Estate Planning and Divorce in Illinois: Protecting Your Assets and Your Future

 Posted on May 11,2023 in Chicago divorce attorney

Going through a divorce can be difficult and can take a toll on you emotionally. Updating your estate plan during this time can make things more complicated. It is essential to examine and validate that your will, trust, power of attorney, and beneficiary designations are accurate for your current situation and that your assets are safeguarded in line with your desires.

Updating Your Estate Plan

One of the most important things you can do is review and update your estate plan while going through a divorce. This process involves evaluating your will, trust, power of attorney, and named beneficiaries to make sure they match your current reality and protect your assets according to your wishes.

Without updating your estate plan, you may find yourself in a situation where your ex-spouse is able to take control of assets that were meant for someone else after your death. This could include inheritances, IRAs, health insurance plans, and more.

Revocable Living Trusts

A revocable living trust is a great way to plan your estate. You can transfer asset ownership to a trust while still being in charge of them during your lifetime, which can help avoid probate and ensure that your loved ones are taken care of when you pass away. If you’re going through a divorce, it is important to update your trust. This may involve modifying the trustee or beneficiaries, revising the trust’s terms, or safeguarding your assets.

Wills

To clarify, in the case of a divorce, it is essential to review your will and make any necessary changes to ensure that it reflects your current situation. A will is a legal document outlining your preferences for the distribution of your assets after your passing.

Even though divorce in Illinois automatically cancels any provisions in a will related to your ex-spouse, it is crucial to double-check your will to make sure it reflects your present desires and adequately provides for your family members.

Power of Attorney

It is important to review and update power of attorney documents if you are going through a divorce. These legal papers authorize someone else to make decisions for you if you become unable to do so.

If your ex-spouse is named as your power of attorney, it is necessary to cancel this appointment and appoint someone else instead. This will help ensure your interests are safeguarded, and your desires are honored.

Beneficiary Designations

When planning your estate, you can choose who should receive your retirement accounts, life insurance policies, and other assets after your death by making beneficiary designations. It is crucial to review these designations and make any necessary updates during divorce proceedings. In Illinois, naming your ex-spouse as a beneficiary is automatically revoked after divorce, but it is still important to check that your designations reflect your current wishes and provide for your loved ones.

Contact a Kane County Family Law Attorney

Divorce can be an overwhelming and emotionally draining process — particularly when it comes to estate planning. An Aurora divorce lawyer can help you protect your assets and safeguard your future during this difficult time. Call The Law Office of Matthew M. Williams, P.C. at 630-409-8184 to get started to make sure your documents are updated and on track for your protection.

Sources: https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt.+V&ActID=2086&ChapterID=59&SeqStart=6100000&SeqEnd=8350000