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If you’re planning to divorce (or even considering it), it’s important to keep in mind how divorce will affect your estate plan. It’s best to look at your plan sooner rather than later to determine what changes you’ll want or need to make.
Doing that requires understanding some things about Indiana law. Some changes you can make any time. Others need to wait until the divorce is final. Some are made automatically under the law. Getting experienced estate planning guidance can help you to better ensure that nothing falls through the cracks and that you don’t end up with an estate plan that isn’t what you intended.
Your soon-to-be ex’s inheritance
Under Indiana law, you can’t disinherit your spouse while you’re still legally married – unless you have a prenuptial or postnuptial agreement where they’ve given up their right to an inheritance. The law states that if someone with a valid will dies, their surviving spouse is allowed to claim a share of their estate. The percentage they can claim depends on whether a couple has children, among other things.
Once the final divorce decree is issued, Indiana law states that “all provisions in the will in favor of the testator’s spouse are revoked.” If you have a contingent beneficiary listed, they would receive the inheritance that initially was intended for your spouse if you passed away before making any changes. If you still want your spouse to receive an inheritance (or it’s part of your divorce agreement), you’ll still need to update your will or other relevant documents to state that.
Your designated executor and other administrators
If your soon-to-be ex is your named executor, power of attorney (POA), health care representative or has any other administrative responsibility, that likely is something you can change any time since those positions don’t have to be given to a spouse. There might be exceptions related to trusts for your children, so it’s important to check on that.
As with inheritances, Indiana law also automatically revokes ex-spouses from these fiduciary responsibilities when a divorce is finalized. Therefore, if you want them to remain your executor or continue to have other responsibilities, you’ll need to update your plan with the divorce to indicate that.
It’s a lot to think about at a time when you’ll likely be overwhelmed with changes. Having sound legal guidance can help you stay on top of your estate plan as you move into this new phase of your life.