When it comes to estate planning in Gold River, very few people take into consideration what happens to their assets in the event of divorce. Although it requires them to think of ways to shield their assets from greedy relatives and probate court, it is often beneficial to include contingencies for divorce.
From a financial standpoint, it may seem as if there is nothing to worry about if your marriage is still going strong. The future is not promised and impossible to predict. Divorce is one life event that can leave you reeling emotionally and financially. To prevent the dissolution of marriage from affecting your estate plans, consider the following pointers.
Divorce and your estate plan
Do not be so quick to cut your spouse out of your will. It is important for you to check with the courts first. If your divorce is still in the works, use the time to take an accurate inventory of all assets, establish ownership and name all beneficiaries. After your separation is final, you can remove your spouse’s name from your estate plans and revise them to reflect your current wishes and financial status.
Guardianship for your kids
If you have children, do not leave their guardianship up in the air. Name people you want to step in as their legal guardian in the event of your death. Keep in mind the courts do not necessarily have to agree with your decisions. However, they will take them into consideration when choosing an appropriate legal guardian for your kids.
Trusts for young beneficiaries
Your children may be young now, but there are ways you can protect their inheritances from issues that may arise when you are no longer around, such as creditors or divorce. You can use trusts to protect or defer their inheritances until they become adults and capable of managing them.