Divorce or separation can have a significant impact on your estate plan. If you are going through a divorce or separation, it is important to review your estate planning documents to ensure that they are still up-to-date and that they reflect your current wishes.
Here are some of the key estate planning implications of divorce or separation in Canada:
Changes to your will: If you have a will, it is important to review it and make any necessary changes after a divorce or separation. This may include removing your ex-spouse as an executor or beneficiary, or making changes to the distribution of your assets.
Jointly held property: If you own any property jointly with your ex-spouse, you will need to decide how to divide the property after your divorce or separation. This may involve selling the property and dividing the proceeds, or one spouse may transfer their interest in the property to the other spouse.
Life insurance: If you have life insurance, you may need to change the beneficiary after your divorce or separation. You may also want to consider purchasing additional life insurance to provide financial support for your children after your death.
Testamentary trusts: Testamentary trusts can be used to manage the assets of minor children or children with disabilities after your death. If you have a testamentary trust, you may need to review it and make any necessary changes after your divorce or separation.
Communicate with your ex-spouse. It is important to communicate with your ex-spouse about your estate planning wishes. This will help to avoid any surprises or conflict after your death.
Keep your estate planning documents safe and accessible. Your estate planning documents should be kept in a safe place where your loved ones can easily find them after your death.
In addition to the above, there are a number of other estate planning implications of divorce or separation. It is important to consult with an experienced estate planning lawyer to discuss your individual situation and to develop an estate plan that meets your needs.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.