Estate Planning Attorney Insights: Will Updates

Meason & Morris Law discusses Estate Planning Attorney Insights: Will Updates

Life brings many changes. Two of the biggest changes are divorce and remarriage. When your family changes, your legal plans must change too. Many people forget to update their wills and other important papers after a divorce or a new marriage. This can cause big problems for the people they love.

If you do not update your estate plan, the wrong person might get your money or house. An ex-spouse could inherit your retirement savings. Your new spouse might not have a place to live. Your children from a first marriage might lose their inheritance.

To stop these problems, you need help from an estate planning attorney. They know how the law works. They can help you fix your papers so your wishes are followed. In this guide, we will talk about the common mistakes people make. We will also explain how to update your will after a divorce or a remarriage.

Why You Need an Estate Planning Attorney After a Big Life Change

Your will is a legal paper. It tells the court who gets your things when you pass away. It also names the person who will make sure your wishes are followed. This person is called the executor.

When you get married, you usually leave everything to your spouse. You might also name them as your executor. But what happens if you get divorced? What happens if you get married again?

If you do not change your will, the old rules still apply in many ways. Some states have laws that cancel parts of a will that give things to an ex-spouse. But these laws do not fix everything. They do not change who gets your life insurance. They do not change who gets your retirement money.

This is why an estate planning attorney will tell you to make a new will. A new will makes your choices clear. It stops fights between your new family and your old family.

The Problem With Beneficiary Designations

One of the biggest mistakes people make is forgetting about beneficiary designations. A beneficiary is the person who gets the money from a specific account when you die.

You name beneficiaries on:

• Life insurance policies

• Retirement accounts (like a 401k or IRA)

• Bank accounts that pay on death (POD)

• Investment accounts that transfer on death (TOD)

Here is the most important thing to know: A beneficiary designation overrides a will.

Let us look at an example. You have a will that says your new spouse gets everything you own. But, your life insurance policy still names your ex-spouse as the beneficiary. When you pass away, who gets the life insurance money? Your ex-spouse gets it. The life insurance company must follow the beneficiary form, not your will.

This happens all the time. People get divorced. They change their will. But they forget to call the life insurance company. They forget to update their retirement accounts. Years later, their ex-spouse gets a huge check, and their new family gets nothing.

An estate planning attorney can help you check all of your accounts. They will make sure the right people are named on every form.

Common Mistakes with Beneficiaries

1. Leaving an Ex-Spouse on the Form: 

   This is the most common error. If you do not change the form, your ex-spouse gets the money.

2. Naming Minor Children Directly: 

   Many parents want their kids to get the money instead of an ex-spouse. But children under 18 cannot legally own large amounts of money. If you name a minor child, the court has to step in. The court will pick someone to manage the money until the child turns 18. Then, the child gets all the money at once. A better choice is to create a trust for your children.

3.Forgetting Contingent Beneficiaries: A contingent beneficiary is a backup person. If your first choice passes away before you, the backup person gets the money. You need to update your backup choices too.

What Happens to Your Estate Plan After a Divorce?

Divorce is stressful. Once the papers are signed, you might just want to rest. But your legal work is not done. You must update your estate plan right away.

Updating Your Will

As we talked about, your old will probably leaves everything to your ex-spouse. In some states, the law steps in and acts like your ex-spouse died before you. This means your ex-spouse will not get the items in your will.

But this creates a new problem. If your ex-spouse is treated as dead, who gets your things? The items will go to the backup person named in your will. What if the backup person is your ex-spouse's sibling or parent? You probably do not want them to get your money either.

The best choice is to write a brand new will. An estate planning attorney can draft a new will that fits your new life. You can name new people to inherit your things. You can also pick a new executor.

Updating Your Power of Attorney

A power of attorney is a very powerful document. It lets someone else make choices for you if you are hurt or sick.

There are two main types:

• Financial Power of Attorney: This person can pay your bills, sell your house, and handle your money.

• Medical Power of Attorney: This person can talk to your doctors and make health care choices for you.

During a marriage, you almost always name your spouse for these roles. If you get divorced, you must change these papers. If you do not, your ex-spouse could still have the legal right to control your money or make life-or-death medical choices for you.

You need to pick someone you trust right now. This could be a grown child, a sibling, or a close friend.

Updating Your Trust

If you and your ex-spouse made a trust together, you have a lot of work to do. A trust is a way to hold property. It helps your family avoid the long court process called probate.

After a divorce, a joint trust usually needs to be split up or canceled. You will need to take your assets out of the old trust. Then, you can make a new, separate trust just for you.

You must also make sure your ex-spouse is removed as a trustee. A trustee is the person who manages the trust. You do not want your ex-spouse managing your money if you get sick.

What Happens to Your Estate Plan After a Remarriage?

Getting married again is a happy time. But it makes estate planning much more complicated. This is especially true if you have a blended family. A blended family is when one or both spouses have children from a past relationship.

When you remarry, you have to balance two things. You want to take care of your new spouse. But you also want to protect the inheritance of your children.

If you do not plan carefully, your children could get nothing.

The Danger of Doing Nothing

Let us say you get married again. You do not update your will. If you pass away, your state laws will decide who gets your things. In most states, your new spouse will get a large share of your property. Your children might get a smaller share, or they might get nothing at all. To learn more about state laws, you can check the American Bar Association's guide on estate planning.

