Sunday, April 22, 2007

Estate planning and divorce

What happens when a husband (or wife) divorces, remarries, and dies without taking the former wife's (or husband's) property off of a life insurance policy or does not change his Will?

1. Current spouse becomes extremely angry because
2. Former spouse gets the property.

Yes, it is that simple and that foolproof. I try to get my divorce clients in post-Final Hearing to make a Will and I let them know they need to change any accounts where the former spouse is a beneficiary.

If you are divorced and have not changed the beneficiaries on a IRA, bank account, insurance policy from your former wife, do it as soon as possible. If the former spouse remains in your Will, make an appointment with your attorney immediately.

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