Estate Planning and Divorce in Massachusetts
Estate Planning and Divorce: Navigating Changes and Protecting Your AssetsDivorce is a life-altering event that can have profound implications for your financial future and estate plan. Many couples initially design their estate plans around their marital relationship, naming their spouse as their primary heir, health care proxy, and durable power of attorney. Additionally, tax-saving strategies may have been employed to maximize spousal gift exemptions.
However, when a marriage ends, these carefully crafted estate plans may no longer serve your interests. Massachusetts law may remove your ex-spouse as a beneficiary under your will and trusts, but it won't automatically revoke all your estate planning documents. Moreover, your estate plan may no longer offer the tax benefits you had initially intended. |
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Before Filing for Divorce
It's crucial to understand that until your divorce is finalized, you are still legally married under Massachusetts law. Consequently, any provisions you've made for your spouse in your estate planning documents will not be automatically revoked during this interim period. There are also limitations on what you can do once divorce papers are filed due to an automatic restraining order, which prevents spouses from changing beneficiary designations and transferring assets.
Before filing for divorce, consider making immediate changes such as updating your life insurance, investment account, and retirement plan beneficiaries. You can also revise your powers of attorney and health care proxies to ensure your spouse isn't making decisions for you during the divorce process. These steps can be taken without your spouse's consent and are confidential between you and your estate planning attorney.
If you don't have any estate plan in place, remember that without action, your soon-to-be-ex-spouse may inherit all your assets if something happens to you before the divorce is finalized. If you already have documents in place, you'll want to thoroughly revise your estate plan after the divorce is final. Waiting until the division of marital property is complete may provide a clearer picture of your financial assets.
Before filing for divorce, consider making immediate changes such as updating your life insurance, investment account, and retirement plan beneficiaries. You can also revise your powers of attorney and health care proxies to ensure your spouse isn't making decisions for you during the divorce process. These steps can be taken without your spouse's consent and are confidential between you and your estate planning attorney.
If you don't have any estate plan in place, remember that without action, your soon-to-be-ex-spouse may inherit all your assets if something happens to you before the divorce is finalized. If you already have documents in place, you'll want to thoroughly revise your estate plan after the divorce is final. Waiting until the division of marital property is complete may provide a clearer picture of your financial assets.
After the Divorce is Final
Once the divorce is finalized, several crucial steps should be discussed with an estate planning lawyer:
1. Update Beneficiary Designations: If you didn't revise your health care proxy, power of attorney, and beneficiary designations before filing for divorce, it's essential to do so now.
2. Tax Planning: Consider any tax planning that was initially based on your married status. Your revocable trusts will no longer protect you from estate taxes. If your retained assets after the divorce may exceed $2 million, consult your attorney on ways to minimize Massachusetts estate tax.
3. Revise Your Will: Automatic revocation by law will remove your ex-spouse as a beneficiary, but you should still revise your will to ensure your assets are distributed according to your wishes, rather than state intestacy laws.
4. Guardianship: Review your will to determine who you've named as a personal representative and guardian for minor children. You may want to change these designations if they were based on your spouse's family.
5. Revoke Trusts: Formally revoke any revocable trusts that named your spouse. If assets were placed in those trusts, they can be moved elsewhere, and any references to them in your will should be removed.
1. Update Beneficiary Designations: If you didn't revise your health care proxy, power of attorney, and beneficiary designations before filing for divorce, it's essential to do so now.
2. Tax Planning: Consider any tax planning that was initially based on your married status. Your revocable trusts will no longer protect you from estate taxes. If your retained assets after the divorce may exceed $2 million, consult your attorney on ways to minimize Massachusetts estate tax.
3. Revise Your Will: Automatic revocation by law will remove your ex-spouse as a beneficiary, but you should still revise your will to ensure your assets are distributed according to your wishes, rather than state intestacy laws.
4. Guardianship: Review your will to determine who you've named as a personal representative and guardian for minor children. You may want to change these designations if they were based on your spouse's family.
5. Revoke Trusts: Formally revoke any revocable trusts that named your spouse. If assets were placed in those trusts, they can be moved elsewhere, and any references to them in your will should be removed.
Creating a New Will or Modifying an Existing Will
While some changes can be made via codicil (a legal document amending your will), in many cases, it's advisable to create an entirely new estate plan reflecting your new circumstances. Divorce can significantly impact your financial situation, family dynamics, and long-term objectives, and your estate plan should align with these changes.
Meet Our Estate Planning Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna wrote a book on estate planning: The Road to Peace of Mind: What You Need to Know About Estate Planning. Jenna has helped many individuals and families with planning to protect their legacies and loved ones, and planning for the future and succession of their businesses.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and earned her LLM in estate planning from Western New England Scool of Law in 2016. She has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped many clients with planning for their legacies and their future, and navigating the probate process in Massachusetts after the death of a loved one.
How We Can Help
Our experienced estate planning attorneys are here to guide you through the complexities of estate planning and divorce in Massachusetts. We'll work with you to create a customized plan that safeguards your assets, addresses your unique needs, and helps you achieve your financial goals.
Don't let the challenges of divorce affect your financial future. Contact us today to discuss your estate planning needs and protect your legacy. You can use the button below to schedule a free information call, or simply give us a call at 781-784-2322.
Don't let the challenges of divorce affect your financial future. Contact us today to discuss your estate planning needs and protect your legacy. You can use the button below to schedule a free information call, or simply give us a call at 781-784-2322.
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