you don't do it now, you probably never will.

Always spell out guardianship provisions in your will. If you don't specify how you want your children raised, a court will do it for you...without you being there to object.

There are many kinds of trusts available and insurance policies can have trusts as beneficiaries. Choose custodians and trustees carefully...And talk to them before you name them. Consider a friend or relative in close proximity to avoid changing schools.

If a disabled child is involved, special concerns must be faced in estate planning. Find a lawyer who is an expert because he can save you time, money, and aggravation. Ask about a discretionary spendthrift trust to supplement government assistance.

Do your health care planning in advance. Look into living wills and health care powers of attorney that take care of such things as taking you off respirators when you can't make the decisions for yourself. And make sure that you have a durable power of attorney in place so someone can make these and other decisions if you become disabled. This will save time, money, and trouble later.

Inquire about what happens if you or a loved one are put into a nursing home because this type of care is more often than not covered by traditional health insurance. Obviously, if something is not done, the assets you fought so hard to acquire may go up in smoke.

Find out about: Contracts to make wills. Workers compensation coverage beneficiaries. Key man coverage beneficiaries. Contracts to make wills.

DON'T FORGET to ask about the tax consequences of the way your estate is planned.