The Danger of "I Love You" Wills

Many married couples use "I Love You" wills. This means the husband leaves everything to the wife, and the wife leaves everything to the husband. When the second person dies, everything goes to the children.

This works well for a first marriage. But it is very dangerous for a second marriage.

Imagine you leave everything to your new spouse. You trust them to take care of your kids when they die. But legally, once you give them the money, it belongs to them. They can do whatever they want with it.

Your new spouse could write a new will. They could leave all the money to their own children. They could leave it to a new partner if they marry again. Your children would be completely cut out. This happens often, even when people mean well.

How an Estate Planning Attorney Can Help Blended Families

To protect both your new spouse and your children, you need special tools. An estate planning attorney can help you set up these tools.

1. The QTIP Trust

A QTIP trust is a great tool for blended families. QTIP stands for Qualified Terminable Interest Property.

Here is how it works:

When you pass away, your money goes into the trust. Your new spouse gets income from the trust for the rest of their life. They can live comfortably. But they do not actually own the money in the trust.

Because they do not own it, they cannot give it away. They cannot leave it to their own kids. When your new spouse passes away, the money left in the trust goes to your children.

This is the perfect way to take care of your spouse while protecting your children's inheritance.

2. Keeping Assets Separate

Sometimes, it is best to keep things separate. You might want to leave your life insurance to your kids, and your house to your new spouse.

Or, you can use a trust to let your new spouse live in your house until they die. After they die, the house goes to your children. This gives your spouse a place to live, but keeps the house in your family.

3. Prenuptial Agreements

A prenuptial agreement (prenup) is a contract you sign before you get married. It lists who owns what. It also says what happens if you get divorced or if someone dies.

A prenup is very helpful for second marriages. It makes sure everyone knows what to expect. It can stop fights between your new spouse and your children later on. Your estate plan and your prenup should match. An estate planning attorney can make sure they work together.

The Steps to Update Your Estate Plan

If you recently got divorced or remarried, you need to act fast. Here are the steps you should take to update your plan.

Step 1: Gather Your Documents

First, you need to find all your current legal papers. You need to see what they say right now.

Look for your:

• Will

• Trusts

• Financial Power of Attorney

• Medical Power of Attorney

• Living Will (Advance Directive)

Step 2: Make a List of Your Assets

Next, you need to know what you own. Make a list of all your accounts and property.

Include your:

• Bank accounts

• Investment accounts

• Retirement accounts (401k, IRA, pension)

• Life insurance policies

• Real estate (houses, land)

• Business interests

Step 3: Check Your Beneficiaries

This is the most important step. Call your bank, your life insurance company, and your retirement plan manager. Ask them who is listed as your primary beneficiary. Ask who is listed as your contingent (backup) beneficiary.

If the wrong person is listed, ask for a change of beneficiary form. Fill it out and send it back right away. Do not wait.

Step 4: Think About Your New Goals

Before you meet with a lawyer, think about what you want.

Ask yourself these questions:

• Who do I want to get my money and property?

• Who do I trust to be my executor?

• Who do I trust to make medical choices for me?

• Who do I trust to handle my money if I am sick?

• If I have minor children, who do I want to raise them? (Guardian)

• How can I protect my children's inheritance?

Step 5: Meet with an Estate Planning Attorney

Do not try to fix your estate plan by yourself. The laws are very strict. If you make a mistake, a judge might throw your will out.

Call an estate planning attorney at Meason & Morris Law. We know how to handle complex family changes. We will listen to your goals. We will look at your old papers. Then, we will draft new, clear documents that protect you and your loved ones.

Why You Should Not Wait

Many people put off updating their estate plan. They think they have plenty of time. But life is unpredictable. Accidents and sudden illnesses happen every day.

If something happens to you before you update your papers, your family will suffer. They might have to spend thousands of dollars fighting in court. They might lose the money you worked so hard to save. Your ex-spouse might get rich, while your children struggle.

Updating your plan gives you peace of mind. You will know that your family is safe. You will know that your wishes will be respected.

How Meason & Morris Law Can Help

At Meason & Morris Law, we understand that life changes. We know that divorce and remarriage are stressful. We are here to make the legal part easy for you.

When you work with us, you get a dedicated estate planning attorney. We take the time to explain the law in plain English. We do not use confusing legal words. We make sure you understand every choice you make.

We can help you with:

• Writing a new Last Will and Testament

• Setting up Revocable and Irrevocable Trusts

• Creating a QTIP Trust for a blended family

• Drafting new Powers of Attorney

• Updating Beneficiary Designations

• Planning for long-term care

Do not let an old document ruin your family's future. Take control of your legacy today.

Contact Us Today

If you have recently gone through a divorce or a remarriage, it is time for a review. Contact Meason & Morris Law to schedule a consultation. Let an experienced estate planning attorney review your current plan and help you make the necessary updates. Protect your assets, protect your children, and secure your new family's future.

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Meason & Morris Law is a legal firm led by seasoned attorneys Marty Meason and Chris Morris. We provide a professional experience for all our clients, helping them navigate their legal rights. We focus on Criminal Justice Law (felonies and misdemeanors), Divorce and Family Law, Expungement and Felony Law, Probate Law and also have Trial experience. Serving Washington County, Nowata County, Osage County, Rogers County, Payne County, Pawnee County, and Kay County in Oklahoma.

Meason & Morris Law

515 Delaware Ave

Bartlesville, OK 74003

918-336-6300