Divorce can affect many areas of your life, from your daily routines to your long-term financial plans. When going through a divorce in Pennsylvania, one of the most important things to consider is how it will affect your trust and estate plan. Trust and estate planning involves managing your assets, deciding who will inherit your property, and making sure that your wishes are followed after your death. If you are going through a divorce, it is crucial to understand how your estate plan may be impacted and what changes may need to be made. At, Gibson & Perkins, PC , we are here to guide you through the legal process and help you navigate the complexities of your case.
Estate planning is important because it allows you to ensure that your assets are handled the way you want after your death. If you created a trust or will while you were married, you likely named your spouse as a beneficiary or gave them authority over certain decisions. However, a divorce can change those decisions. Pennsylvania law has specific rules about how divorce impacts your estate plan, and it is important to review your plan during and after the divorce process to make sure it still reflects your wishes.
How Divorce Affects Wills in Pennsylvania
A will is a legal document that states how you want your assets distributed after your death. When you are married, it is common to name your spouse as your primary beneficiary. In the event of a divorce, many people assume that the divorce will automatically remove the spouse from the will. In Pennsylvania, the law does provide some automatic protections in this area. Once a divorce is finalized, any provisions in the will that include your ex-spouse are typically revoked. This means that your ex-spouse would no longer inherit from your will, and they would no longer have any powers you may have granted them, such as the role of executor.
However, the divorce must be final for this to happen. If you are only separated or going through the divorce process, your spouse could still inherit from your will unless you update it. It is important to review and update your will as soon as possible if you are going through a divorce to make sure that your assets will go to the people you want. You may also need to name a new executor if your spouse was originally chosen for that role.
I hired Paul Fellman after speeking to several different lawyers from different law firms because he was the most sincere. Paul did an excellent job on my landlord tenant issue I had on my rental property. He was there for me from the beginning to the end of the whole ordeal. I was very satisfied and I highly recommend him and his firm.
Professionalism is the Word
I highly Recommend Gibson & Perkins. I have used their services for approximately 6 years now and been through a few cases together with very positive outcomes. Personally, I have used Paul Fellman and Walter Timby on those occasions. Both, as a team & separately these Attorneys were wonderful to work with and easily accessible to reach if I had any questions. Professionalism is the word that comes to mind to describe the firm, as a whole. Always completely prepared for any surprises that may pop up during a trial. They were well versed on all pertinent info pertaining to each case. As I client, I always felt I was an integral part of the team, not an after-thought, that had to be brought up to speed a half hour before the trial started. I could not recommend this firm and Mr. Fellman and Mr. Timby any higher.
Very Satisfied
The Impact of Divorce on Trusts
Trusts are another common tool used in estate planning. A trust is a legal arrangement in which you transfer assets to a trustee to manage for the benefit of your beneficiaries. In Pennsylvania, trusts can be revocable or irrevocable. A revocable trust allows you to change or cancel the trust at any time, while an irrevocable trust generally cannot be changed once it is created.
Divorce can have a major impact on revocable trusts. If you named your spouse as a trustee or beneficiary of the trust, you will likely want to remove them after the divorce. Because a revocable trust can be changed, you have the ability to make these updates. Like wills, Pennsylvania law automatically removes your spouse as a beneficiary or trustee of a revocable trust after the divorce is finalized. However, the divorce process can take time, and until it is complete, your spouse may still have rights under the trust unless you update it.
Irrevocable trusts are more complex. Since these trusts cannot be changed in most cases, the terms of the trust may remain in place even after a divorce. If you created an irrevocable trust during your marriage that included your spouse as a beneficiary, they may still have rights to the trust assets even after the divorce is final. This can be a difficult situation to navigate, and it is important to consult with a legal professional to understand your options and how your trust may be affected by divorce.
Divorce and Powers of Attorney
A power of attorney is a legal document that gives someone else the authority to make decisions on your behalf if you are unable to do so. Many people choose their spouse as their agent under a power of attorney. However, after a divorce, you may no longer want your ex-spouse to have control over important decisions like financial matters or healthcare choices.
In Pennsylvania, a divorce generally revokes any powers of attorney that named your spouse as your agent. This means that once the divorce is final, your ex-spouse will no longer have the authority to make decisions on your behalf. However, until the divorce is finalized, your spouse may still have power under the document. To protect yourself, it is important to update your power of attorney as soon as possible if you are going through a divorce. You can choose a new agent who you trust to make these important decisions for you.
The Effect of Divorce on Beneficiary Designations
Many estate plans include beneficiary designations, which are used to specify who will receive certain assets after your death. Common examples of assets with beneficiary designations include life insurance policies, retirement accounts, and payable-on-death bank accounts. In many cases, people name their spouse as the beneficiary of these accounts.
In Pennsylvania, divorce does not automatically revoke beneficiary designations. This means that if you do not update your beneficiary designations after a divorce, your ex-spouse could still inherit these assets. It is very important to review all of your beneficiary designations after a divorce and make sure that they reflect your current wishes. If you do not want your ex-spouse to receive these assets, you will need to name a new beneficiary.
Changes to Guardianship Provisions
If you have minor children, your estate plan may include guardianship provisions. These provisions specify who will care for your children if you pass away while they are still minors. Divorce can complicate guardianship issues, especially if your ex-spouse is the other parent of your children.
In most cases, if one parent dies, the surviving parent will automatically become the guardian of the children, even if the parents are divorced. However, there may be situations where you do not want your ex-spouse to have full custody of your children, such as if there are concerns about their ability to provide care. In these cases, it is important to include detailed guardianship provisions in your estate plan and consult with a legal professional to understand your options.
Updating Your Estate Plan After Divorce
The key takeaway when it comes to divorce and estate planning is that you should review and update your estate plan as soon as possible after the divorce process begins. While Pennsylvania law does provide some automatic protections, such as revoking your ex-spouse’s rights under a will or revocable trust, these protections only take effect once the divorce is finalized. Until then, your ex-spouse may still have rights under your estate plan. Additionally, some parts of your estate plan, like beneficiary designations and irrevocable trusts, may not be automatically affected by divorce.
To ensure that your estate plan reflects your wishes, it is important to make the necessary updates. This includes updating your will, trust, power of attorney, beneficiary designations, and guardianship provisions. You may also want to consider other changes to your estate plan, such as creating new trusts or setting up new financial arrangements to protect your assets.
Divorce can be a challenging time, but with the right steps, you can protect your assets and make sure that your estate plan is up to date. By taking the time to review and update your estate plan, you can ensure that your wishes will be followed, and your loved ones will be taken care of.
Navigating the legal impact of divorce on your trust and estate plan can be complex, and it is important to get the right guidance. If you are going through a divorce in Pennsylvania and need help with updating your estate plan, the team at Gibson & Perkins, PC is here to assist you. Our experienced attorneys can provide personalized advice and help you make the changes you need to protect your assets. Contact us today to schedule a consultation and learn more about how we can help you plan for the future.