Sadly, Elizabeth Edwards, the wife of former presidential candidate John Edwards, died on December 7th. Her will was released and there has been much reported about the fact that she made no mention of her estranged husband in her will . Although the bulk of her wealth will pass through her trust which remains private and may have provisions for John Edwards, the passing of Elizabeth Edwards raises important points anyone considering divorce or in the process of divorce should be aware of. Wills, trusts, beneficiaries, guardians, and general planning for ones death or incapacity is something so many people tend to postpone. Often, by the time a life changing event occurs, it is too late to act. Combining this unpleasant task with divorce -another life altering event- estate planning seems to become too overwhelming to deal with. Yet, when divorce is on the horizon, one must review their estate plan. In addition to divorce, other life cycle events such as remarriage, birth of a child, adoption, death of a parent and other events trigger the need for you to create or review your estate plan. An estate plan can accomplish many goals such as:
- Determining to whom your property will pass and when;
- Nominating a guardian for your minor children;
- Designating an agent to make health care and/or property decisions on your behalf in the event of disability;
- Avoiding probate court and probate costs;
- Eliminating or reducing estate taxes.
By not acting, the chances increase that something unintended may occur. Unintended results include ex or soon to be ex-spouses receiving life insurance or retirement money. Also, an estranged spouse may have the legal right under a power of attorney to make medical decisions about life sustaining medical care. In addition, planning may help eliminate family disputes over what your actual wishes were.
As a result, I strongly recommend that people review their estate plans periodically and especially at all points during and after a divorce. Please free feel to call or email me if you have any questions about your estate planning needs.
