Attorneys at Clear Counsel Law Group emphasize the significance of estate planning to everyone, not just clients. It’s a way to prepare for life’s unexpected turns and ensure your wishes are respected. Unfortunately, without a written plan, disagreements can arise among family members about what a deceased person wanted. These disagreements frequently lead into complicated legal situations that are headed off by a proper estate plan.
For example, a grandmother wants to leave her house to a specific grandchild but doesn’t put it in writing, it’s unlikely that the grandchild will inherit the property if there are other heirs. Between spousal rights and intestacy laws, a spouse, an immediate child, and even a brother or sister are more likely to end up with the house than a grandchild. A well-crafted estate plan can prevent such issues. However, even the best estate plans need regular updates to reflect life’s changes.
Few changes are as sudden, or devastating to an estate plan, as a divorce.
When the Law Gets in the Way of the Law
Divorce can significantly impact your estate plan. Sometimes people pass away during the divorce process before it’s finalized. Even though it might seem obvious that someone wouldn’t want their now-estranged spouse to inherit their assets, the law still views an un-finalized divorce as a valid marriage. Therefore, until the divorce is officially complete, a soon-to-be ex-spouse has the same inheritance rights as a spouse who wasn’t in the process of divorcing.
Moreover, separating couples often remain financially interconnected in ways they might not realize. For example, life insurance policies might name a future ex-spouse as the beneficiary. Although these designations are typically revoked upon divorce, if the insured person forgets to update their policy, the insurance payout may become part of the deceased’s estate and potentially end up with the divorcing spouse. Similar issues can arise with joint bank accounts that ex-spouses forget to disentangle, potentially allowing one party to deplete the funds without considering other beneficiaries such as children.
In Nevada, the law is explicit: legally married individuals are considered spouses in the eyes of probate courts, regardless of their actual living situation. This can lead to complex and emotionally charged disputes, especially in cases where individuals enter new relationships without formally ending their previous marriage or the divorce is predicated on infidelity.
The Intersection of Divorce, Incapacity, and Estate Planning
The complexities deepen when considering cases of incapacity during a divorce. A notable example is the situation involving Lamar Odom, a former NBA player married to Keeping up with the Kardashians star Khloe Kardashian. He was found comatose during their divorce process. Since his divorce from Khloe wasn’t final, she legally retained the right to make medical decisions for him, despite their impending separation. This highlights the importance of updating estate plans and medical powers of attorney at the outset of a divorce, as your soon-to-be ex could become the person making critical decisions on your behalf.
This is one of many reasons that estate planning attorneys emphasize the importance of regular updates to an estate plan. Life changes like purchasing a new home, acquiring new accounts, welcoming children, or starting a job with a 401k plan all warrant a review and potential update of your estate plan. Clients should inform their attorneys of asset changes, finalized divorces, and pending divorces. This allows time to adjust an estate plan accordingly. Including divorce contingencies in certain documents to clarify intentions in the event of divorce is also advisable.
While you can never predict every twist and turn in life, you can certainly prepare for many common scenarios. An up-to-date estate plan is a critical tool in ensuring your wishes are respected, no matter what life throws your way. Contact our attorneys at Clear Counsel Law Group for a free consultation to establish or update your estate plan, including arrangements for decision-making in case of incapacity. Remember, planning today can save a lot of stress and confusion tomorrow.