We see many, many situations where a person has become separated from their spouse or divorced, but still has their estranged or ex-spouse as their Trustee and Beneficiary under their Living Trust, or Personal Representative and Beneficiary under their Will. Further, they forget to change out the Death Beneficiaries on many of their financial vehicles.
Specifically, we see cases where someone will have their ex-spouse listed as the Death Beneficiary on their Life Insurance, IRA, 401(k), 403(b), Annuity, Certificate of Deposit, or some other financial vehicle. The named Death Beneficiary will control and, therefore, you will be leaving your “Life’s Work™” to your ex-spouse—possibly the one person who hates you more than anyone else on the planet!
In North Carolina, one must live separately—under different roofs—for more than a year before they can file for divorce. During that time of separation from your spouse, one may become sick, mentally disabled, or pass on. Again, you would have the “worst case scenario” in leaving someone in control of your Health Care decisions or control over the care facility in which you are placed in the event of Mental Disability if the angry estranged spouse is in control. They could receive everything you own if you pass on during this interim one year period. Also, you’ll get the same result after the divorce if you have not specifically changed your Estate Plan and Death Beneficiaries.
Anytime someone becomes separated from their spouse or divorced, they should have their Estate Plan and Death Beneficiaries reviewed immediately. Make sure that it is reviewed with an experienced Estate Planning Attorney and not with your divorce lawyer. The divorce lawyer is trained in the divorce laws not Estate Planning laws.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.