Life is a journey filled with unexpected twists and turns, and few experiences illustrate this better than the intersection of marriage and divorce with estate planning. These significant life events can have far-reaching implications for your Will and your estate.
In this blog post, we'll explore how marriage and divorce can impact your Will and the steps you can take to ensure your estate planning remains aligned with your life's evolving chapters.
Marriage: A Union of Lives and Wills
They say that marriage is the merging of two lives into one beautiful journey. What's often overlooked, however, is that marriage can also represent the intertwining of two separate estates and financial plans. When you tie the knot, updating your Will becomes a crucial step in ensuring your spouse is protected according to your wishes. Here's what to consider:
Review Your Beneficiaries: Take a close look at the beneficiaries listed in your Will. If you wish to include your new spouse as a beneficiary, make sure this is explicitly stated. Additionally, consider whether you want your spouse to inherit specific assets or a portion of your estate. Whilst we have testamentary freedom in England and Wales, it is possible for certain people to make a claim against your estate following your death, if they feel they have not received reasonable provision and your new spouse is at the top of this list of people who can bring a claim.
Executor and Guardianship: You might need to adjust the executor of your estate or designate guardians for your children if you have any. Your spouse's role and wishes should be accounted for in these decisions.
Joint Ownership: Assets you acquire together as a married couple might already have joint ownership. Be sure to update your Will to reflect your joint ownership preferences. You may wish to consider a Declaration of Trust if you have purchased assets in unequal shares or if one of you have brought more financial assets to the marriage than the other.
Your children: This might have been married before and you may have children from any previous marriages or you might now have stepchildren, who you might want to ensue inherits from your estate. Talking to a professional will ensure that your estate is protected from sideways disinheritance and that your children and/or stepchildren will inherit from your estate, whilst ensuring your spouse is looked after for the rest of their life. A carefully drafted Will prevents your spouse leaving your estate to a new spouse or partner later on down the line.
Divorce: Untangling the Threads
While no one enters into marriage expecting divorce, it's a reality that some couples face. Divorce doesn't just dissolve a marriage; it also prompts a reconsideration of financial plans, including your Will. Here are essential steps to take:
Update Your Will: After divorce, it's crucial to revise your Will to remove references to your former spouse. Any bequests or responsibilities assigned to your ex-spouse should be reconsidered and restructured according to your current situation. Following your divorce being finalised the law treats any gift or appointment as though your former spouse has died before you. However, during any period of separation, your Will remains valid and means that your estranged spouse could inherit from your estate, which might not be what you would have wanted.
New Beneficiaries: With the dissolution of a marriage, you might want to update your beneficiaries, designating family members, friends, or organisations that now align with your post-divorce wishes.
Executor and Trustee: Similarly, you should review the appointments of executors, trustees, and guardians in light of the changed circumstances.
Joint Assets: Many joint assets pass by survivorship, this means that if you and your ex-spouse own any bank account, investment or property jointly, then the survivor would automatically inherit the other person's share, this is irrespective of what you stipulate in your Will. A carefully drafted estate plan can ensure that your joint assets are changed to be held in such a way, where you have control and dominion over your share.
Consult a Professional
The complexities of estate planning, especially in the context of marriage and divorce, underscore the importance of consulting a legal professional. An experienced estate planner and Will writer can guide you through the intricacies of updating your Will, ensuring your wishes are accurately documented and legally binding.
As we journey through life, our experiences shape our perspectives and decisions. Marriage and divorce are powerful milestones, and understanding their impact on estate planning ensures that your wishes are carried out regardless of life's twists. If you're seeking guidance on updating your Will after a significant life event, consult a legal professional, such as Toucan Law who who can help navigate the complexities and ensure your legacy is preserved.
In conclusion, life's twists and turns have a way of influencing our best-laid plans, including our estate planning. Whether you're celebrating the union of marriage or navigating the challenges of divorce, reviewing and adjusting your Will is a vital step to ensure your wishes are upheld in changing times. Remember, a well-crafted Will is a legacy that reflects not only your financial decisions but the chapters of your life's story.
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